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The Hidden Cost of Remote Work

The Hidden Cost of Remote Work – Why Leaders Are Losing Their Influence

In the era of remote work, many businesses celebrate flexibility as a productivity win. But for leaders, there’s an unintended consequence: the dilution of their influence. Without regular in-person interactions, leaders lose opportunities to connect, align, and inspire their teams in ways that foster performance and growth. This guide explores why business leaders are losing their impact and how this affects team cohesion, performance, and culture.


The Cost of Leadership Absence

Leaders play a critical role in showing the way and leading by example. Their behaviours set the tone for the organisation, creating a benchmark for how to act, think, and approach challenges. When working remotely, leaders lose the opportunity to:

  • Stop, praise, and coach: In the physical workplace, leaders naturally encounter moments to recognise great work, correct small missteps, or coach someone toward a better outcome. These moments often arise informally, during chance encounters or as they observe the team in action. In a remote setting, these opportunities vanish unless actively scheduled.
  • Model desired behaviours: A leader’s punctuality, professionalism, and approach to challenges are often unconsciously mirrored by their teams. Being visible—whether by rolling up their sleeves during crunch time or demonstrating calm under pressure—is harder to replicate when interactions are limited to structured meetings.

The Subtle Art of Leading by Example

Great leaders inspire action not just through formal communication but by their presence and conduct. In an office, this might look like:

  • Engaging with everyone: Leaders who walk the floor, check in on their teams, and take the time to connect demonstrate accessibility and approachability. This fosters trust and reinforces alignment.
  • Reacting in the moment: Leaders can immediately respond to challenges, showing resilience and problem-solving in action. Teams learn through observation, an experience remote environments rarely provide.
  • Celebrating success: Small wins often go unnoticed in remote settings. In-person interactions allow leaders to stop and praise individuals or teams, reinforcing positive behaviours and morale.

When these actions are absent, teams can feel unmoored, leading to disengagement and a loss of momentum.


The Impact of Missing Visual and Subtle Cues

In-person leadership is enhanced by non-verbal communication and environmental observation. Remote work strips these tools away, making it harder for leaders to:

  • Spot disengagement: A furrowed brow, slumped posture, or lack of energy in the office signals frustration, confusion, or burnout. In video meetings, these cues are often hidden or muted entirely.
  • Sense cultural drift: In-person, leaders can observe how employees interact with one another, identifying early signs of misalignment or tension. Remote work makes it harder to pick up on these signals.
  • Coach in real time: A quick correction or guidance offered in the moment is far more effective than a delayed conversation. Leaders lose the immediacy of teaching and course-correcting when they aren’t physically present.

Quantifying the Value of Direct Influence

Studies consistently show that the physical presence of leaders enhances performance:

  • Direct interactions lead to up to a 25% performance boost compared to remote management (Harvard Business Review).
  • Face-to-face communication is 34 times more effective than written requests (MIT Sloan).
  • Teams with visible leadership report 30% higher engagement and 23% higher satisfaction (Gallup).

The performance gains are tied to the ability of leaders to influence directly through action, presence, and interaction.


The Cost of Lost Opportunities

When leaders are remote, they miss out on the small but impactful moments that define great leadership:

Stopping and praising: Without physical proximity, it’s harder to celebrate effort or outcomes in the moment, leading to diminished morale and motivation.

Real-time coaching: Correcting misunderstandings or guiding someone toward better performance is delayed in remote settings, which may allow small issues to snowball into larger problems.

Reinforcing culture: The visible embodiment of values—whether through work ethic, collaboration, or decision-making—is a powerful tool for alignment. Leaders lose this when they operate primarily via screens.


Hybrid Models: A Compromise, But Not a Solution

While hybrid work models allow for some in-person interaction, they are ultimately a compromise rather than a solution. As a leader, I am not a fan of hybrid approaches because they can often feel fragmented and fail to fully recreate the benefits of consistent, physical presence. However, they are better than nothing, and if a fully in-office model isn’t possible, hybrid arrangements can help mitigate some of the downsides of remote work.

Interestingly, there is evidence suggesting that employee turnover might be lower in remote or hybrid firms, which could be an argument in favour of maintaining some level of flexibility:

  • A 2017 study found that companies offering remote work options experienced a 25% reduction in employee turnover compared to office-only setups.
  • Research by Remote.com noted that businesses with remote and hybrid models reported higher employee retention rates from 2019 to 2022, while turnover for office-based workers increased by 11.5%.
  • A Stanford University study showed that resignations decreased by 33% among employees transitioning from full-time office work to a hybrid schedule.

These findings suggest that flexible work arrangements may enhance retention by addressing employee preferences for work-life balance and autonomy.

That said, while lower turnover is beneficial, it doesn’t eliminate the challenges associated with diminished leadership influence, reduced alignment, and the loss of immediate coaching opportunities. Leaders must weigh these trade-offs carefully when designing their workforce strategies.


Embracing the Challenge

Leadership is as much about being seen as it is about communication. When leaders are visible, they can inspire, guide, and support their teams in real time, creating a culture of excellence through action. Remote work need not entirely erase these opportunities, but leaders must actively find ways to compensate for the gaps it creates.

By leading by example, praising, and coaching in the moment, leaders can retain their influence and foster the high performance that comes with it. Whether through hybrid models or increased strategic interaction, rethinking how leadership is practised in a remote world is essential for long-term success.


Sources:

  1. Gallup: “The State of the Global Workplace”
  2. Harvard Business Review: “Why Face-to-Face Communication is Better than Digital”
  3. MIT Sloan Review: “The Power of Proximity in Leadership”

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

Managing Post-Funding Decisions – Avoiding the OPEX Trap

Managing Post-Funding Decisions – Avoiding the OPEX Trap


Securing an injection of funding is a pivotal moment for any business. It validates your vision and provides the resources to pursue growth opportunities. However, this influx of cash can tempt management teams to expand operational expenditure (OPEX)—particularly through increased headcount—without fully considering the financial impact.

While optimism and ambition are crucial, it’s essential to remember that increasing OPEX too quickly can erode profitability, leaving businesses scrambling to maintain performance rather than improve results. This guide explores how to make smarter, more sustainable decisions when managing post-funding spending, linking costs to revenue, and maintaining profitability.


The Challenge: The Temptation to Over-Invest in OPEX

One common post-funding misstep is rapidly expanding management headcount or other fixed costs to demonstrate progress. With the average UK management salary at £40,000, adding headcount can quickly escalate OPEX.

It’s vital to calculate the financial impact of these decisions. For example:

  • At a 5.7% gross profit margin (the UK average in 2023 and 2024), every £40k in costs requires £702k in additional revenue just to maintain profitability.
  • The margin for error is slim, and poor planning can lead to negative outcomes, even in high-growth scenarios.

This makes it imperative for businesses to align spending with achievable revenue targets while ensuring that profitability is preserved.


