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A 20th Century Problem with a 19th Century Solution

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 The legacy of outdated management thinking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

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

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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      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.

      shutterstock

      The 110% Myth – and the power of 20%

      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.

      Jim Baker

      Systems Over Willpower

      A Paradigm Shift in Business Management

      Introduction:

      As a professional interim, I firmly believe in applying basic business principles during interim assignments.

      During a recent assignment for a family office that had recently acquired the business I was assigned to, I encountered a profound insight that reinforced this perspective.

      As we discussed how previous ownership had mistreated the business, causing its decline and subsequent sale, the family office owner shared an analogy that struck a chord with me. He said, “I see a business like a person. You wouldn’t mistreat a person; you would treat it respectfully and do the right thing by it.” This simple yet powerful analogy eloquently describes the basic building blocks for my interim leadership approach to the interim stewardship of businesses, especially those under stress.

      Understanding the Business as a Person

      Of course, the starting point of a fair proportion of my assignments involves generating positive cash flow through cost control and sales, without which they would not be able to survive without ever-greater levels of debt.

      However, following this initial phase, a good interim will migrate into a stabilisation phase and prepare to hand over to more permanent leadership.

      At this point, viewing a business as a living entity rather than a mere economic construct and shifting the focus from purely transactional management to a more holistic, empathetic approach has merit.

      Like individuals, businesses have needs, potential, and vulnerabilities. They thrive when nurtured and falter when neglected. This perspective encourages us to consider a business’s emotional and psychological well-being, fostering a culture of respect and care.

      Ultimately, I am an interim leader, and applying this style is undoubtedly better for the long-term good of the business and especially important for the benefit of any long-term leader who will ultimately inherit the fruits of my labour. So, let’s run with it.

      The Consequences of Neglect

      As a professional interim, many businesses I get involved with exhibit signs of neglect akin to those of a mistreated person. These signs include:

      Erosion of Core Values: Just as a person might lose their sense of self-worth when mistreated, a business can stray from its core values and mission. This misalignment often leads to a loss of identity and purpose.

      Demotivated Workforce: Employees are the lifeblood of any business. When a business is not treated with respect, it often manifests in poor employee morale and high turnover. Sensing the lack of respect and care, employees become disengaged, further exacerbating the business’s problems.

      Customer Dissatisfaction: A neglected business fails to serve its customers effectively. Just as a person in distress might struggle to maintain relationships, a business under stress will find it challenging to meet customer expectations, leading to dissatisfaction and loss of loyalty.

      Financial Strain: Financial health reflects the overall well-being of a business. Chronic neglect often results in mismanaged finances, leading to cash flow problems, mounting debts, and, ultimately, the risk of insolvency.

      1.  

      The Path to Rehabilitation

      Addressing the issues of a stressed business requires a comprehensive, empathetic approach akin to rehabilitating a person in distress. Here are some strategies to consider:

        1. Stabilise the business: It is vital that the business is stabilised and control is gained, or at the very least the negative activities are stopped and more postive actions are put in place to stop the business from sliding into more debt or even insolvency. Get the basics right as quickly as possible. 
        2. Rediscover Core Values: Reconnecting with the business’s founding principles and mission can reignite its sense of purpose. This process involves engaging with all stakeholders to reaffirm what the business stands for and where it aims to go.

        1. Foster a Positive Culture: Creating a respectful and inclusive workplace culture is crucial. This includes recognising and rewarding employee contributions, promoting open communication, and ensuring that the work environment is supportive and nurturing.

        1. Engage with Customers: Building strong relationships with customers based on trust and respect can significantly improve a business’s standing. Regular feedback and transparent communication can help in understanding and meeting customer needs more effectively.

        1. Financial Health Check: Conducting a thorough financial review to identify and address underlying issues is essential. This might involve restructuring debts, optimising operations, and ensuring robust financial planning and control mechanisms are in place.

        1. Leadership with Empathy: Leadership plays a critical role in the rehabilitation of a business. Leaders who areempathetic, transparent, and visionary can inspire and drive positive change. They must lead by example, showing respect and care in every decision and action.

      Conclusion

      For a professional interim, recognising when to switch from a transactional approach to a longer-term approach is a judgment call. The analogy of treating a business like a person is not just a poetic notion but a practical guide to fostering healthier, more resilient organisations. By recognising and addressing the needs of a business with the same care and respect we would afford a person, we can create environments where businesses thrive. This approach not only mitigates stress and conflict but also paves the way for sustainable growth and success. As stewards of companies, albeit interim, we are responsible for nurturing them with the respect and care they deserve, ensuring they are well-positioned to achieve their full potential under longer-term leadership.

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      Hert

      Developing a “Tip of the Spear” Approach to HR Leadership.

      Developing a “Tip of the Spear” Approach to Business

      In business, the term “tip of the spear” is a metaphor borrowed from military jargon. It refers to the leading edge of a military operation, the first and most critical element in an assault. It also implies those operating at the front are taking on the most risk and facing the most danger.

      In the business context, it signifies the forefront of an initiative, the most advanced and crucial part of a company’s efforts to achieve a strategic objective. Similarly, they are open to the most scrutiny because their efforts, good and bad, almost immediately affect the business.

      Recruiting and Developing ‘tip of the spear’ operational leaders is paramount for organisations aiming to maintain a competitive edge and drive impactful results. These individuals are not only the pioneers in operational execution but also catalysts for transformation and innovation.

      At NorthCo, we specialise in recruiting operational management, those at “the tip of the spear.”  

      It’s a “State of Mind”

      The “tip of the spear” mindset is more than a set of actions or strategies; in a former life, we would say “it’s a state of mind”.

