Need More Funding? Not Hitting Your Numbers? How to Keep Funders on Your Side During an Operational Review.

For business leaders seeking follow-on funding or additional investment—particularly when the business is not delivering against its plan—the process can feel like a mix of urgency, opportunity, and scrutiny. Whether approaching private equity, a specialist lender, or a bank, securing funding isn’t just about demonstrating potential—it’s about reassuring funders that the business is still a viable investment. Funders will be looking beyond the financials, assessing execution capability, leadership strength, and the likelihood of a turnaround. Working with them means increased expectations, deeper operational oversight, and often, a shift in how the business is run. Knowing how to manage this process, control the narrative, and provide the right level of transparency is key to securing the support you need.

Whether it’s new funding or follow-on investment, a portfolio manager or funder’s primary goal is to support you and your business. Their preferred outcome is to see the company succeed, grow, and generate returns—not to pull funding or restructure deals. However, they also have a duty to protect their investment and manage risk—not just for their own organisation but for the businesses they back. Without a disciplined approach to investment decisions, funders wouldn’t be around for long. Understanding this balance helps set the right tone when engaging with them—they are not adversaries but stakeholders invested in your success.

An Opportunity, Not a Threat

The operational review process is an opportunity, not a threat. Even if you feel you know your business inside out, it provides a structured way to assess challenges, identify opportunities, and build a credible plan to move forward. Many leaders find that the process brings valuable clarity, even in areas they hadn’t expected. Unless there is something to hide, there is nothing to fear—in fact, it can be quite the opposite. A well-run review helps you take control of the narrative, strengthens your case for funding, and ensures that the right priorities are in focus to achieve your goals.

Similarly, an operational review is designed to support the business, not hinder it. If a funder didn’t want to continue supporting or investing, they wouldn’t commission an operational review in the first place. The fact that they are taking the time and effort to assess the business means there is still a path forward, and they want to understand how best to approach it. Rather than being seen as a hurdle, it should be viewed as a constructive process that gives you the opportunity to demonstrate leadership, reinforce confidence, and shape the future direction of the business.

A Unique Perspective

As a CEO of several businesses, I’ve raised investment in multiple scenarios—floating a company on AIM and pitching for growth capital, securing follow-on funding to scale an operation, and raising finance for a business that was struggling to perform. Each situation requires a different approach, but when a business is not delivering against its plan, the stakes are higher, the scrutiny is tougher, and the process becomes far more challenging and emotional. The conversation shifts from showcasing potential to reassuring funders that their capital is still safe, that the business can be turned around, and that leadership has a credible plan. There’s no room for complacency—understanding how funders think, what they expect, and how to manage the process is critical to keeping them on your side.

Through my work conducting operational reviews for funders, I’ve seen firsthand how they assess businesses—not just the numbers, but the execution risks, leadership capability, and operational realities that sit behind them. Unlike some advisors who approach this purely from a financial perspective, I’m an operator, not an accountant. That doesn’t mean I’m any slouch on the numbers—I know my way around a P&L, a balance sheet, and working capital as well as anyone. But it does mean that I instinctively understand what funders are really looking for beyond the spreadsheets. I know how they think, where they focus their scrutiny, and—let’s be honest—I can smell nonsense a mile off. I know where to look, what questions to ask, and when something doesn’t quite stack up.

This unique perspective—gained from working with funders while understanding the realities of running a business—provides a valuable lens for business leaders navigating follow-on funding. Funders don’t just look at the numbers; they assess execution capability, leadership strength, and operational risks. When a business isn’t performing, financials alone won’t be enough—what matters is demonstrating a clear execution plan, leadership alignment, and operational resilience. Understanding how funders think and preparing accordingly can make the difference between securing funding or being left without options.

Many business owners and CEOs assume that if the financials look solid, funding is just a formality. But funders don’t just look at the numbers—they look at execution risk. They want to know:

• Can the business deliver on its plan?
• Is management aligned, capable, and proactive?
• Where are the potential operational risks that could derail future performance?

---

The Reality of Funders’ Scrutiny

“Over the years, I’ve seen a huge range of reactions when funders start asking deeper operational questions. Some leaders take it in their stride, using it as a chance to showcase their business. Others panic, feeling like they’re under attack. I’ve had everything from a CEO sitting in on every meeting to monitor what his direct reports say, to outright deception of the facts in an attempt to present a rosier picture than reality. The truth is, the best approach is simple: be honest, be prepared, and stay in control of the narrative.”

---

Why Funders Conduct Operational Reviews and What It Means for You

Investors and lenders don’t just assess businesses based on historical financials; they want confidence in the future. That’s where operational reviews come in. These reviews go beyond financial due diligence to assess execution capability—whether the business is truly set up to deliver sustainable performance.

Why do funders require operational reviews?