The Context: Trends in UK Gross Profit Margins

Over the past three years, the average gross profit margin for UK companies has shown modest improvement:

  • 2022: 3.98%
  • 2023: 5.70%
  • 2024: 5.70%

While these figures represent a positive trend, they also highlight how narrow profit margins remain for many businesses. It’s important to note that these averages vary significantly by industry, meaning your specific gross margin may be higher or lower.

This variability underscores the importance of understanding your business’s unique financial metrics before making significant OPEX decisions.


Recognise Internal Pressures to Expand Teams

It’s not uncommon for existing management to push for the recruitment of additional subordinates after a funding round. In my experience, your management team will often be convinced they need more heads to handle the additional workload and expectations.

While these requests can have merit, it’s essential not to take them at face value. Don’t assume the need for additional headcount is entirely factual. Instead, work through the specifics:

  • What additional effort is required, and is it truly beyond the current team’s capacity?
  • Can the workload be redistributed, streamlined, or supported through tools or processes before committing to new hires?
  • Will this new role genuinely alleviate constraints or simply create new layers of management?

Taking the time to evaluate these pressures critically helps avoid the “easy option” of expanding headcount unnecessarily and ensures every hire contributes directly to value creation and sustainable growth.


Challenge the Justification of Additional Costs

I often hear management teams justify a £40k investment by breaking it down into monthly salary terms—seeing it as a manageable £3,333 per month. While this might make the cost feel more palatable, it’s only part of the picture.

Instead, consider the £702k in additional revenue required to cover that £40k annual cost (based on an average 5.7% gross margin). Spread that revenue target over 12 months—suddenly, it’s a staggering £58,500 in extra revenue per month just to stand still.

When viewed from this perspective, does the investment still feel like a “no-brainer”? Reframing the conversation this way encourages leaders to assess whether the additional cost is truly necessary and whether the associated revenue targets are realistic.


Reframing the Post-Funding Conversation

Instead of asking, “What can we do with this funding?”, ask:

  • “How much additional revenue is required to offset new costs?”
  • “Are these expenditures sustainable given our profit margins?”
  • “How can we optimise existing processes before increasing fixed costs?”

By shifting the focus from spending to sustainability, businesses can avoid common pitfalls and ensure that growth efforts lead to tangible, profitable results.


Practical Framework for Post-Funding Decisions

1. Understand the Financial Impact of Additional Costs

With average UK gross profit margins at 5.7%, it’s essential to calculate the revenue required to break even on new expenditures. For example:

  • Every additional £40k management salary demands £702k in new revenue to maintain profitability.
  • To improve profitability, the required revenue is even higher.

This highlights how even modest increases in OPEX can have outsized implications for revenue targets.


2. Optimise Existing Processes Before Expanding

Use funding to address inefficiencies and strengthen existing systems before committing to increased OPEX. Scaling flawed processes amplifies inefficiencies, leading to wasted resources and reduced profitability. Focus on:

  • Automating repetitive tasks.
  • Streamlining workflows.
  • Enhancing operational systems to handle growth without proportional cost increases.

3. Invest Strategically, Not Reactively

Expanding headcount is often necessary for growth, but it should always align with clear ROI. Before making new hires, assess whether the role:

  • Addresses a critical constraint to growth.
  • Will lead to measurable revenue or efficiency gains.
  • Could achieve the same outcomes through outsourcing or technology.

4. Link Expenditure to Revenue-Generating Activities

Ensure that every expenditure contributes directly or indirectly to revenue. For example:

  • Instead of hiring additional management, could a combination of junior roles and improved systems achieve similar outcomes at a lower cost?
  • Are you investing in sales or marketing capabilities that will drive the necessary revenue growth?

5. Foster Financial Awareness Across the Team

Educate your leadership team on the relationship between OPEX, profit margins, and revenue. Encourage them to think critically about how each decision impacts the bottom line. This not only leads to better decisions but also creates a culture of accountability and strategic focus.


Key Questions for Post-Funding Spending Decisions

  • Does this expenditure align with our growth strategy, or is it reactive?
  • How much additional revenue is needed to cover these costs?
  • Are our current systems optimised to handle growth, or are we scaling inefficiencies?
  • Could alternative solutions achieve the same outcomes more cost-effectively?

The Leadership Advantage: Sustainable Growth Over Quick Wins

Post-funding decisions set the tone for your business’s next phase. While it’s tempting to ramp up OPEX to deliver immediate results, it’s crucial to prioritise profitability and long-term sustainability.

By understanding the financial implications of decisions—such as the revenue required to support an average £40k management salary—you can ensure that your growth efforts are strategic, measurable, and sustainable.

At NorthCo, we specialise in helping leadership teams navigate these critical moments. Our tailored leadership and operational support services ensure that businesses maximise the value of their funding while avoiding common pitfalls.


Conclusion: Grow Smarter, Not Harder

Post-funding growth should be exciting, not stressful. By linking spending to achievable revenue targets and maintaining focus on profitability, you can avoid the OPEX trap and position your business for sustained success.

Subscribe to our newsletter for more actionable insights on leadership, operations, and sustainable growth strategies.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

Why Most CEOs Waste Their HR Function—And How to Fix It

How HR Professionals Can Drive Strategic Priorities Beyond “Personnel” Matters

I’ve always believed that people make the difference in business—whether for good or bad. The right people in the right roles can drive extraordinary outcomes, while the wrong dynamics can bring even the best-laid plans to a grinding halt. Yet, I’ve also observed how many businesses squander the potential of a strong, operationally oriented HR professional.

Too often, HR is relegated to the rear echelons, focused on policies, compliance, and firefighting. But HR shouldn’t be confined to personnel matters—it should be forward deployed at the sharp end of the business, directly supporting strategic goals and operational needs. If businesses want a personnel manager, they should hire one and save the expense of a Chief People Officer or HR Director. But if they’re going to invest in a senior HR professional, they need to fully utilise the range of skills they bring to the table.

The challenge is that many CEOs and MDs simply don’t know how to use professional HR effectively. HR leaders often find themselves underutilised, operating reactively rather than proactively. CEOs need to ask themselves whether they are equipping their HR function to drive the business forward—or keeping them in a “personnel” box that limits their potential.

Here’s how CEOs can get HR out of the personnel shadow and forward deploy them as critical players in achieving strategic goals.


Integrate HR into Strategic Planning

The first step is to stop treating HR as an afterthought in strategic discussions. Too often, HR is brought in to “make it happen” once the plan has already been written. Instead, involve HR from the outset, giving them a seat at the table when strategy is being shaped.

  • Share the strategic priorities with your HR leader and ask for their input on how people and culture can support those goals.
  • Encourage HR to challenge assumptions about talent, structure, and resourcing that could undermine the plan.
  • Ensure HR understands the commercial realities of the business, so their recommendations are grounded in operational needs.