      Operationally focused ‘tip of the spear’ leaders are defined by their operationally oriented approach, proactive nature, strategic insight, and ability to execute critical operational tasks. They can foresee market trends, identify opportunities, and implement strategies with precision. These leaders are adept at navigating through complexities, making swift decisions, and driving initiatives that propel the organisation forward.

      In short, they are experts in “getting stuff done.”

      The Role of ‘Tip of the Spear’ Leaders at All Levels

      It is a common misconception that ‘tip of the spear’ roles are reserved solely for senior executives or those in top-tier management positions. In reality, these qualities are just as essential at all levels of management. Whether it’s a team leader, a mid-level manager, or a department head, having ‘tip of the spear’ individuals throughout the hierarchy ensures that the organisation remains agile, innovative, and resilient from top to bottom.

      Junior Management

      At the junior management level, ‘tip of the spear’ individuals are those who consistently push boundaries and drive their teams to exceed expectations. These leaders:

      • Initiate Improvements:
        • Proactively identify inefficiencies and propose solutions to streamline processes.
        • Lead by example, encouraging team members to adopt a mindset of continuous improvement.
      • Motivate and Mentor:
        • Inspire their team with a clear vision and tangible goals, fostering a culture of high performance.
        • Act as mentors, developing the skills and potential of their team members.
      • Operational Excellence:
        • Ensure that daily operations are executed with precision and attention to detail.
        • Use their tactical expertise to troubleshoot issues swiftly, maintaining smooth workflows.

      Mid-Level Management

      Mid-level managers who are ‘tip of the spear’ are pivotal in bridging strategic goals with operational execution. These leaders:

      • Drive Strategic Initiatives:
        • Translate high-level strategies into actionable plans for their teams.
        • Monitor progress and adjust tactics to stay aligned with organisational objectives.
      • Foster Innovation:
        • Encourage a culture of creativity and experimentation within their departments.
        • Recognise and reward innovative ideas and initiatives that contribute to the company’s growth.
      • Enhance Cross-Functional Collaboration:
        • Facilitate collaboration across different teams and departments to achieve cohesive and unified outcomes.
        • Resolve conflicts and align diverse efforts towards common goals.

      Senior Management

      Senior management ‘tip of the spear’ leaders are visionary strategists who shape the company’s direction and inspire the entire organisation. These leaders:

      • Set the Vision:
        • Define the long-term vision and strategic direction of the company.
        • Communicate this vision effectively, ensuring all levels of the organisation are aligned and motivated.
      • Lead Transformational Change:
        • Spearhead transformational initiatives that drive significant business growth and innovation.
        • Navigate complex challenges and guide the organisation through periods of change and uncertainty.
      • Build High-Performing Cultures:
        • Establish a culture of excellence, accountability, and continuous improvement.
        • Foster an environment where employees feel empowered, valued, and motivated to contribute their best work.

      Crafting a Role Profile Using the MOST Format

      Creating a clear and effective role profile is pivotal for ensuring alignment and productivity within an organisation. I use the MOST format, which comprises Mission, Objectives, Strategy, and Tasks and provides a structured and comprehensive approach to defining roles, enhancing clarity, and setting actionable goals.

      Mission

      Definition: The mission defines the core purpose and overarching aim of the role. It encapsulates the essence of what the role seeks to achieve in alignment with the organisation’s vision and values.

      Importance: A well-articulated mission statement serves as the guiding star for the role, offering direction and inspiration. It helps the incumbent understand their primary purpose within the organisational ecosystem.

      Example: “To lead the digital transformation initiatives, enhancing operational efficiency and driving innovation across all departments.”

      Objectives

      Definition: Objectives are specific, measurable goals that the role aims to achieve. They should be aligned with the mission and contribute directly to the broader organisational goals.

      Importance: Objectives provide clear targets for performance and success. They enable the incumbent to focus their efforts on critical outcomes and facilitate performance assessment.

      SMART Criteria: Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound.

      Example:

      • Increase online customer engagement by 20% within the next 12 months.
      • Reduce operational costs by 15% over the next fiscal year through digital automation.

      Strategy

      Definition: Strategy outlines the plan and approach the role will take to achieve the set objectives. It includes the methods, processes, and tools that will be employed.

      Importance: A well-defined strategy ensures that there is a coherent and practical plan in place to meet the objectives. It helps in identifying the most effective pathways and resources needed to achieve the desired outcomes.

      Example:

      • Implement a new CRM system to streamline customer interactions and improve data analytics.
      • Develop and launch a comprehensive digital marketing campaign to boost brand awareness and customer acquisition.

      Tasks 

      Tasks are the specific actions and activities that need to be performed to execute the strategy and achieve the objectives.They are the day-to-day responsibilities associated with the role.

      Importance: Clearly defined tasks ensure that the incumbent knows exactly what is expected of them on a daily basis. They provide a concrete roadmap for action and help prioritise workload.

      Example:

      • Conduct weekly meetings with the digital marketing team to review progress and optimise strategies.
      • Analyse customer feedback and data to refine digital transformation initiatives.
      • Collaborate with IT and operations to identify and implement automation opportunities.

      Benefits of Using the MOST Format

      Clarity and Focus: The MOST format provides a clear and focused role profile, ensuring that the incumbent understands their purpose, goals, and the steps to achieve them.

      Alignment with Organisational Goals: By aligning the role’s mission and objectives with the broader organisational vision, it ensures cohesive progress towards common goals.

      Enhanced Performance Management: With well-defined objectives and tasks, performance can be easily trackedand managed, facilitating continuous improvement and accountability.