• For New Investments – To validate that the business can execute its growth plans.
• For Follow-On Funding – To ensure previous capital has been used effectively and that additional funding won’t be absorbed by inefficiencies.
• For Underperforming Businesses – To diagnose whether financial struggles stem from operational weaknesses and whether leadership is equipped to fix them.

---

Funders Are Obligated to Ask Questions—It’s Not Personal

“One thing that many business leaders don’t realise is that funders aren’t looking for reasons to say no. They don’t want to catch you out. In fact, most portfolio managers are relationship-driven people—they build careers on trust and connections. But they also have internal obligations. Sometimes, it’s actually awkward for them to tell a CEO they need an independent review. If you already have a good relationship, they might even feel embarrassed about raising the issue. That’s why the best approach is to make it easy for them. Proactively addressing concerns and offering transparency can turn them from neutral assessors into advocates for your business.”

---

How Should Business Leaders React to Funders’ Scrutiny?

It’s easy to see due diligence, operational reviews, and financial audits as adversarial—like funders are looking for reasons to say no. But the reality is different. A well-prepared leader can use the process to their advantage by demonstrating control, foresight, and operational excellence.

1. Be Open, Not Defensive

If a funder wants an operational review, it’s not necessarily a sign of distrust—it’s standard practice. Avoid reacting defensively or resisting scrutiny. Instead, show that you understand their concerns and are ready to provide transparency.

2. Think Like an Investor or Lender

Put yourself in the funder’s shoes. They want predictability, risk management, and execution certainty.

Key areas funders focus on:

• Consistency in financial and operational reporting – Can you clearly show trends, performance metrics, and forecasts?
• Scalability of the business – Can the company handle growth without breaking its current systems?
• Execution capability – Are you demonstrating that your team can follow through on plans?

---

The Pros and Cons of a Financial-Only Review

Some investors and lenders opt for a financial-only review conducted by an accountant. This approach has pros and cons, depending on the situation.

Pros of a Financial-Only Review

✔ Ticks the Compliance Box – If the funder only requires a financial review, this approach is efficient.
✔ Provides Financial Accuracy – Ensures numbers are correct and compliant.
✔ Familiar Process for Management – Similar to a year-end audit, minimising disruption.
✔ Suitable for Well-Performing Businesses – If your financials are solid, this may be sufficient.

Cons of a Financial-Only Review

❌ A Narrow, Numbers-Only View – Financials don’t assess execution capability, risks, or efficiency.
❌ Primarily a Desktop Exercise – Relies on existing reports, not deeper operational insights.
❌ Funders Likely Already Have the Numbers – If they’ve already stress-tested your financials, this review adds little value.
❌ Not Enough if Funding is ‘Touch and Go’ – If you’re struggling, you need a deeper operational case.

---

Final Thoughts: Controlling the Investment Narrative

Whether you’re raising funds for growth, follow-on capital, or financial survival, the right approach can make or break the process.

✅ Treat operational reviews and due diligence as an opportunity – A chance to showcase your business strengths, not something to fear.
✅ Think like a funder – Address risks before they raise them and show that you can execute on your plans.
✅ Prepare in advance – Get your team aligned, have your financials ready, and be clear on your investment case.
✅ Stay professional and proactive – Funders invest in people as much as they do in businesses. Demonstrating leadership and confidence will go a long way.

---

Considering an Investment or Facing an Operational Review?

If you’re preparing to attract investment or follow-on funding, understanding what funders look for can help you control the narrative and secure funding faster. If you’d like to discuss how to prepare for an operational review or how to position your business effectively, get in touch today.

---

Why the Smartest MDs Bring in Professional Facilitation for Business Improvement and High-Performance Teams

Most Managing Directors are independent, decisive, and highly capable. They have built their success on strong leadership, sharp thinking, and a deep understanding of their business. So when the idea of professional facilitation for a performance improvement session comes up, a few unspoken concerns often linger:

• “What does this say about me as a leader?”
• “How will my team react to an outsider stepping in?”
• “Will this disrupt the dynamic with my leadership team?”

These are completely valid questions. But the reality is that the most effective leaders—the ones who drive real momentum, don’t try to do it all themselves. They recognise that an external perspective can unlock fresh thinking, clear roadblocks, and align their team faster than they could alone.

What This Really Says About You as a Leader

Bringing in professional facilitation isn’t an admission of weakness, it’s a strategic move. It signals that a leader is:

• Focused on results, not ego – Committed to getting the best from their team, not just maintaining the status quo.
• Proactive, not reactive – Not waiting for things to break before making improvements.
• Committed to building a high-performance team – Understanding that peak performance isn’t a one-time achievement but an ongoing process.

The best leaders see facilitation as a tool to amplify their leadership, not diminish it. Facilitation is about unlocking more from their team, not questioning authority.

The Reality of Professional Facilitation for Business Improvement

Performance improvement sessions are not about bringing in an outsider to dictate solutions. In fact, the opposite is true. The most effective facilitation helps teams uncover solutions themselves, aligning leadership and driving focus. Done well, facilitation enhances team dynamics rather than disrupts them.