When HR is part of strategic planning, they can align their initiatives with the broader goals of the business, ensuring that people-related efforts are fully integrated into the roadmap.


Define HR’s Strategic Role in the Business

Many CEOs expect HR to focus on compliance, recruitment, and employee relations—important, yes, but hardly strategic. To unlock their potential, CEOs must clearly define the role they want HR to play in achieving the company’s goals.

  • Position HR as a driver of organisational performance, not just a function for “keeping the wheels turning.”
  • Align HR’s priorities with measurable business outcomes, such as revenue growth, market expansion, or operational efficiency.
  • Hold HR accountable for delivering strategic impact, not just ticking boxes.

By framing HR as a performance enabler, CEOs can push the function to rise above transactional work and deliver meaningful results.


Demand a Talent Strategy, Not Just Hiring Plans

If talent is the lifeblood of any business, HR should be the architect of how that talent is acquired, developed, and retained. CEOs must expect HR to take a proactive approach to workforce planning that directly supports the business’s strategic goals.

  • Insist on a workforce plan that anticipates future needs, not just current vacancies.
  • Ask HR to identify critical skills gaps and provide solutions to close them, whether through hiring, upskilling, or restructuring.
  • Ensure HR is building leadership pipelines to secure the future of the business.

A professional HR leader should be able to articulate how their talent strategy is enabling the business to hit its targets—and adjust that strategy as the business evolves.


Use HR to Build a Culture That Drives Results

Culture can make or break a business. Yet many CEOs leave it to chance, assuming it will take care of itself. HR is uniquely positioned to shape and embed a culture that supports the organisation’s strategic objectives.

  • Work with HR to define the cultural attributes that will drive success, such as innovation, accountability, or collaboration.
  • Ask HR to measure and manage cultural alignment across the organisation.
  • Use culture as a tool for differentiation—both to attract top talent and to retain the people who thrive in your business.

By tasking HR with owning and shaping culture, CEOs can ensure it becomes a competitive advantage, not a stumbling block.


Insist on Data-Driven Insights

CEOs rely on data to make decisions—but often, HR is left out of the equation. Modern HR should be as data-savvy as any other function, providing insights that inform strategy and demonstrate impact.

  • Ask HR for data on key metrics like retention, engagement, and workforce productivity.
  • Expect HR to use predictive analytics to anticipate challenges, such as skills shortages or attrition risks.
  • Require HR to quantify the ROI of their initiatives, showing how they contribute to the bottom line.

A professional HR leader who can speak the language of data will quickly earn their place as a trusted advisor to the CEO.


Empower HR to Lead Change Management

Strategic priorities often involve significant change—whether it’s restructuring, entering new markets, or adopting new technologies. HR should be at the forefront of managing these transitions, ensuring they succeed from a people perspective.

  • Involve HR in planning and executing change initiatives, not just communicating them.
  • Encourage HR to develop robust change management strategies that minimise disruption and build buy-in.
  • Hold HR accountable for the success of change efforts, measuring adoption rates and long-term outcomes.

By empowering HR to lead on change, CEOs can ensure that strategic initiatives are not derailed by poor execution or resistance to change.


Expect Strategic Impact from HR

Finally, CEOs must set the expectation that HR will deliver tangible, strategic results. This means moving beyond vague goals like “improving employee satisfaction” and focusing on outcomes that directly support the business.

  • Ask HR to demonstrate how their work is driving business performance, whether through improved productivity, reduced costs, or faster time-to-market.
  • Celebrate HR’s successes and communicate their impact across the organisation.
  • Continuously challenge HR to push boundaries and find new ways to add value.

When CEOs hold HR to high standards of performance and impact, they create the conditions for HR to truly excel.


Final Thoughts

Many businesses underutilise their HR leaders, keeping them stuck in a “personnel” mindset that limits their potential to add strategic value. But HR has the capability to be so much more. When fully utilised, HR can act as a force multiplier for achieving business goals—driving performance, shaping culture, and enabling change.

If you’re a CEO or MD, it’s time to ask yourself: Am I using my HR team to their full potential, or am I keeping them in the shadows of “personnel” work?

Businesses succeed or fail on their people. HR has the potential to tip the scales—but only if they’re given the tools, mandate, and trust to lead from the front.


This guide is part of NorthCo’s Leadership Series—designed to help leaders unlock the full potential of their teams. Subscribe to our newsletter for actionable strategies and insights that keep you one step ahead.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

Come On, Mav, Do Some of That Pilot Stuff

Come On, Mav, Do Some of That Pilot Stuff

In the iconic scene from Top Gun: Maverick, Maverick’s co-pilot shouts, “Come on, Mav, do some of that pilot sh**!” It’s a moment that epitomises trust, confidence, and clarity of roles. Maverick, the leader in the cockpit, doesn’t hesitate—he does what he’s there to do, performing at his absolute best.

This principle applies beautifully to leadership, particularly at the top of an organisation. A CEO, like Maverick, needs to focus on doing their “pilot shit”—steering the business, making the critical calls, and driving the company toward its mission. But this is only possible if they’ve built a senior team they can look to, left and right, and trust implicitly to do their job exceptionally well. Unfortunately, for many leaders, that’s not the reality they’re living.


The CEO and the Mediocre Team

I’m currently working with a talented young CEO who finds himself in this very predicament. He’s running a business with incredible potential, yet his senior team isn’t up to par. They’re good, but not great—and in some cases, they’re mediocre. The CEO knows this, but he’s been tolerating it for too long. The consequence? He’s constantly drawn into the weeds, firefighting problems that his team should be solving. Instead of focusing on what he does best, he’s caught up in operational distractions, unable to perform at the level the business demands.

This isn’t uncommon. Many leaders—particularly first-time CEOs—struggle to recognise when their team isn’t cutting it. They rationalise the situation, telling themselves it’s better to stick with familiar faces than disrupt the status quo. But here’s the hard truth: a CEO’s performance is only as strong as the team supporting them. If that team isn’t A-grade, the CEO can’t fly the plane properly.


Why Trust and Excellence Are Non-Negotiable

For a CEO to focus on their role, they need to know that their senior team is rock-solid. This isn’t about micro-managing or second-guessing—it’s about absolute trust. When a CEO has a capable, high-performing team, they can focus on the big picture:

  • Driving strategy: setting direction and ensuring everyone is aligned with the mission.
  • Building relationships: managing key stakeholders, whether investors, clients, or partners.
  • Making critical decisions: taking the calculated risks that move the business forward.
  • Inspiring the organisation: rallying the team around the vision.

When a CEO is forced to micromanage or compensate for weak team members, they lose the bandwidth to excel. Worse, the business stagnates because the leader is operating below their potential.