      Effective Communication: A structured role profile enhances communication within the team and with stakeholders, as everyone is clear about the role’s purpose and contributions.

      Using the MOST format to craft role profiles can significantly enhance organisational efficiency and employee satisfaction. It ensures that everyone is aligned, motivated, and working towards common objectives with a clear understanding of their contributions and responsibilities.

      Conclusion

      Recruiting ‘tip of the spear’ operational leaders at all levels of management is a strategic imperative for organisations seeking to stay ahead in a competitive landscape. These leaders, whether junior, mid-level, or senior, are instrumental in driving innovation, executing strategy, and achieving transformative results. By identifying the right qualities, implementing targeted recruitment strategies, and ensuring effective onboarding, organisations can build a cadre of operational leaders who will lead them to new heights of success. Embrace the challenge of finding and nurturing these exceptional individuals, and your organisation will undoubtedly benefit from their expertise and vision.

      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.

      Pexels Tima Miroshnichenko

      78 % of Sales & Marketing Teams Don’t Collaborate

      78% of Sales & Marketing Teams Fail to Collaborate: A Call for Alignment

      In a recent meeting that initially seemed poised to bridge the gap between sales and marketing strategies, I immersed myself in a discussion led by a seasoned marketing manager and her team, solely focused on marketing metrics and digital strategy. The objective? Finalising the quarter’s marketing budget, yet noticeably absent were the voices of our sales team. The business is outside FMCG and relies on a dedicated sales team. It requires customers to book a telephone appointment with sales specialists.

      Throughout the meeting, conversations orbited around digital metrics: website traffic, engagement rates, SEO standings, and the fixation on keywords and search terms—critical elements for enhancing online visibility and bolstering brand awareness. Undoubtedly, these metrics are pivotal in today’s digital landscape, where businesses strive to capture consumer attention amidst a sea of online content.

      However, what struck me was the singular fixation on these metrics to the exclusion of other critical aspects. As discussions progressed, I raised a fundamental query: where would the lion’s share of the budget be directed, assuming it would naturally align with our overarching goal of driving appointments for the sales team to convert to sales?

      The unanimous response was unexpected: “Content creation and link building to drive more traffic.” While these strategies are undoubtedly crucial for building an online presence, the focus on traffic growth, without a specific plan for driving the “right” traffic, appeared to miss the core purpose of marketing within the business – to facilitate sales opportunities.

      Intrigued by this emphasis, I delved deeper, probing how many sales were directly attributed to our previous quarter’s marketing efforts. Astonishingly, the team could not provide a definitive answer. This revelation underscored a concerning trend: amidst the pursuit of digital metrics, including SEO keyword rankings and search terms, the direct impact on revenue generation—the ultimate measure of marketing success—had been overlooked.

      Further investigation revealed that some keywords and search terms targeted by our SEO efforts were no longer relevant to the current product offerings. Moreover, they differed from terms aligned with how our customers typically search for the firm’s products or services. This disconnect highlighted a critical oversight: while the marketing team and the agency they employed were striving to rank for specific keywords, those efforts could translate into something other than meaningful customer engagement or sales conversions.

      What also struck me was that all the metrics and reports presented in the meeting had been created by the outsourced marketing agency, whose evaluations heavily leaned on the gospel of Google. It became evident that many of the agency’s conclusions led to recommendations for increased marketing spend and justified their success. Call me cynical, but aligning agency metrics with spending proposals raised questions about true ROI and strategic alignment with sales objectives.  

      Statistics corroborate this disconnect. According to HubSpot, 40% of marketers identify proving the ROI of their marketing activities as their top challenge. Moreover, only 22% of businesses report alignment between their marketing and sales teams (Marketo). This lack of alignment can lead to disjointed strategies, where marketing efforts may not effectively support sales objectives.

      A Practical Example

      Let’s consider a practical example of a pay-per-click (PPC) campaign to illustrate how a minor tweak to the marketing team’s metrics could change the tone of the meeting.  

      Suppose I am trying to determine how much money in pounds I need to spend to sell 100 units of my product. If we know the product demo-to-sale conversion rate is 20%, and we also have data on the click-through rate (CTR) and conversion rate from website visitors to demo sign-ups, we can calculate the necessary traffic and associated costs.

      1. Sales Target: 100 units
      2. Demo to Sale Conversion Rate: 20% (or 0.20)
      3. Number of Demos Required: To achieve 100 sales at a 20% conversion rate, we need 500 demos (100 units / 0.20).
      4. Visitor to Demo Conversion Rate: Suppose the average conversion rate from website visitor to demo sign-up is 5% (or 0.05).
      5. Number of Website Visitors Needed: To get 500 demos with a 5% conversion rate, we need 10,000 website visitors (500 demos / 0.05).
      6. Cost per Click (CPC): Suppose the average CPC in the industry is £1.
      7. Total Marketing Spend: To generate 10,000 website visitors, the required budget would be £10,000 (10,000 visitors * £1 per click).

      By incorporating this calculation into planning, we shift the focus from abstract metrics like traffic growth to concrete metrics directly correlating with sales outcomes.  

      This change provides clearer insights into how marketing spending drives revenue, enhancing strategic alignment and ensuring marketing efforts effectively support sales goals.

      Moreover, the digital marketing mix encompasses various channels, including direct traffic, optimised content, social media, and other avenues. While I acknowledge that some sales likely stemmed from these channels, the team only had top-line traffic stats courtesy of Google. They lacked concrete data on how many sales directly drove by their specific efforts across these channels. This gap in understanding highlights the need for more precise tracking and analysis to ensure that every marketing pound spent contributes effectively to sales.