The Initial Perception vs. The Reality

At the start, an MD might be wary about how professional facilitation will be received. Will the team feel defensive? Will the session feel like an audit? Will this lead to unnecessary friction?

These concerns are understandable, but they rarely materialise. What actually happens is:

1. Teams settle quickly – Within minutes of starting, people relax because they see that the process is about practical business improvement, not fault-finding.
2. Conversations open up – Issues that have been lurking in the background suddenly become safe to discuss.
3. Leaders engage more effectively – Rather than a top-down session, it becomes a collaborative problem-solving exercise focused on high-performance outcomes.

Having worked across multiple industries, particularly with private equity-backed businesses, I have learned that successful facilitation is not just about process. It is about making people comfortable, creating a dynamic that encourages honest dialogue, and ensuring that leadership remains in control while benefiting from fresh perspectives.

Data and Research Insights on Professional Facilitation

Studies have shown that companies engaging in structured facilitation sessions experience significant improvements in key business metrics:

• 25% improvement in leadership alignment and strategic execution.
• 30% faster decision-making processes compared to teams that rely solely on internal discussions.
• Significant increases in employee engagement and productivity, with facilitated teams reporting clearer roles and better collaboration.

These figures highlight the tangible business value of facilitation, making it not just a leadership exercise but a strategic advantage.

Rethinking Strategy: It’s Simpler Than You Think

For many business leaders, the word “strategy” conjures images of grand strategic plans, long-term visions, and complex frameworks. But at its core, strategy is much simpler than that.

• Strategy is simply the path from A to B.
• It’s how a business solves challenges and improves performance.
• It’s about making the right choices to get better results.

For example, if a company wants to improve sales performance, the real question is: What’s our strategy to do that? It’s not about producing a 50-page document, it’s about defining the most effective way forward.

This is where professional facilitation makes a difference. It helps leadership teams cut through complexity, focus on what matters, and align around a clear, actionable strategy that drives real progress.

Ditching Outdated Planning Models—Strategy Needs to Be Practical

Many business leaders have been conditioned to think that strategy sessions must follow rigid academic frameworks, like the SWOT analysis, which has been around for decades. But let’s be honest: if a leadership team needs a facilitator just to list its strengths, weaknesses, opportunities, and threats, there are deeper issues at play.

Strategy is about action, not box-ticking exercises. Business moves too fast for abstract, theoretical models that look good in textbooks but don’t drive real decisions. A professional facilitator doesn’t waste time on outdated templates, they help teams focus on what actually matters:

• What problem are we solving?
• Where do we need to improve?
• What’s stopping us from making progress?
• What’s the most effective way forward?

The best facilitation is practical, sharp, and focused on execution. It’s about defining real priorities, making decisions, and ensuring that teams leave the room with clear actions, not just a pile of sticky notes and another set of theoretical insights that never get used.

Case Study: Aligning a Leadership Team Around a Joint Mission

A strong example of the impact of professional facilitation can be seen in this case study. A leadership team struggled with misalignment on strategic direction, causing inefficiencies and lack of progress. Through a structured facilitation approach, the session provided clarity, strengthened collaboration, and created a unified mission. The result? A leadership team that was fully engaged, clear on objectives, and committed to driving business improvement as a cohesive unit.

What Business Leaders Say About Professional Facilitation

Mike Linter, Global Head of Tax and Legal Services UK and Vice Chair – KPMG UK, shares his experience:

“My team consists of some very bright, highly intelligent individuals, but I was struggling to get them all focused upon a joint mission. I had seen some of the results which Trev was achieving in similar businesses and so approached him. He ran several team events for me over six months, focusing my team’s minds on our mission, attending regular performance reviews and strategy sessions. We had great success with this approach and resulted in a much more aligned and accountable leadership team with clear KPIs. Critically this resulted in a significant profit improvement across the participating business units. If you want to get your team focused upon a joint mission, I highly recommend you consider using Trev to support you.”

Common Pitfalls in DIY Facilitation

Many leadership teams attempt to facilitate their own performance discussions but often struggle to achieve real change. The most common pitfalls include:

• Entrenched perspectives and internal biases. Teams may avoid uncomfortable topics or reinforce existing viewpoints rather than exploring new solutions.
• Dominant voices overshadowing others. Strong personalities can steer discussions in unproductive directions, preventing balanced contributions from all team members.
• Lack of structured follow-through. Without an independent facilitator, meetings can turn into endless discussions without clear action steps or accountability.

A professional facilitator ensures objectivity, manages team dynamics, and keeps the discussion focused on actionable outcomes.

FAQs: Addressing Common Concerns About Professional Facilitation

“I’m not sure how my team will see this.”
Change can create uncertainty, but a well-structured approach ensures teams feel engaged rather than dictated to. Discussions should be facilitated in a way that respects existing dynamics while driving alignment and action. Most teams find the process refreshing and productive within the first session.