The Danger of Accepting Mediocrity

Accepting mediocre performance in a senior team isn’t just a small problem; it’s a silent killer. Mediocrity breeds complacency, and complacency is contagious. When a team member consistently underdelivers, it sends a message to the rest of the organisation: “This level of performance is acceptable here.” It erodes standards, diminishes morale, and ultimately hurts the business’s ability to compete.

In the case of the CEO I’m working with, he’s come to realise that tolerating mediocrity is no longer an option. The business is at a pivotal stage, and to achieve its ambitions, he needs a team that matches his drive and ability. It’s time for a restructure.


Building the Right Team: A Playbook for CEOs

If you’re a CEO looking to build—or rebuild—your senior team, here are the key steps to take:

Be Honest About Performance Take a hard look at your team. Are they truly delivering what the business needs? If the answer is no, it’s time to address it. Be clear about your expectations and give people the chance to step up—but don’t be afraid to make changes if they don’t.

Define Roles and Expectations Every member of your senior team should have a crystal-clear understanding of their role and what success looks like. Ambiguity is the enemy of high performance.

Recruit for Excellence When bringing in new team members, aim high. Look for people who not only have the skills and experience but also align with your values and culture. A strong senior hire can elevate the entire team.

Foster Collaboration and Trust A great senior team isn’t just a collection of talented individuals—it’s a cohesive unit that works seamlessly together. Invest time in building trust and ensuring alignment.

Hold People Accountable Once you’ve set expectations, hold your team to them. Accountability drives performance and reinforces a culture of excellence.

Be Willing to Restructure Sometimes, the team you started with isn’t the team you need for the next stage. That’s okay. Leadership is about making tough decisions in the best interest of the business.


    The CEO’s Moment of Truth

    For the young CEO I’m working with, the challenge is clear: he needs to look left and right at his senior team and see a group of people he can trust unequivocally. Only then will he be able to step back and focus on doing his “pilot shit.” It’s a tough journey, but one that will pay dividends—not just for him, but for the entire organisation.

    So, if you’re a CEO struggling to perform at your best, ask yourself this: is your team enabling you to lead, or are they holding you back? If it’s the latter, it’s time to take action. Because at the end of the day, your job is to fly the plane—and you can’t do that if you’re constantly worried about the people in the cockpit with you.

    About the Author

    Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

    Nothing to See Here

    Spotting The “Best Practice” Facade.

    Challenging “Best Practice”Are You Using It to Signal Authority or Drive Real Value?

    During a recent assignment, I attended a presentation from a CTO who was outlining the company’s technology strategy. Midway through his slides, he mentioned that certain processes were “aligned with Best Practice”—a phrase he seemed confident would solidify his position. However, as the presentation unfolded, it became clear that this endorsement was, at best, a veneer. There was little evidence that he actually understood the “Best Practice” he was referencing, nor could he explain how it applied specifically to our challenges. The phrase had simply been added because it sounded credible, as if invoking “Best Practice” alone would close down debate and validate his decisions.

    It’s a scenario I’ve encountered repeatedly in leadership discussions. While “Best Practice” can be a valuable concept, too often it’s used as a placeholder—a buzzword that fills in for genuine understanding or critical analysis. Leaders invoke it as a signal of authority, but all too often, it becomes a way to avoid difficult questions, diminish curiosity, and stifle innovation. This trend begs the question: does invoking “Best Practice” truly reflect a commitment to excellence, or are we merely following a script?

    To be clear, I’m not advocating against following best practices where they truly apply. When a practice is well-evidenced and genuinely serves your specific needs, it can be invaluable. But there’s a difference between mindful adherence and unthinking obedience. My challenge is for leaders to approach “Best Practice” with curiosity, always asking how it applies to their unique situation rather than accepting it at face value.

    In this article, I want to encourage you, as a leader, to rethink your reliance on “Best Practice” as an unexamined benchmark. Instead of using it as a conversational trump card, let’s foster a culture where each so-called “Best Practice” is scrutinised, questioned, and adapted to meet the unique needs of your business. This means asking uncomfortable but necessary questions when “Best Practice” is cited and encouraging your team to demonstrate real understanding and curiosity.

    Recognising the Hidden Motives Behind “Best Practice”

    One key issue with “Best Practice” is that it’s often wielded as a tool for control. Some leaders use it to assert authority or shut down debate, making it difficult for alternative perspectives to surface. Rather than fostering a culture of inquiry and adaptability, this approach creates a rigid environment where questioning is subtly (or not so subtly) discouraged.

    As a leader, it’s essential to recognise when “Best Practice” is being used as a tool for avoiding scrutiny or as a quick fix to justify decisions. When left unchecked, this can lead to stagnation and missed opportunities. The true value of “Best Practice” lies not in its mere adoption but in its thoughtful, context-specific application.

    Spotting the “Best Practice” Facade

    Here are some signs that “Best Practice” might be used without genuine understanding:

    1. Lack of Contextual Relevance: When asked to explain how a best practice specifically applies to their project or team, some managers may struggle to articulate its relevance. They might use generic statements like “It’s industry standard” without connecting it to the unique dynamics of their own operation.
    2. Buzzword Overload: If terms like “Best Practice,” “industry-leading,” or “state-of-the-art” are sprinkled into presentations without supporting detail, it’s often a sign that these phrases are being used to impress rather than inform.
    3. Resistance to Challenge: Leaders who cling to “Best Practice” as a defence are often resistant to feedback or challenges, even when alternate approaches might offer a better fit. This can hinder innovation and frustrate team members who want to contribute ideas.

    Equipping Yourself to Question “Best Practice”

    To move beyond surface-level adherence, start by encouraging your managers to ask questions that reveal the depth of understanding behind “Best Practice” claims:

    • “What makes this the best approach for our unique situation?”
    • “How has this practice been adapted by other teams facing similar challenges?”
    • “Are there any limitations to this approach that we should be aware of?”

    These questions prompt presenters to prepare meaningful answers, grounded in specifics rather than generic phrases. Moreover, they signal that “Best Practice” isn’t a substitute for critical thinking or adaptability—it’s a baseline that should always be subject to scrutiny.

    Building a Culture of Curiosity and Customisation

    To move beyond superficial references to “Best Practice,” aim to foster a culture of curiosity. Empower your team to question established norms and to approach challenges with an open mind. When managers are encouraged to develop solutions that fit their specific circumstances, they develop a stronger sense of ownership and a greater capacity for innovation.

    Imagine leading a team that not only follows “Best Practice” but adapts it intelligently to fit its unique goals. Such a team moves beyond imitation and becomes a driver of true best practices within the business, building a legacy that goes beyond adherence to industry norms.

    Conclusion

    The next time “Best Practice” is cited in a presentation or strategy meeting, pause and consider its application. Is it there as a shield, an empty phrase, or is it truly adding value? By fostering a leadership culture that values understanding over signalling, curiosity over complacency, you can move beyond buzzwords and into a realm of genuine, sustainable success.