      Case Study: An Example from Another Industry

      Consider the case of a B2B software company that realised its marketing efforts were not translating into sales. By incorporating sales team feedback and shifting focus from pure traffic metrics to lead quality and sales conversions, they achieved a 30% increase in qualified leads and a 20% boost in sales within six months. This case underscores the universal importance of aligning marketing efforts with sales objectives.

      Effective sales and marketing alignment is not just about shared objectives but also about collaborative strategy development. Research from SiriusDecisions highlights that tightly aligned organisations achieve 24% faster revenue growth and 27% faster profit growth over three years.

      Moving forward, it is imperative for organisations to recalibrate their approach.  

      This involves not only integrating sales considerations into marketing strategy discussions but also fostering a culture of collaboration where both teams work towards shared revenue goals.  Investment in training and technology integration, addressing the perception gap between sales and marketing functions, and prioritising measurable outcomes over vanity metrics are crucial steps towards achieving this alignment.

      Conclusion

      In conclusion, while digital metrics, including SEO and keyword rankings, are invaluable for tracking online performance, their true value lies in their ability to translate into tangible sales results. By bridging the gap between marketing metrics and sales realities, organisations can unlock untapped potential and drive sustainable growth in today’s competitive landscape.

      Recommendation

      If you are a Head of Sales, Sales Director, Managing Director, or an Interim CRO, and sales is a concern, sit in on your next marketing meeting.  The insight might just prove illuminating.

      Sources

      These sources provide the foundational statistics and insights used to highlight the disconnect between marketing metrics and sales realities, the importance of aligning marketing and sales teams, and the broader implications for business growth.

      1. HubSpot – Proving ROI Challenge
      2. Marketo – Alignment between Marketing and Sales Teams
      3. Ascend2 – Importance of Understanding Customer Journey
      4. SiriusDecisions – Impact of Aligned Organisations on Revenue 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 profile and read what others say about Trevor.

      pexels-francesco-ungaro

      The £84 billion Impact created through a Void in Leadership.

      A Void in Leadership is estimated to cost UK business £84 billion annually.

       

      While recent headlines in the UK have been dominated by the new Government’s push to improve productivity, with ministers making high-profile statements, this is not a new phenomenon. Top HR leaders have long been grappling with low productivity, often exacerbated by voids in leadership, and have developed pragmatic strategies to address these gaps.

      Despite the buzz around new policies and government initiatives, many businesses have struggled for years to mitigate productivity losses caused by leadership voids. This ongoing challenge highlights the need for the Government to draw inspiration from the approaches of successful business leaders and learn how to tackle productivity issues effectively.

      The Financial Impact of Leadership Voids

       

      Decreased Productivity: Leadership voids lead to significant productivity losses. Without effective leadership, teams lack direction, reducing efficiency and output. Research from the Institute of Leadership & Management suggests poor management costs UK businesses up to £84 billion annually. This figure includes losses from decreased productivity, poor decision-making, and lack of strategic direction.

      Employee Morale and Engagement: A lack of leadership can lead to low employee morale and engagement. Employees may feel unsupported and uncertain about their roles, leading to increased turnover and absenteeism. The cost of replacing employees can be high, with estimates suggesting that replacing a manager can cost up to £30,000, factoring in recruitment costs, training, and lost productivity during the transition period.

      Operational Disruptions: Leadership voids can disrupt daily operations. Decision-making processes slow down, strategic initiatives stall, and the organisation’s overall efficiency suffers. This can result in missed operational and financial opportunities, affecting the bottom line.

       

      Quantifying the Costs

       
      • Lost Productivity: If a leadership void results in just a 2% drop in productivity for a business with an annual revenue of £10 million, the loss would be £200,000 annually.
      • Turnover Costs: High turnover rates due to low morale can significantly impact performance. If an organisation has to replace three managers in a year, the cost could be around £90,000 (£30,000 per manager).

       

      Overall Impact

       

      While exact figures can vary, the financial impact of leadership voids is substantial. For medium—to large businesses, this could easily translate into hundreds of thousands, if not millions, of pounds annually. Addressing leadership voids promptly through effective interim management can mitigate these losses and maintain organisational stability.

      Understanding the Complexity of Bridging Leadership Voids

      HR leaders understand that there is no simple, one-size-fits-all solution to bridging leadership voids. A comprehensive, adaptable, multi-layered approach is required to effectively address the unique challenges each organisation faces. Traditional recruitment firms often fall short in this regard, as they may not possess the specialised expertise needed to navigate the complexities of leadership gaps. Instead, a more nuanced approach is necessary—one that considers the specific needs of the business, the intricacies of the vacant role, and the strategic objectives of the organisation.

      The NorthCo Approach to Tackling Leadership Voids

      Since 2012, NorthCo has provided Operational Management solutions for businesses where people, specifically management, affect operational productivity and performance. NorthCo’s approach to addressing leadership voids is comprehensive and tailored to each business’s unique needs:

      Headhunting Replacement Managers

      NorthCo excels in headhunting skilled and effective managers who can seamlessly fit into the organisational structure and bring immediate value. By identifying candidates with the right experience and leadership qualities, NorthCo ensures that businesses quickly regain direction and momentum.

      Interim Management Solutions

      During turbulent trading periods or significant organisational changes, NorthCo provides interim management solutions. These interim leaders are equipped to maintain stability, drive performance, and guide the organisation through transitions, ensuring minimal disruption and sustained productivity.

      Filling Temporary Skills Gaps

      For major projects or when specific skills are temporarily unavailable, NorthCo sources professionals to fill these gaps. These individuals bring specialised expertise that ensures projects remain on track and operational goals are achieved without delay.