“How will my FD view this expense?”
An FD is focused on ROI. Facilitation is not just a cost, it is an investment in business improvement, efficiency, and decision-making. A structured approach delivers measurable impact, ensuring that the session pays for itself through improved clarity, execution, and even cost savings.

“We should be able to fix this ourselves.”
Even the best leadership teams benefit from an outside perspective. A structured facilitation session helps cut through internal politics, decision fatigue, and circular discussions, allowing leadership to move forward with confidence and clarity.

What Happens Next?

Most MDs who bring in professional facilitation see the immediate benefit: clearer alignment, faster decision-making, and renewed energy within the leadership team. The best part? The effect lasts. The team walks away with clarity, ownership, and the momentum to keep driving forward.

Bringing in a facilitator is about accelerating business improvement. It is about getting a leadership team on the same page, removing friction, and driving tangible results to build high-performance teams.

So, the real question is, if a fellow MD swears by professional facilitation, what might I be missing?

Leading Through Uncertainty: The Power of Relaxed Intensity

Times are tough for UK PLC right now, and many business leaders find themselves on the front lines of a relentless battle against economic pressure, negativity, and stress. As a professional Interim who specialises in stressed and distressed businesses, I thought I’d share some insights on how I cope and, more importantly, how leaders can maintain their effectiveness under intense strain.

As business leaders, we are constantly buffeted by external forces, market shifts, financial pressures, regulatory changes, and social uncertainties, that inevitably impact performance. Maintaining a positive mindset isn’t just a personal luxury; it’s a fundamental necessity for business success. And yet, despite the all-time high in mental health challenges, social media is flooded with advice from influencers about how an ice bath or a change in perspective will solve everything. They may not be entirely wrong, different things work for different people, but as Mike Tyson famously put it: “Everyone has a plan until they get punched in the mouth.”

Now, to be fair, the ice bath might help with the swelling after the punch, but it won’t teach you how to respond, adjust your stance, or recover from the blow. That’s where you come in, knowing how to manage the impact of setbacks and respond effectively under pressure.

Having experienced both combat situations and leading businesses through distress, I think that statement perfectly encapsulates what it feels like to be in the midst of a crisis. The real test isn’t what we plan to do—it’s how we conductourselves when reality hits.

The Leader’s Conduct: The Power of Presence

One of the most critical aspects of leadership in tough times is how we present ourselves to our teams. No one wants to follow a captain who panics at the first sight of trouble, runs around in a frenzy, or, even worse, abandons ship when the waters get rough. Stability, confidence, and clarity from the top set the tone for the entire organisation.

An old boss once told me that I led teams with “Relaxed Intensity.” I spent a lot of time thinking about what that meant. Over time, I realised it was the combination of three leadership principles that have guided me throughout my career:

Embrace VUCA: Living with Uncertainty

The world is volatile, uncertain, complex, and ambiguous – VUCA, as the military defines it. Accepting this reality is the first step to overcoming it. There is no perfect roadmap, but there are ways to navigate through it effectively. The best leaders don’t get paralysed by change; they expect it, prepare for it, and stay adaptable.

During the 2008 financial crisis, I led one of the first CVAs of a public company in 2009. Businesses were collapsing under the weight of economic downturns, and traditional restructuring methods were failing. Steering the company through this period required not just financial restructuring but also a shift in mindset, embracing uncertainty, making hard decisions, and ensuring the team remained focused amid chaos. The ability to embrace VUCA and adapt to unprecedented challenges was the difference between survival and failure.

Though it was one of the toughest experiences of my career, it ultimately set the stage for my transition into professional interim leadership. Navigating that crisis gave me invaluable experience in managing high-stakes turnarounds, resilience under pressure, and the ability to lead teams through extreme adversity. That defining moment opened up my career as a specialist in distressed businesses, shaping the work I do today.

Mission Focused: Aligning People with Purpose

Success doesn’t happen by accident. Organisations only thrive when the right people, individually and collectively, focus on the right things at the right time. I work on the principle that if I need clarity of purpose, so does my team. Whether they love it or hate it, as a leader, I ensure that everyone is clear on what we are trying to achieve and why it matters.

In that same CVA process, we had to maintain morale and ensure employees were still performing despite uncertainty about their futures. The only way to do this was through absolute clarity on the mission—what we needed to achieve to secure survival and what each person’s role was in that process. It wasn’t about empty motivation; it was about ensuring people knew why their efforts mattered.

Systems Thinking: Understanding the Interdependencies

Everything needs something else to survive. If sales are down, what’s stifling them? If customer complaints are high, what’s keeping them alive? A systems thinker understands that nothing operates in isolation, everything needs something else to survive. A leader who adopts this mindset can untangle complexity, identify root causes, and create simplicity out of chaos.