    About the Author

    Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

    Sastrugi

    Shifting Mindset in Distressed Business Situations

    Navigating the Winds of Change: Shifting the CEO and Senior Management Mindset in Distressed Situations

    In a previous post, Navigating turbulent waters, , I explored how a CEO coach or interim leader can support management teams through turbulent times by offering structured guidance and fostering a mindset shift. My own experience as a CEO in challenging situations uniquely positions me to empathise with the CEO and management team when I am brought in during times of crisis. I understand the weight of responsibility they carry, having been there myself. While I am no pushover, I pride myself on creating a collaborative, supportive relationship, fostering a team environment that allows the leadership group to work together effectively. My role is to help them move from ‘business as usual’ (BAU) to a mindset equipped to navigate distress, maintaining authority with respect and guiding them through a transition toward a shared, strategic vision for recovery and growth.

    This collaborative approach is especially critical when the business has breached its covenants, and management teams, understandably, may feel defensive or uncertain about next steps. By prioritising empathy and open communication, we can begin to make the shifts necessary to transform entrenched ways of thinking into proactive, resilient strategies.

    Why Changing Mindsets is Crucial in Distressed Situations

    When covenant breaches occur, the immediate reaction from senior management is often defensive. This is understandable – the leadership team has likely invested years into developing and executing strategies they believed were sound. But when those strategies falter, it’s imperative to see this as an opportunity to reset, re-evaluate, and create a new path forward.

    Shifting mindset patterns in a management team can sometimes feel like navigating sastrugi—(That’s Sastrugi in the image for thei post BTW) those sharp, wind-carved ridges of snow and ice that reshape themselves with every storm. Just as sastrugi require a careful approach to avoid tripping or losing momentum, entrenched ways of thinking within a team need gradual reshaping. By understanding these ridges as natural but mutable formations, we can begin to work collaboratively to smooth out obstacles, helping leadership teams transition from a defensive posture to one of opportunity.

    My goal as an Interim CEO is to help the team understand that, while this may be an uncomfortable transition, it is also an opportunity to think beyond the old model and explore solutions that can fundamentally reshape the business. This is where the mindset shift becomes critical: to see this not as a breakdown, but as a chance to rebuild with a sharper, more resilient approach.

    Bridging the Gap Between BAU and a Distressed Mindset

    When a business is in distress, there is a need for a clear break from BAU. However, rather than dictating change, my approach is to bring the senior team on a journey of honest self-assessment and collaboration. This journey is crucial to achieving a mindset of adaptability and proactivity in challenging times.

    Setting the Foundation of Trust and Mutual Respect

    • A defensive response, as I saw in the example below, often stems from fear or frustration – both understandable in a high-stakes situation. My role is to balance authority with empathy, allowing the team to feel valued and supported while clearly communicating the need for a change in mindset. Once they understand that their experience is respected, they become more willing to engage in a new direction.

    Creating Space for Constructive Feedback

    • In high-pressure settings, feedback can be tough to hear. But by creating an environment where honest feedback is received as part of a collaborative effort, not an attack, CEOs and management teams become more open to ideas that drive change. Recently, after a mildly tetchy board meeting where one of the funders shared honest but fair feedback, I noticed the CEO reacting defensively. Given the pressures he was under, the comments understandably struck a nerve. Recognising this as a crucial moment, I pulled him aside afterward and had a candid chat about seeing feedback not as an attack but as an opportunity for re-evaluation. An hour later, he called me with an insight I was thrilled to hear: “I want to thank you for the chat, and I want you to know that I’ve taken your advice onboard. I now realise that it’s an opportunity for us to re-imagine the business.”

    Honesty Without Aggression

    • In these situations, transparency is vital, but it doesn’t require confrontation. My approach is to provide unembellished feedback with clarity and respect. By presenting the reality of the business’s financial and operational situation without placing blame, the team can objectively assess the challenges and begin to see ways forward. Leaders begin to re-frame the situation from crisis management to opportunity creation.

    Fostering a Culture of Innovation and Flexibility

    • The greatest transformation occurs when CEOs and senior management teams move from a defensive stance to a proactive one. Rather than clinging to previous successes, they begin to ask, “What’s possible now?” – a question that brings previously unconsidered ideas to light. By shifting the emphasis from “preserving what we have” to “creating what we need,” they start building resilience and agility into the business.

    Driving Alignment Through a Shared Vision

    • Ultimately, the goal is mutual consent to a new strategy, where everyone understands the vision and is committed to it. With the CEO mentioned earlier, the shift from defensiveness to collaboration opened the door to a re-imagined business model, one that embraced rather than resisted change. This creates a foundation of alignment, allowing the team to drive forward with a renewed sense of purpose.

      The Role of the Interim CEO in Shaping a New Mindset

      When I’m brought into these situations, it’s not simply to impose authority but to foster a culture that values adaptability, resilience, and mutual respect. Leaders often resist change not out of stubbornness but from a deep commitment to what they’ve built. By helping them re-frame difficult situations as opportunities rather than crises, I help them harness their expertise and passion to redefine the future of the business.

      Final Thoughts

      The CEO’s mindset is the cornerstone of organisational resilience, especially in distressed situations. Through candid discussions, like the one I had with the CEO after that challenging board meeting, leaders can transition from a mindset of defence to one of opportunity. By fostering an environment where feedback is valued, honesty is prioritised, and collaboration is central, the senior team can align on a re-imagined vision, build strength from challenge, and steer the business toward a dynamic, resilient, and ultimately successful future.

      About the Author

      Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

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      Managing Negativity Bias in Operational Analysis

      Managing Negativity Bias in Operational Analysis and Strategic Problem-Solving


      At NorthCo, our work often centres around identifying operational efficiencies, guiding contingency planning, and solving strategic challenges. Conducting in-depth operational reviews, planning for potential risks, and designing actionable strategies demand a careful balance of objective analysis and forward-looking optimism. Yet, as we delve into these high-stakes assessments, a common human tendency – the “negativity bias” – can sometimes cloud our judgement, subtly pushing us to focus disproportionately on risks over opportunities.

      Negativity bias, a hardwired evolutionary response, favours attention to potential threats, which has served humanity well for survival. But in today’s business environment, this bias can lead to overly cautious decisions, missed opportunities, and an imbalanced focus that limits growth. In NorthCo’s context, understanding and managing negativity bias is crucial to delivering balanced and actionable solutions for our clients. Below, we explore how negativity bias can affect operational analysis, contingency planning, and problem-solving, and we provide actionable strategies to counteract it.