      Operational Coaching for New Leaders

      NorthCo offers operational coaching to new leaders, ensuring they are well-prepared to take on their roles effectively. This coaching focuses on enhancing leadership skills, strategic thinking, and team management, enabling new leaders to contribute positively from the outset.

      Conclusion

      The financial impact of leadership voids in UK businesses is significant, with estimated costs reaching £84 billion annually. However, this impact can be mitigated through swift and effective recruitment and interim management solutions. NorthCo’s proven track record in providing operational management solutions highlights the importance of addressing leadership voids promptly to maintain organisational stability, productivity, and performance. By sourcing the right people for the right roles, NorthCo helps businesses navigate challenges and achieve their operational goals.

      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.

      Pexels Ron Lach

      Operational CEO Coaching, an alternative to Changing a CEO

      Could Operational CEO Coaching transform your existing CEO?

      Introduction:

      The decision to change a company’s CEO is a critical juncture that can significantly impact an organisation’s trajectory. Often, this decision arises from perceived leadership deficiencies, market challenges, or the need for fresh perspectives. However, an alternative approach gaining traction in the business world is the addition of Operational CEO Coaching to augment the management team’s capabilities. This article explores the significance of Operational CEO coaching as an alternative to CEO replacement and its potential to bring about positive organisational transformation.

      Operational CEO Coaching

      To clarify, when I refer to Operational CEO Coaching, I’m not referring to the typical “how does that make you feel” style of coaching. Instead, I’m talking about Operational Coaching, akin to what you’d experience in a sports team where seasoned advice rooted in extensive operational experience is readily shared and ideas are openly discussed.

      The Traditional Approach to CEO Replacement:

      In many organisations, the decision to replace a CEO is often made under duress. Whether due to declining financial performance, internal conflicts, or an inability to adapt to market dynamics, the incumbent CEO’s shortcomings can prompt the board to seek a new leader. However, this approach, while sometimes necessary, comes with inherent risks and challenges that can disrupt the organisation’s stability and growth.

      One major challenge is the disruption caused by CEO turnover. 

      Transitioning to a new CEO can lead to uncertainty, affecting employee morale, investor confidence, and stakeholder relationships. Moreover, finding a suitable replacement takes work and can be time-consuming and costly. Even with an extensive search process, there’s no guarantee that the new CEO will perfectly fit the organisation’s needs and culture.

      The Emergence of Operational CEO Coaching:

      Amidst the challenges of CEO turnover, many organisations are turning to Operational CEO coaching as an alternative or complementary approach. Operational CEO coaching involves the engagement of an experienced executive coach to work closely with the CEO, providing guidance, support, and feedback to enhance leadership effectiveness.

      The rationale behind Operational CEO coaching lies in its ability to address the root causes of operational leadership deficiencies while allowing the incumbent CEO to remain in their role. Rather than immediately seeking a replacement, organisations invest in developing the existing leadership talent, recognising that leadership effectiveness can often be improved through targeted operational coaching and development.

      Who makes a good Operational CEO Coach

      In an Operational style of coaching, the coach plays a pivotal role. You need an operationally experienced coach who has walked the walk, someone who has a proven track record of success in operational roles, preferably at the executive level, an experienced Interim CEO, or Interim CRO would be a great option. This type of coach brings not just theoretical knowledge but practical insights gained from real-world experience. They understand the intricacies of running a business, navigating challenges, and driving operational excellence. A coach with this background can offer valuable guidance tailored to your specific industry and organisational context.

      Conversely, you wouldn’t want a coach who lacks operational experience or who relies solely on textbook knowledge. While traditional coaching methods may have their place in certain scenarios, they might not be as effective when it comes to addressing the day-to-day operational challenges faced by CEOs. A coach who focuses primarily on emotional intelligence and introspection, without a solid grounding in operational know-how, may struggle to provide actionable advice that directly impacts business performance.

      Benefits of Operational CEO Coaching:

      Operational CEO coaching offers several benefits that make it an attractive option for organisations facing leadership challenges:

      • Personalised Development: Operational CEO coaching offers a unique personal growth and development opportunity. It provides tailored support to address the specific needs and challenges of the individual leader. Through one-on-one sessions, the Operational coach helps the leader identify blind spots, leverage strengths, and develop strategies for growth, inspiring them to reach their full potential. 
      • Enhanced Leadership Skills: Operational Coaching enables CEOs to develop various operational leadership skills, including specific operationally oriented skills, communication, strategic thinking, decision-making, and emotional intelligence. By honing these skills, CEOs can effectively lead their organisations through complex challenges.
      • Objective Feedback: One key benefit of CEO coaching is the provision of objective feedback. Unlike internal stakeholders with biases or vested interests, CEO coaches offer an impartial perspective, enabling CEOs to gain valuable insights into their leadership style and its impact on others.
      • Improved Performance: Through regular operational coaching sessions, CEOs can track their progress and measure the impact of their efforts. As they implement new strategies and behaviours, they can see tangible improvements in their performance and the performance of their organisations.
      • Sustainable Change: Unlike quick-fix solutions such as CEO replacement, CEO coaching focuses on sustainable, long-term change. By investing in the development of the existing leadership team, organisations build a strong foundation for continued success.