In that same turnaround effort, I had to look beyond just financial figures and understand the operational systems at play. Cash flow was tight, but what was exacerbating the issue? Supplier relationships, credit terms, customer confidence, all of these elements were intertwined. Fixing the problem meant addressing not just cost-cutting but also ensuring supply chains remained intact, confidence was restored, and operations were streamlined to keep the company moving. By applying systems thinking, we didn’t just put out fires; we built resilience into the organisation.

The Path Forward

The reality of business leadership today is that uncertainty is a given. Economic pressures will persist, competition will remain fierce, and unforeseen challenges will arise. The question isn’t if adversity will come; it’s how you’ll respond when it does.

Relaxed Intensity is about maintaining a composed, strategic mindset while driving relentless execution. It’s about staying mission-focused, embracing the chaos of VUCA, and thinking in systems rather than silos. It’s about being the leader your team can trust to steer the ship – no matter how rough the waters become.

Ask yourself:

• How well do you handle uncertainty in your leadership?
• Is your team mission-focused, or are they distracted by the noise?
• Are you thinking in systems, or are you reacting to problems in isolation?

Adopt these principles, and you won’t just survive—you’ll thrive.

A 20th Century Problem with a 19th Century Solution

The difficulty of executing strategy is well-documented and widespread. Research indicates that a significant number of organisations struggle to translate strategy into action. A study found that 67% of well-formulated strategies fail due to poor execution (ClearPoint Strategy). Even when businesses develop robust strategic plans, the majority falter at the implementation stage.

Even more striking is that this problem has endured for decades. Walk into most boardrooms today, and the conversations about execution remain remarkably similar to those held 20 years ago. While management approaches have evolved, many organisations still wrestle with the same fundamental challenge: bridging the gap between strategy and execution.

A problem that is both widespread and persistent suggests deep-seated causes. The solution, therefore, must be equally fundamental. Surprisingly, it is. The answer has existed for a long time. It is relatively simple—almost common sense. Yet, as is often the case, common sense is not the same as common practice.

This naturally leads to another question: If the solution has been around for so long and is easy to understand, why isn’t it widely adopted?

There are two main reasons:

1. The legacy of outdated management thinking
   20th-century management principles have built barriers to adopting more effective approaches. Even though modern thinkers have challenged these principles, their influence remains embedded in organisational structures.
2. A lack of a widely accepted alternative
   While frameworks such as Agile, Lean, and OKRs have emerged, no single methodology has replaced traditional management practices across the board. Many managers acknowledge the limitations of legacy models but struggle to consistently implement better approaches.

The Legacy of Scientific Management

During the industrial revolution, businesses were structured around factories that operated like machines. Workers were treated as cogs in those machines, and management’s role was to keep everything running smoothly.

In 1911, Frederick Winslow Taylor’s The Principles of Scientific Management formalised this mindset. His approach was built on three core premises:

1. It is possible to know everything needed in advance to plan effectively.
2. Planners and doers should be separate.
3. There is one correct way to perform a task.

Taylor’s principles revolutionised efficiency in repetitive, mechanical tasks. By studying physical labour in minute detail—such as the optimal way to move pig iron onto railcars—he developed systems that dramatically improved productivity. Today, many of these tasks are automated or standardised in software.

However, businesses also require activities that involve judgement, creativity, and adaptation—areas where Taylor’s assumptions break down. The more dynamic the environment, the less useful rigid, top-down control becomes.

Taylorism has faced substantial criticism in modern management. One of the major critiques is that Taylorism dehumanises workers by treating them as components of a machine, focusing solely on efficiency at the expense of autonomy and satisfaction (Runn.io). This approach leads to disengagement and lack of motivation—factors that are counterproductive in today’s dynamic work environments.

Additionally, Taylorist structures are often ill-suited to complex modern organisations. The emphasis on standardisation and control can stifle innovation and responsiveness, both of which are critical in fast-paced markets. Despite the rejection of Taylorist ideas in theory, some businesses inadvertently reinforce them through rigid performance management systems, compliance pressures, and hierarchical planning.

The 19th Century Solution: Leadership Based on Alignment and Autonomy

This brings us to the second reason strategy execution remains such a challenge: organisations lack a widely adopted set of management disciplines suited to today’s complex and unpredictable environment.

However, a highly effective alternative has existed for over a century—long before Taylor’s mechanistic model took hold.

Field Marshal Helmuth von Moltke, a 19th-century Prussian general, faced a challenge remarkably similar to modern leadership: how to execute strategy in a fast-changing, unpredictable environment. He recognised that traditional, top-down control fails when agility is required. Instead, he developed a leadership philosophy based on alignment and autonomy.

Von Moltke’s insight was simple yet profound: The more alignment you create, the more autonomy you can grant. This shifts execution away from reliance on an exceptional leader and instead builds an organisation capable of intelligent, adaptive decision-making at all levels.

Many modern management frameworks, including Agile and decentralised decision-making models, share parallels with von Moltke’s approach. However, despite their proven effectiveness, many organisations struggle to integrate these principles into their core operating models.