      The Role of Negativity Bias in Operational Leadership

      In operational and strategic consulting, our ability to objectively assess and guide our clients’ next steps is essential. However, negativity bias can lead us to overemphasise potential pitfalls or problems, obscuring an objective view of both the current state and the optimal path forward. For example:

      • Operational Analysis: In operational reviews, focusing too heavily on deficiencies without balancing them against strengths can lead to an overly negative portrayal, which may cause clients to adopt overly conservative measures, limiting potential growth.
      • Contingency Planning: When preparing for risks, it’s natural to be cautious, but too much focus on worst-case scenarios can restrict proactive problem-solving and result in overly complex or costly safeguards that may not be necessary.
      • Strategic Sessions: In strategy development, an overemphasis on past challenges or potential obstacles can detract from the client’s vision and make it difficult to pursue bold initiatives.

      A critical aspect of NorthCo’s role is to help clients achieve a balanced perspective that acknowledges risks while also focusing on their strengths and opportunities. By understanding negativity bias and its effects, we can guide clients toward well-rounded, resilient solutions.

      Identifying Negativity Bias in Analysis and Planning

      Recognising negativity bias is the first step in countering it. In our engagements, the following signs can indicate negativity bias is impacting our assessments or strategic recommendations:

      • Overemphasis on Shortcomings: If operational reviews dwell primarily on what’s wrong without sufficient attention to operational strengths, we risk undervaluing existing assets that could form the basis for future growth.
      • Avoidance of Bold Solutions: In contingency planning, a disproportionate focus on failure scenarios can prevent us from presenting forward-looking solutions or advocating for growth opportunities.
      • Echoing Past Problems: Focusing excessively on past missteps during strategy sessions can stifle innovation and reinforce outdated narratives, rather than promoting a proactive approach to future challenges.

      Identifying these tendencies during planning sessions or reviews enables us to course-correct and maintain an objective stance.

      Strategies to Overcome Negativity Bias in NorthCo’s Services

      To deliver balanced solutions, NorthCo applies the following strategies to ensure that our assessments, planning, and problem-solving approaches maintain a forward-thinking and constructive focus:

      • Highlight Both Strengths and Challenges: In operational reviews, we ensure a comprehensive assessment by presenting strengths alongside areas for improvement. Recognising existing efficiencies not only boosts morale but also informs realistic, sustainable action plans.
      • Frame Contingencies with a Growth Mindset: When discussing potential risks, we balance this with considerations for positive outcomes. Rather than focusing only on what could go wrong, we work with clients to identify opportunities that could arise in different scenarios, encouraging a mindset that is both cautious and growth-oriented.
      • Incorporate Balanced Feedback Loops: During strategy sessions, we guide clients to reflect on both achievements and setbacks, supporting a culture that learns from the past without being bound by it. By celebrating what works, we empower teams to carry forward effective practices while addressing improvement areas.
      • Use Constructive Language: Our team takes care to use balanced language that accurately conveys both the challenges and opportunities facing the business. Instead of framing an issue as a failure, we might present it as an opportunity to strengthen processes or realign resources. This approach fosters a positive perspective even in challenging conversations.
      • Promote a Collaborative Review Approach: Rather than merely pointing out problems, NorthCo’s approach involves the client team in developing solutions. This fosters buy-in and promotes a shared focus on overcoming challenges, as well as recognising the potential for growth and success.

      Countering Negativity Bias in Business

      To manage negativity bias effectively, businesses can adopt structured practices that promote a balanced approach to risk and opportunity. These methods help leaders maintain an objective perspective and make decisions that are as informed by possibilities as they are by risks:

      • Use Balanced Scorecards: Regularly track both positive and negative performance metrics to ensure decisions are informed by a full picture of company health.
      • Implement Scenario Planning: Weigh both risks and rewards in strategic decisions to counterbalance a natural focus on threats.
      • Encourage Constructive Feedback: Ensure feedback sessions focus on strengths as well as areas for improvement, reinforcing positive behaviours and achievements.
      • Regular Review of Innovations and Successes: By consciously reviewing successes and lessons from previous achievements, leaders can shift focus from just solving problems to seeking growth opportunities.

      Creating a Positivity-Conscious Framework for Clients

      An integral part of NorthCo’s service is helping clients create an environment that balances caution with optimism, especially in high-stakes or operationally complex scenarios. We apply the following methods to help clients counter negativity bias within their own teams:

      • Emphasise Successes During Debriefs: After operational analysis or strategic sessions, we actively highlight successes and positive aspects, showing how these can be leveraged for future growth. This helps instil a mindset focused on continuous improvement rather than fear of failure.
      • Encourage a Future-Focused Vision: In contingency planning and strategy, we encourage a “what could be” mindset, helping teams envision the potential rewards of calculated risks. By encouraging a forward-looking approach, we equip leaders with a perspective that looks beyond current issues to future possibilities.
      • Conduct Regular, Balanced Reviews: We recommend regular reviews that objectively assess both successes and areas for improvement. This practice enables clients to make informed decisions without dwelling disproportionately on setbacks, keeping morale high and focus sharp.

      Building a Resilience-Oriented Culture

      At NorthCo, we believe that resilience is essential for navigating business challenges, particularly in dynamic or high-risk environments. A resilience-oriented culture doesn’t simply bounce back from setbacks; it leverages them as learning experiences, which in turn reduces the influence of negativity bias. Here’s how NorthCo helps organisations cultivate resilience:

      • Encourage Adaptive Problem-Solving: We train leadership teams to approach challenges with flexibility, assessing multiple solutions rather than fixating on a single path. This adaptability ensures that teams can pivot effectively when facing unforeseen issues.
      • Integrate Continuous Learning Practices: NorthCo’s strategy sessions include reflection exercises that encourage learning from both successes and challenges. By fostering an environment that views setbacks as learning opportunities, we help teams embrace a growth mindset.
      • Strengthen Team Collaboration: A resilient culture thrives on collaboration, where different perspectives can balance the natural tendency toward negativity. We promote open communication channels and regular team dialogues, which help team members feel supported and reinforce a shared commitment to collective success.

      NorthCo’s Approach to Balanced Leadership

      Counteracting negativity bias requires a deliberate and structured approach. NorthCo specialises in creating this balance, providing clients with tools to build resilience and optimism into their strategic planning and operational analyses. By focusing on both challenges and opportunities, we ensure that our clients are equipped to make confident, well-rounded decisions that drive sustainable growth.

      Ready to overcome negativity bias in your organisation? Contact NorthCo to explore how we can help your team achieve a balanced perspective that empowers success.

      Research and further reading

      1. Research on Negativity Bias – American Psychological Association’s article on negativity bias.
      2. Behavioural Economics and Loss Aversion – Daniel Kahneman’s work on loss aversion, Khan Academy – Nobel Prize references for behavioural economics.
      3. Mindfulness in Business – Harvard Business Review’s articles on mindfulness in leadership, available on HBR.org.
      4. Building Resilience in Teams – McKinsey (McKinsey.com) and Forbes(forbes.com) articles about fostering resilience in workplace culture.

      About the Author

      Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

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      Why Can’t Interim FDs “Really” Fix Operational Issues?