      Case Studies:

      Several high-profile companies have successfully leveraged CEO coaching to drive organisational change and improve performance:

      1. Google: Eric Schmidt, the former CEO of Google, famously hired Bill Campbell, the “Coach of Silicon Valley,” to provide coaching and mentorship. Schmidt credited Campbell with helping him navigate the challenges of leading a rapidly growing tech company.
      2. Microsoft: Satya Nadella, the CEO of Microsoft, has spoken openly about the impact of coaching on his leadership journey. Nadella attributes much of his success to the guidance he received from his coach, helping him transform Microsoft’s culture and drive innovation.
      3. General Electric: When Jack Welch took the helm at General Electric, he sought the guidance of a leadership coach to help him navigate the complexities of leading a large multinational corporation. Welch’s coach played a crucial role in shaping his leadership style and strategic vision.

      Operational CEO Coaching isn’t the answer to every situation

      It’s important to acknowledge that not every incumbent executive is open to being coached. Some may even be hostile to the idea, viewing it as a challenge to their authority or expertise. Additionally, there are those who might appear open to coaching initially, but when it comes down to it, they are equally closed off. Therefore, I’m not suggesting for one minute that an operational coach is a panacea for all leadership challenges. It’s possible that coaching may be a non-starter or ultimately fail to produce the desired results. However, by at least considering the option, making it available, and doing our best to provide support, the board demonstrates its commitment to doing the right thing for the executive and the organisation as a whole.

      How might you approach Operational coaching with the Management Team?

      When broaching the subject of operational coaching with your executive team, it’s crucial to approach it thoughtfully and positively, especially considering that not all executives are initially open to the idea. One effective approach is to start with a short operational review, commissioned independently. This review can be conducted by an executive who might potentially serve as the coach. Its purpose is to identify coaching opportunities, assess operational competence and structures, and determine whether coaching is a viable option.

      By starting with this operational review, the topic of coaching is introduced in a non-threatening manner, focusing on the organisation’s objectives and the potential benefits for both the executives and the company as a whole. This approach allows for a more organic and constructive discussion around the role of coaching in achieving operational excellence and fostering leadership development within the executive team.

      If the potential coach has performed the job well, they will have built credibility and established sound professional relationships with the executive team and the wider business, making an extension to the initial brief a natural next step. This extension could involve a deeper, ongoing coaching relationship aimed at addressing specific challenges and fostering continuous growth and improvement within the organisation.

      And what if the Operational Coaching doesnt have the desired effect

      Of course, if the coaching doesn’t work out and you ultimately decide to change the CEO, there are several upsides. Firstly, you have done the right thing by providing the CEO with support and the best chance of success. Secondly, the coach will have established solid relationships across the business, allowing them to effectively hold the fort until a new CEO is found. Additionally, the coach will have identified potential internal talent which might serve as a natural replacement for the CEO. Moreover, the coach will be in a better position to identify the skills and qualities the new CEO requires, helping to streamline the recruitment process and ensure a smoother transition.

      Conclusion:

      The decision to change a company’s CEO is undoubtedly significant, with far-reaching consequences for the organisation. However, before embarking on the CEO replacement path, it’s essential to consider alternative approaches such as operational CEO coaching. By investing in developing existing leadership talent, organisations not only mitigate the risks associated with CEO turnover but also foster a culture of continuous learning and improvement, instilling a sense of optimism and hope for the future.

      Operational CEO coaching offers a personalised and sustainable solution to address leadership deficiencies, enhance performance, and drive organisational success. It is a proven method that can empower CEOs to unlock their full potential, lead confidently, and navigate the complexities of today’s business environment. In a world where effective leadership is more critical than ever, CEO coaching represents a valuable tool for organisations seeking to thrive in a rapidly evolving landscape.

      Navigating turbulent Waters – The CEO Coach in Action

      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.

      Pexels Necip Duman

      Navigating Turbulent Waters – The CEO Coach in Action

      The CEO Coach in Action

      Making the argument for Portfolio Managers to employ the services of a CEO Coach before management teams begin to struggle under the weight of economic headwinds.

      Managing a portfolio of investments is a formidable task. The ever-changing economic trading conditions are introducing a growing number of businesses that are not aligning with the original investment thesis, thereby amplifying the complexity of the portfolio manager’s role.

      It is likely, the trading landscape has changed since your original investment thesis.

      Due to economic conditions, the trading landscape when you crafted your original investment thesis may have changed. You likely built some resilience, but conditions may have diverged significantly from those prevalent when you crafted that initial investment thesis, posing new challenges to your trading strategies. 

      Amidst wildly differing trading conditions, the management team you backed likely had a solid track record of running the business during relatively stable times. However, they may not have the necessary experience running that business in adverse trading conditions. 

      Adverse trading conditions present an opportunity for growth and learning, as the style and skills required of a leader must evolve accordingly. It’s not uncommon for an investment firm to select a CEO who appears to be a perfect fit based on the prevailing conditions at the time, only to find them struggling to adapt when faced with a dramatically different trading landscape. 

      Management and Leadership adaptability.

      I often speak about the art of adaptability of leadership style and adopting and appropriate leadership style. And the ability for leaders to demonstrate adapatability of leadership style is perhaps more important during tough economic conditions. If a management team struggles during a downturn, it doesn’t necessarily follow that the management team is inherently incapable; instead, it underscores the necessity for adaptability.

      Leaders who lack experience in turbulent times can still thrive with the right support. Recognising the need for this support early on is not just important; it’s empowering. It enables proactive measures rather than waiting for the situation to worsen. Ultimately, a leader’s ability to adapt and seek appropriate support in the face of changing trading conditions can be the key to success.

      A job for the in-house value creation team. 

      A report by McKinsey & Company pointed out that private equity firms with dedicated value-creation teams (teams that work exclusively on the companies in the portfolio and not on sourcing, due diligence, and transactions) did not manage to outperform peers by a significant margin during regular cycles. According to the article, the return differences were only slightly improved leading up to 2008 and even more negligible from 2014 to 2019.