Rather than relying on rigid control structures, the most effective organisations today behave more like adaptive systems. They empower individuals with clear intent, ensuring that teams have both the context and the authority to act decisively in uncertain environments.

The solution has always been there. The challenge is adopting it.

---

Soichiro Honda – Lessons from a Master Innovator

We’ve all seen the famous logo, and we’ve all encountered Honda’s products at some point—be it their reliable cars like the Civic and Accord, their iconic motorcycles like the Super Cub and Fireblade, or even their powerful generators and lawnmowers. Honda is everywhere, a brand synonymous with quality and innovation.

But how much do we know about the man behind the name? Soichiro Honda’s story is one of grit, resilience, and visionary leadership. From humble beginnings in Japan to building a global empire, Honda’s journey is packed with lessons that inspire not just admiration but actionable insights for leaders today.

What makes his story even more remarkable is how he turned failures into opportunities and setbacks into springboards for success. His ability to connect visionary thinking with pragmatic execution sets an example for business leaders in any industry.

---

The Humble Beginnings of a Visionary

Born in 1906 in a small Japanese village, Soichiro Honda showed an early fascination with mechanics. He would spend hours watching vehicles and tinkering with mechanical parts. As a teenager, he began working as an apprentice at an automotive garage, where he honed his skills and developed a passion for engineering.

Despite his humble background, Honda’s ambition and curiosity were boundless. This determination to succeed would become a defining feature of his life.

In the 1930s, Honda founded his first company, Tokai Seiki, to manufacture piston rings. His initial designs were rejected by Toyota, but instead of giving up, he returned to school to refine his engineering knowledge. This early setback laid the foundation for his eventual success.

---

Turning Failures into Stepping Stones

Honda’s life is a testament to the idea that failure is not the end but a step on the path to success. After refining his piston ring designs, he eventually became a supplier for Toyota. Yet, his challenges didn’t stop there.

During World War II, Honda’s factory was bombed twice, and an earthquake further destroyed his facilities. Faced with devastation, Honda pivoted. He salvaged materials and began producing motorised bicycles to meet Japan’s post-war need for affordable transportation.

This resilience in the face of adversity allowed Honda to build a business that addressed immediate market needs and set the stage for future innovation.

Leadership Lesson: Failures don’t define you—your response to them does. Leaders who embrace challenges and use them as opportunities to learn and adapt often emerge stronger and better prepared for future obstacles.

---

Relentless Innovation as a Core Value

Honda’s relentless pursuit of innovation became the cornerstone of his company’s success. He constantly sought to push technological boundaries, challenging his team to think beyond the status quo.

In 1958, Honda launched the Super Cub motorcycle, an affordable and reliable vehicle that became an instant success. With over 100 million units sold worldwide, the Super Cub remains the best-selling vehicle of all time. This success was followed by groundbreaking advancements, such as the CVCC engine in the 1970s, which met stringent emissions standards without requiring a catalytic converter.

Honda’s philosophy, encapsulated in his statement, “Success is 99% failure,” drove the company to continuously improve and innovate.

Leadership Lesson: Innovation isn’t a one-time effort—it’s a mindset. Leaders who embed continuous improvement into their organisations ensure long-term relevance and competitiveness.

---

Align Strategy with Market Needs

One of Honda’s greatest strengths was his ability to anticipate and respond to market trends. In post-war Japan, he identified the urgent need for affordable transport and developed motorised bicycles that met this demand.

As Honda Motor Company expanded globally, he continued to adapt. In the United States, the introduction of fuel-efficient cars like the Honda Civic and Accord aligned with the growing demand for economical and environmentally conscious vehicles. This ability to pivot and tailor products to specific markets ensured Honda’s sustained growth.

Leadership Lesson: Stay close to your customers. By understanding their needs and adapting to market conditions, leaders can ensure their organisations remain relevant and competitive.

---

Building a Team of Innovators

Honda believed that great ideas come from collaboration. He fostered a company culture that valued creativity, experimentation, and open communication. His engineers were encouraged to take risks, knowing that failure was a natural part of the innovation process.

This empowerment not only drove innovation but also created loyalty and dedication within his workforce. Honda’s leadership style exemplifies the importance of trust and collaboration in achieving extraordinary results.

Leadership Lesson: Empowered teams drive performance and innovation. Leaders who create environments where employees feel trusted and valued unlock the full potential of their organisations.

---

Balancing Vision with Pragmatism

While Honda was a visionary, he never lost sight of practical realities. He paired bold ideas with disciplined execution, ensuring that the company’s growth was both sustainable and scalable.

For example, Honda invested heavily in cutting-edge manufacturing techniques to maintain quality as demand grew. This balance of ambition and operational excellence became a hallmark of the company’s success.

Leadership Lesson: Visionary leaders must pair bold ideas with practical execution. Long-term success comes from balancing innovation with efficient operations.