      When businesses encounter turbulent times, it’s tempting to bring in an experienced Interim Finance Director (FD) to steady the ship. With cash flow under pressure and bottom-line metrics needing scrutiny, who better than a finance expert? But here’s the twist: if the issue is operational, a finance-focused leader may only scratch the surface without getting to the core problem.

      The Pitfall of the “Obvious” Solution

      Imagine a business struggling with classic financial symptoms — rising costs, declining profits, sluggish cash flow. The inclination might be to address these directly, tightening budgets, restructuring debt, optimising cash flow. While these steps may be essential, they often only treat the symptoms, the “obvious” pain points, rather than the root causes.

      An Interim FD, for all their expertise, may view operational issues mainly through a financial lens, potentially missing deeper causes beyond the balance sheet. When a business faces operational challenges, it needs an interim leader with an operational background who instinctively asks: “Yes, but what’s the real issue here?” Without this operational insight, a purely financial approach might even compromise the long-term health of the business. Quick fixes aimed solely at financial metrics can create underlying stress points in the operation, resulting in team burnout, reduced efficiency, and ultimately a weakened competitive position.

      Finding the Real Issue Beneath the Surface

      A true operational problem solver knows that the first explanation often obscures the root cause. They won’t stop at initial answers but look beyond the obvious, drilling into details, understanding processes, and connecting the dots. An interim leader with a solid operational background can be invaluable in this way — they’ve seen how inefficiencies, cultural friction, or outdated workflows create hidden bottlenecks that manifest as financial symptoms.

      Avoiding the Advice Trap

      In The Advice Trap, Michael Bungay Stanier explores how rushing to provide answers can lead to surface-level solutions, overlooking complex underlying problems. For interim leaders, The Advice Trap offers a powerful reminder: effective problem-solving starts with curiosity, not quick answers.

      An experienced operational interim doesn’t fall into this “advice trap.” Instead, they stay open, listen deeply, and ask probing questions, letting the full story emerge and building a multi-faceted view. When they finally act, it’s with a clear understanding of both symptoms and underlying causes.

      Practical Questions to Ask

      To truly uncover operational issues, a skilled interim will ask questions that go beyond the surface. Here are a few examples of questions that help cut through to the root of the problem:

      • “What specific challenges are hindering this process?”
      • “Why has this process been done this way until now?”
      • “If this challenge were resolved, what new challenges might emerge?”
      • “Who else should we consult on this?”
      • “What makes this issue complex or challenging to resolve?”

      These questions prompt the team to think critically and deeply, helping ensure solutions are comprehensive and sustainable.

      Key Characteristics of an Effective Operational Interim

      Here’s what distinguishes a truly effective operational interim:

      • Curiosity and Open-Mindedness: They dig deep, seeking to understand before acting.
      • Empathy and Emotional Intelligence: They can read the room, engaging team members at all levels, creating openness to change.
      • Adaptability and Resilience: They stay agile, adjusting their approach when conditions shift.
      • Unbiased Perspective: As an outsider, they bring a fresh view, challenging assumptions and spotting hidden issues.
      • Results-Focused, Collaborative Leadership: They empower the team to achieve sustainable results, focusing on leaving the team stronger than before.

      Getting the Team Onboard

      Successful change requires more than expertise; it demands a blend of authority and approachability. The best interims gain the trust and commitment of the whole team — a critical factor in ensuring operational improvements stick.

      An effective interim leader knows that true success lies in harnessing the team’s knowledge to uncover solutions and overcome obstacles together. Rather than imposing fixes, they create a culture of collaboration, leading the team to dig into pain points and develop solutions they feel ownership of.

      Long-Term Impact and Cultural Shifts

      An impactful operational interim doesn’t just solve immediate issues — they build a culture of continuous improvement:

      • Creating Momentum for Lasting Improvement: They encourage the team to question practices, creating a foundation for long-term progress and resilience.
      • Developing Champions of Change: A successful interim leader empowers team members to be champions of change, leaving behind a team ready to tackle future operational challenges confidently and independently.

      Reflection and Call-to-Action

      Reflect on your current challenges: Are you tackling surface-level symptoms or focusing on the root cause? When you bring in interim support, are you choosing someone who empowers your team to drive sustainable improvements? Remember, prioritising operational insight over financial metrics alone may be the difference between a short-term fix and long-term success.

      If you’re ready for true operational transformation, consider bringing in an operational interim who won’t stop at the first answer but will dig deep and bring your team along on the journey. With the right interim at the helm, operational success becomes a team effort — and the entire organisation moves forward together.


      By recognising the risks of a finance-first approach to operational issues, leaders can safeguard their business’s long-term prospects. True success often requires seeing beyond the balance sheet, aligning operational improvements with a culture that values transparency, collaboration, and continuous growth.

      About the Author

      Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

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      A Quick DIY Guide to Driving Operational Efficiency

      A Quick DIY Guide to Driving Operational Efficiency and Growth

      For many business leaders, the pressure to maintain operational efficiency while managing transitions and pushing for growth can feel relentless. The window for making strategic moves can close quickly, and it’s often better to get ahead of the wave before your flexibility starts to shrink. Taking control early—before conditions force your hand—provides far more room for effective decision-making.

      While bringing in expert operational advisors can be transformative, you can also take proactive steps internally to identify opportunities and address inefficiencies before they become major roadblocks. This guide offers a straightforward DIY approach to managing your operations more effectively, allowing you to take control of your organisation’s future.

      1. Conduct an Operational Review

      Your first step should be an honest and thorough review of your current operations. Take the time to step back and assess your existing processes. Ask yourself the following questions:

      • Are there any bottlenecks or inefficiencies slowing down progress?
      • Which processes are outdated, unnecessary, or redundant?
      • How effectively are you utilising your current resources?

      DIY Tip: Bring together your leadership team for a process mapping session. Map out each key operational process from start to finish, identifying pain points or areas where things slow down. Be critical but constructive in your analysis—this is your chance to streamline and improve.

      2. Evaluate Your Cost Structure

      Cost rationalisation is often the key to unlocking more efficient operations and preparing for future growth. But this isn’t just about cutting costs—it’s about ensuring resources are allocated effectively.

      DIY Tip: Go through a line-by-line review of your cost base. Separate costs into two categories: essential and non-essential. Essential costs directly contribute to your core business objectives, while non-essential ones can potentially be reduced or eliminated.

      Be sure to involve your finance team in this exercise and look for opportunities where small changes can create significant savings without disrupting business operations.

      3. Create a Contingency Plan

      Every business faces uncertainty, and successful leaders know that the best way to manage uncertainty is to plan for it. Contingency planning isn’t just about preparing for the worst; it’s about giving your team the confidence to make decisions quickly when circumstances change.

      DIY Tip: Start by identifying your biggest risks—whether they are operational, financial, or related to external factors like market shifts. Then, develop a trigger-based plan. For example, if revenues fall below a certain threshold, what immediate actions should you take? Be specific about decision points, who is responsible, and what actions should be taken.