      But the report goes on to say that these teams did seem to add real value during a recession. McKinsey found that firms with value-creation teams “meaningfully outpaced the others, achieving a full five percentage points more in IRR (23 percent) than firms without portfolio-operating groups (18 percent).”

      But we don’t have an internal value creation team!

      Introducing the CEO Coach, a seasoned coaching advisor for your CEO and senior management team. The CEO Coach serves as a beacon of guidance, helping these leaders navigate through turbulent times and steer the ship towards calmer waters. 

      A CEO Coach is a seasoned professional who works closely with the CEO and other top executives to enhance their leadership capabilities and help them navigate the multifaceted landscape of running a private equity-backed company. Their primary focus is supporting operational improvements aligned with the value creation plan, especially when turbulent times threaten to disrupt the status quo.

      What is the difference between a CEO coach and a Non-Executive Chairman?

      The roles of a Non-executive Chairman and a CEO Coach are distinct yet complementary, each contributing unique perspectives to the leadership landscape. A Non-executive Chairman, often a member of a company’s board of directors, holds a governance-focused position, providing oversight, strategic guidance, and ensuring effective board functioning. Their role is rooted in a broader perspective on the company’s direction and shareholder value. On the other hand, a CEO Coach, while also concerned with strategy, operates at an individual level, working closely with the Chief Executive Officer, and often the executive team. A Coach is akin to a mentor, offering personalised guidance to the CEO, helping them navigate challenges, enhance leadership skills, and optimise their decision-making. While the Non-executive Chairman contributes to the overall governance and strategic vision, the Coach nurtures the personal and professional growth of the CEO, fostering a symbiotic relationship that can significantly benefit the organisation.

      Operational Excellence and Value Plan Creation

      A critical aspect of a CEO coach’s role is assisting management teams in executing the value plan crafted by the private equity firm. This plan outlines the strategies and objectives aimed at enhancing the company’s value during the investment period. Operational excellence is at the core of this process, as it involves improving the company’s efficiency, reducing costs, and maximizing profitability.

      1. Operational Assessment: The coach often begins with a comprehensive operational assessment. This involves identifying areas of improvement, assessing the current processes, and understanding the company’s strengths and weaknesses.
      2. Strategic Alignment: To create and execute an effective value plan, the coach helps align the management team’s goals with the private equity firm’s expectations. This alignment is crucial in turbulent times when the company must adapt swiftly to changing market conditions.
      3. Change Management: Operational improvement often involves significant processes, culture, and structure changes. A coach assists in managing these changes, ensuring they are implemented smoothly and efficiently.

      Turbulent Times and Crisis Management

      Turbulent times, such as economic downturns or unexpected market disruptions, can throw even the best-laid plans into disarray. This is when the guidance of a CEO coach becomes especially critical.

      1. Adaptability: In a crisis, adaptability is key. A CEO coach helps the management team adjust their strategies, make tough decisions, and focus on the long-term goals despite the immediate challenges.
      2. Stakeholder Communication: Effective communication is vital during turbulent times. A CEO coach can guide communication with employees, investors, and other stakeholders to maintain trust and confidence.
      3. Risk Mitigation: To weather a storm successfully, it’s important to identify and mitigate risks. The CEO coach works with the management team to assess and manage risks effectively.
      4. Mental Resilience: Leadership can be lonely, especially during a crisis. A CEO coach can provide emotional support and help the CEO and management team develop mental resilience.

      Case Study: The CEO Coach in Action

      Consider a hypothetical scenario in which a private equity-backed company in the retail sector faces a turbulent market disrupted by rapid changes in consumer behaviour. The CEO coach would play a pivotal role:

      • Conducting a thorough assessment of the company’s operations, identifying areas for improvement, and aligning strategies with the value plan.
      • Assisting the management team in adjusting the value plan to adapt to the changing market conditions, possibly by reallocating resources or entering new market segments.
      • Guiding communication to stakeholders, ensuring that employees remain motivated and investors stay informed.
      • Helping the CEO and management team manage the stress and anxiety of navigating a turbulent market.

      Conclusion

      A CEO coach is a trusted advisor and guide for management teams. Their expertise in operational improvement, crisis management, and leadership development can be a game-changer during turbulent times. By working closely with CEOs and their teams, CEO coaches help ensure the successful execution of the value plan and create a path to sustainable growth, even in the face of uncertainty. As private equity continues to be a driving force in the business world, the role of the CEO coach remains as critical as ever in supporting private equity-backed companies in achieving their goals.

      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.

      Pexels Adalatnaghiyev

      Leadership of an Interim CRO

      Navigating Turbulent Waters: The Role of an Interim CRO

      Let’s face it—times are tough. More and more companies are facing financial distress, operational inefficiencies, or other challenges threatening their viability. Organisations may turn to an Interim CRO during such tumultuous times to steer them through troubled waters, make tough decisions, and catalyse rapid change. These seasoned professionals bring unique skills, helping companies stabilise quickly, restore order, and pave the way for sustained growth.

      What is an Interim CRO – Chief Restructuring Officer?

      An Interim CRO is a high-level executive appointed by a company’s management or board of directors to lead the financial and operational restructuring efforts during periods of distress or crisis. The primary goal of an Interim CRO is to restore the company’s financial health, enhance operational efficiency, and ultimately guide it towards a sustainable and prosperous future.  