---

Lessons for Leaders

Soichiro Honda’s journey is a powerful reminder that leadership is about more than achieving success—it’s about how you respond to challenges, inspire innovation, and create a lasting legacy.

Here are three actionable lessons for leaders:

1. Turn Failures into Opportunities: Failures are stepping stones for growth. Embrace challenges as opportunities to learn and build resilience.
2. Foster a Culture of Innovation: Bold thinking and continuous improvement ensure relevance and success. Empower your team to experiment and challenge the status quo.
3. Align Strategy with Market Needs: Stay close to your customers and adapt to their evolving expectations. Tailored solutions create loyalty and maintain competitiveness.

By applying these principles, leaders can overcome challenges and position their organisations for lasting success.

---

Further Reading

To dive deeper into the concepts explored in this article, check out the following guides:

• Building Resilience: Thriving Under Pressure
  Learn strategies to embrace failure, adapt to challenges, and lead your team with confidence through adversity.
• Driving Innovation: Staying Ahead of the Curve
  Explore how to foster a culture of innovation that propels your organisation forward in a competitive market.
• Adapting to Customer Needs: Creating Value During a Downturn
  Discover how to anticipate customer needs, deliver relevant solutions, and maintain loyalty in changing markets.

---

What challenges or opportunities could you address differently by applying Honda’s principles?

Prepare to move,
Trevor

#LeadershipLessons #Resilience #Innovation #TeamEmpowerment #Adaptability #SoichiroHonda #BusinessLeadership #TurningFailureIntoSuccess #MarketInsight #TeamCollaboration

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.

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.

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.

• Check out some case studies of other assignments

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.

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.

We’ve all heard (or even said) it before: “I always give 110%!” That’s The 110% Myth. This familiar phrase might sound motivational, but it’s fundamentally flawed. You can’t give more than 100%, and most of us don’t even have that to spare once life’s other demands are factored in. So, let’s dive into a more sustainable truth: if you’ve only got 20% energy left for work, give it your best shot—100% of your 20%.

In today’s hustle culture, there’s immense pressure to burn the candle at both ends. Yet research shows that pushing beyond reasonable limits only leads to burnout, poor productivity, and frustration. As a leader, recognising this can be a game-changer. Instead of squeezing every last ounce of energy from your team, focus on creating an environment that values well-being and real results. Empower your team to work smartly within their limits, fostering both productivity and job satisfaction.

With trials of a four-day week showing promising results, there’s a real chance to rethink productivity metrics. Instead of hours clocked in, let’s focus on outcomes, quality, and impact. This approach not only aligns with evolving work-life expectations but could make adjusting to shorter workweeks far smoother. Embracing this shift may even future-proof your organisation, paving the way for happier, more engaged employees—and better results.

The Beauty of Realistic Expectations

We live in a world where hustle culture is glorified. There’s this idea that if you’re not burning the candle at both ends, you’re not doing enough. But let’s get real. Pushing yourself to give 110% doesn’t just defy logic; it’s unsustainable. It sets you up for burnout, exhaustion, and ultimately, disappointment when you inevitably can’t meet such impossible standards.

In fact, research shows that working excessively long hours can actually decrease productivity. A study by Stanford University found that productivity per hour declines sharply when a person works more than 50 hours a week. Beyond 55 hours, productivity drops so much that putting in any more hours is practically pointless. Meanwhile, those working 70 hours a week achieved little more than those working 55.

Instead, what if you focused on making the most out of the energy you do have? Imagine being fully present and engaged with the 20% you allocate to your work. That’s not just effective; it’s sustainable. It allows you to be your best self, not just at work but in all areas of your life.

Leading with Empathy and Realism

Now, let’s flip the script. As a leader, this is where you come in. Recognising that your team members have lives outside of work is key to fostering a healthy, productive environment. Perhaps since lockdown and the phenomena of T.W.A.T.s (Tuesdays, Wednesdays, and Thursdays in the office), we need to adjust our leadership style and approach to better reflect what was always true: life doesn’t neatly compartmentalise itself into work and personal time.

In fact, with the UK government seriously considering the implementation of a four-day working week—something that will surely spill over into the private sector—we’re witnessing a broader shift in how we view productivity and work-life balance. Trials of the four-day week across the UK have been promising.

One of the largest trials involving 61 companies found that 92% of participating organisations opted to continue with the four-day week after the trial period ended. Not only did employee well-being improve, but company revenues remained steady or even increased for many businesses.

This shift acknowledges what we’ve always known deep down: more hours at work don’t necessarily mean more output. If anything, they might mean less.

Balancing the Debate: The Other Side of the Coin

While the idea of a four-day workweek has garnered much support, it’s important to consider some counterarguments to this trend. Critics often point out that reducing work hours might not be suitable for all industries, particularly those that rely on continuous operations like healthcare or manufacturing. There’s concern that a shorter workweek could lead to increased costs if businesses need to hire more staff or pay overtime to cover reduced hours.