      Contingency plans should be reviewed regularly, especially as new risks emerge.

      4. Facilitate Collaborative Planning Sessions

      Often, the best ideas and solutions come from within your team. By creating a collaborative environment, you can leverage the collective knowledge and experience of your leadership team to drive growth and efficiency.

      DIY Tip: Run a facilitated planning session with your leadership team. Start by clearly defining the key objective—whether it’s improving efficiency, transitioning the business, or preparing for growth. Use structured brainstorming techniques like SWOT analysis or scenario planning to encourage diverse perspectives and creative solutions.

      Remember to document your ideas and develop a clear action plan at the end of the session, with individual responsibilities and deadlines.

      Final Thoughts

      While operational advisors can offer immense value in driving rapid results and growth, there’s a lot you can do as a leader to take the reins on operational improvement. By systematically reviewing your operations, evaluating costs, planning for uncertainty, and facilitating strong collaborative sessions, you can lay the groundwork for long-term success.

      When you need deeper expertise or an external perspective, that’s when professionals step in to help. But until then, these steps can serve as your guide to improving efficiency and positioning your business for growth.

      You can read about some of our recent case studies here.

      About the Author

      Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

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      Focus on the Gains and not just The Gaps

      Bridging Operational Gaps: The Power of Focusing on Gains, Not Just Gaps

      In leadership, especially in operational management, the pressure to close gaps can be overwhelming. Leaders are often tasked with achieving ambitious goals, fixing underperforming areas, and driving continuous improvement. It’s easy to fall into the mindset of constantly measuring yourself or your organisation against an ideal that seems far off. This “gap-focused” thinking can create frustration, stress, and even a sense of failure.

      But there’s another way to look at progress—one that’s just as important as identifying gaps: focusing on the gains. Let’s explore how leaders can shift their mindset to see both the gaps and the gains, and why this shift is crucial for long-term success.

      What Are the Gaps?

      In the context of operational management, gaps are the areas where performance doesn’t meet expectations. These might be gaps in efficiency, team skills, strategy execution, or even organisational culture. Identifying gaps is essential for growth. After all, knowing what’s not working helps you direct attention to the right areas for improvement.

      However, problems arise when leaders become too focused on the gap between where they are now and where they want to be. This is particularly common in high-pressure environments where progress often feels slow or insufficient. When you constantly measure your business or your leadership against an ideal, the focus on what’s missing can quickly overshadow what’s been achieved.

      The Gain: Celebrating Progress

      The “Gain” is all about measuring progress based on how far you’ve come, not how far you still need to go. In leadership, recognising gains means acknowledging the incremental improvements and victories along the way. It’s about celebrating the fact that your organisation is more efficient, better resourced, or more agile than it was a few months ago—even if it hasn’t yet hit the ultimate target.

      This doesn’t mean ignoring the gaps, but rather ensuring that progress is given its due weight. Too often, leaders move the goalposts without taking the time to acknowledge how much ground has already been covered. By regularly shifting focus to what has been gained, you create a more balanced, optimistic, and productive approach to leadership.

      Why the Gap vs. Gain Mindset Matters

      1. Boosts Morale and Motivation
        Focusing solely on gaps can lead to burnout—for both you and your team. It fosters a culture where nothing is ever quite good enough. But when you take time to acknowledge gains, it reinforces a sense of achievement. Leaders and teams who feel their progress is noticed are more motivated to continue pushing forward. Research shows that focusing on strengths and positive accomplishments leads to higher employee motivation and performance (Luthans & Youssef, 2007).
      2. Strengthens Resilience
        Leadership, especially in interim roles or during times of change, can feel like an uphill battle. If you only see the distance still to go, you risk becoming discouraged. By regularly reflecting on gains, you build resilience, giving yourself and your team the psychological fuel needed to tackle future challenges. Carol Dweck’s work on the growth mindset illustrates that individuals who focus on progress are more likely to embrace challenges and persist in the face of setbacks (Dweck, 2006).
      3. Creates a Growth-Oriented Culture
        When you model a “gain” mindset, it encourages others to do the same. It shifts the culture from one of perfectionism to one that values continuous improvement. It helps your team focus on learning and growing, instead of feeling inadequate or overwhelmed by goals they haven’t yet reached.
      4. Improves Strategic Focus
        Celebrating gains doesn’t just improve morale—it sharpens your strategic focus. When you assess what’s working and what progress has been made, it helps clarify where to direct your next efforts. Understanding your gains makes it easier to fine-tune your strategy based on proven successes rather than just focusing on fixing problems.

      How to Build the Gain Mindset into Your Leadership

      1. Regular Progress Reviews
        Incorporate regular check-ins that specifically highlight progress made, not just areas of improvement. These could be formal reviews or simple team discussions that take a moment to reflect on what’s working. This habit keeps the gain mindset front and centre in your leadership approach.
      2. Break Large Goals into Milestones
        To help teams focus on gains, break down big, long-term goals into smaller milestones. Celebrate each step forward. These incremental wins are important for maintaining momentum and preventing the overwhelm that often comes from only seeing the big gap ahead.
      3. Embed Reflection into Your Routine
        For yourself as a leader, set aside time—perhaps on Buffer Days—to reflect on gains. Use this time to consider how far you’ve come, the challenges you’ve overcome, and what you’ve learned. Regular reflection helps internalise the gain mindset and keeps you motivated for future challenges.
      4. Balance Feedback
        When giving feedback, balance your discussion of gaps with recognition of gains. Acknowledge the team’s progress before diving into what still needs to be done. This keeps the tone constructive and empowers people to approach problems with confidence, rather than discouragement.

      Bridging Gaps by Building on Gains

      At NorthCo, our approach to leadership is about more than just fixing problems and closing gaps. We believe the key to effective leadership is in finding the balance between recognising where improvements are needed and celebrating how much progress has already been made. It’s this “Gap vs. Gain” mindset that allows leaders to grow without burning out, to stay resilient even when the road ahead seems long, and to build cultures of growth that are sustainable over the long term.

      By integrating this mindset into our operational management services, we help leaders not only bridge the gaps in their business but also build on the gains they’ve made to drive lasting success.

      References

      1. Dweck, C. (2006). Mindset: The New Psychology of Success.
      2. Luthans, F., & Youssef, C. M. (2007). Positive Organizational Behavior in the Workplace: The Impact of Hope, Optimism, and Resilience.
      3. Deci, E. L., & Ryan, R. M. (2000). The “What” and “Why” of Goal Pursuits: Human Needs and the Self-Determination of Behavior.
      4. Amabile, T. M., & Kramer, S. J. (2011). The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work.
      5. Goleman, D. (1995). Emotional Intelligence: Why It Can Matter More Than IQ.

      About the Author

      Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.