Furthermore, some argue that mandating a four-day week could limit the flexibility businesses need to operate effectively. In a globalised economy, where companies often compete with others in countries with longer work hours, reducing the workweek might put them at a disadvantage. Additionally, not all employees may benefit equally—those eager for career advancement might find fewer opportunities for growth with reduced work hours, impacting their long-term development.

It’s crucial to weigh these perspectives when considering changes to work policies. A one-size-fits-all approach may not work for every business or individual, and flexibility could be key to finding the right balance.

Practical Application: Making the Most of Your Energy

Applying the concept of giving “100% of your 20%” is both realistic and empowering. Here’s how you can start integrating it into your work and personal life:

• Identify Your High-Impact Tasks: Spend a few minutes each morning to pinpoint the 20% of tasks that will yield the most significant results for your day. Aim to give these your focused attention, tackling them during your peak energy times.
• Set Boundaries and Breaks: Recognise that to be effective, you need moments to recharge. Schedule breaks and set clear boundaries around your work hours, even if it’s as simple as blocking out 10-minute “pause” slots in your calendar.
• Use Outcome-Based Goals: Instead of focusing on how much time you’ll spend on a task, set goals based on outcomes. For example, “finish project proposal draft” instead of “work on project for two hours.” This will help you prioritise quality over quantity.
• Align Work with Personal Life: Since energy is finite, balance your work by integrating it with personal commitments. Plan your week to include time for family, health, and hobbies to ensure that work doesn’t dominate your energy reserves.
• Regularly Assess and Adjust: At the end of each week, reflect on what worked well and what didn’t. Did you meet your outcome-based goals? Did you find yourself low on energy at certain times? Adjust your approach as needed to improve week by week.

Trends and Future Outlook: A New Era of Productivity

We’re witnessing a shift in how productivity is defined and measured, with trends suggesting that traditional “more hours equals more output” thinking is giving way to quality-focused, balanced approaches. Here are some developments likely to shape the future:

• Outcome-Based Performance Metrics: Companies are moving from time-based measures to outcome-based metrics, focusing on the value of what’s accomplished rather than the hours spent. This shift aligns with the evolving workplace, where flexibility and results matter more than rigid hours.
• Rise of the Four-Day Workweek: Trials across various industries suggest the four-day workweek could become a new standard. As more companies report stable or increased productivity with this structure, it’s increasingly likely that reduced hours, balanced with high-impact work, will become commonplace.
• Well-Being as a Core Metric: Companies are increasingly recognising employee well-being as integral to productivity. Businesses that prioritise mental health, offer flexible work options, and encourage manageable workloads are attracting and retaining talent, setting a new standard for sustainable work.
• Increased Automation and AI: As automation takes over more repetitive tasks, employees can focus their energy on high-level work requiring critical thinking, creativity, and interpersonal skills. AI tools may even support work-life balance by automating workflows and providing insights into energy-efficient scheduling.
• Flexibility and Hybrid Work Models: With remote work here to stay, organisations are exploring hybrid models and personalising work schedules to match individual productivity patterns. This flexibility enables employees to align work with their energy rhythms, fostering a more balanced approach to output and engagement.

Supporting Insights

1. Stanford University Study on Productivity: John Pencavel’s research shows productivity per hour sharply declines beyond 50 hours of work weekly, emphasising diminishing returns from excessive hours.
2. The Pareto Principle: Richard Koch’s “The 80/20 Principle” explores how 80% of outcomes come from 20% of efforts, a valuable framework for prioritising high-impact tasks.
3. UK Four-Day Workweek Trials: Research from Autonomy and 4 Day Week UK Campaign showed 92% of companies maintained the four-day work model after trial, seeing improved well-being and steady or increased revenue.
4. Work-Life Balance and Job Satisfaction: Research published in Journal of Happiness Studies links balanced workloads to productivity and organisational commitment.
5. Outcome-Based Performance Metrics: As detailed by Harvard Business Review, measuring results rather than hours allows flexibility, aligning with modern productivity needs.

These insights build a case for prioritising well-being, smart energy management, and a focus on outcomes over excessive hours. Embracing these shifts could foster happier, more productive workplaces and sustainable career growth.

---

Enjoy your weekend, and remember: it’s all about working smart, not hard. And maybe, just maybe, start using that 110% energy to plan your next holiday instead.

---

References:

• “Working hours and productivity.” The Economist. Available at: The Economist
• “Four-day working week: majority of UK firms in trial extend changes.” The Guardian. Available at: The Guardian

Counterarguments:

• “The Four-Day Week: A Potential Pitfall for Business?” Forbes. Available at: Forbes
• “Productivity and Working Hours: The Case for Caution.” Harvard Business Review. Available at: Harvard Business Review
• “The Economic Impact of a Four-Day Work Week.” Financial Times. Available at: Financial Times

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.