      The Role of an Interim CRO:

      Interim CROs are appointed with a specific mandate: to bring about swift and effective change in organisations facing financial or operational crises. Unlike traditional leadership roles, CROs operate with a sense of urgency, understanding that time is of the essence when a company is on the brink. Their primary objectives include :

      • Cleaning up the existing business.
      • Right-sizing.
      • Restructuring a management team.
      • Returning to fundamental business principles.
      • Establishing a solid platform for future growth.
      • Holding the fort and sourcing new management.

      Making Tough Decisions:

      One of the hallmark traits of Interim CROs is their ability to make tough decisions swiftly. Whether it involves restructuring debt, streamlining operations, or cutting non-essential costs, these leaders understand that decisive action is crucial for stabilising the ship. By identifying and addressing the root causes of the organisation’s challenges, they create a foundation for sustainable recovery.

      An Interim CRO will Get Back to Basics:

      When organisations face turmoil, it’s often a result of losing sight of core business principles. Interim CROs focus on getting back to basics, revisiting the fundamentals that may have been neglected. This could involve redefining the company’s mission and vision, reevaluating product or service offerings, and reaffirming commitment to customer satisfaction. CROs lay the groundwork for a more resilient and adaptive organisation by emphasising fundamental principles.

      Building a Platform for Growth:

      Stability is not the end goal; it’s the stepping stone to growth. Interim CROs understand that their role extends beyond crisis management. They work to create a strategic roadmap that positions the organisation for long-term success. This may involve identifying new market opportunities, investing in innovation, or fostering a culture of continuous improvement. Through strategic planning and execution, CROs set the stage for sustainable growth.

      Navigating Internal and External Complications:

      The challenges faced by Interim CROs are not limited to internal organisational issues. External factors such as economic downturns, regulatory changes, or global crises can further complicate the restructuring process. Successful CROs demonstrate agility and resilience, adapting their strategies to navigate internal and external complexities. Their ability to anticipate and respond to these challenges is instrumental in ensuring the organisation’s survival and future prosperity.

      Key Responsibilities of a Chief Restructuring Officer CRO:

      Financial Diagnosis: The CRO begins by comprehensively analysing the company’s financial situation. This entails reviewing cash flows, financial statements, debt obligations, and other critical financial data. This assessment helps the CRO identify the root causes of the distress and formulate a recovery plan.

      Developing a Restructuring Strategy: Based on the financial diagnosis, the CRO works alongside the company’s leadership to develop a restructuring strategy. This strategy often includes debt renegotiation, asset sales, cost reduction measures, and revenue enhancement initiatives.

      Stakeholder Communication: Effective communication is a cornerstone of the CRO’s role. They engage with various stakeholders, including creditors, employees, customers, and investors, to inform them about the restructuring process, address concerns, and maintain trust.

      Operational Improvement: Besides financial aspects, a CRO optimises the company’s operations. This may involve streamlining processes, identifying inefficiencies, and implementing changes to improve overall efficiency.

      Legal Compliance: CROs ensure the restructuring process meets all legal and regulatory requirements. This includes insolvency proceedings, if necessary, and ensuring that the company complies with its obligations to creditors and other stakeholders.

      Negotiation and Mediation: CROs play a crucial role in negotiating with creditors, suppliers, and other stakeholders to reach agreements that are beneficial to the company. They may also mediate disputes and find common ground among conflicting interests.

      Change Management: Managing the organisation through change is integral to the CRO’s role. They must lead the company’s workforce through difficult transitions, maintain employee morale, and ensure that the team remains focused on the restructuring objectives.

      Measuring Progress: CROs continuously monitor and assess the progress of the restructuring efforts. They track key performance indicators, financial metrics, and milestones to ensure the company is moving in the right direction.

      The Benefits of Appointing a CRO:

      Expertise: CROs typically bring a wealth of experience in handling distressed situations, making them well-equipped to navigate complex financial challenges.

      Impartiality: CROs can offer an objective perspective, unburdened by existing relationships or biases within the organisation.

      Efficiency: Their focused attention on restructuring allows the company’s existing management to concentrate on day-to-day operations.

      Crisis Management: CROs help manage the company through a crisis, mitigating risks and preventing further deterioration.

      Cost-Effective: In the long run, the appointment of a CRO can lead to cost savings by avoiding expensive mistakes and streamlining operations.

      Conclusion:

      Interim Chief Restructuring Officers (CRO) can be pivotal in helping companies weather financial storms and emerge stronger. They play a pivotal role in the corporate world, especially during times of crisis. Their swift decision-making, focus on fundamentals, and commitment to building a platform for growth make them invaluable leaders in turbulent times. As organisations continue to face challenges in an ever-evolving business landscape, the role of CROs will remain critical in guiding companies toward stability, resilience, and, ultimately, 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.

      Pexels Lukas Hartmann

      Is an Interim CEO the Right Choice?

      When Is an Interim CEO the Right Choice?

      In the dynamic business world, companies often face unforeseen challenges and changes in leadership. Whether due to sudden departures, operational crises, or a fresh perspective, organisations may need a temporary chief executive officer (CEO). This is where an interim CEO can be the perfect solution. In this article, we will explore situations and scenarios where hiring an interim CEO is the best option for a company.

      Sudden CEO Departure

      One of the most common reasons to hire an interim CEO is the sudden departure of the current CEO. This can happen for various reasons, such as health issues, personal reasons, or a new career opportunity. In such cases, companies may not have a suitable replacement readily available, making an interim leader an ideal choice to steer the ship temporarily.

      Crisis Management

      In times of crisis, an organisation requires swift and effective leadership to navigate troubled waters. This could be financial instability, a PR disaster, or a sudden market downturn. Interim CEOs often have experience in crisis management and can quickly step in to stabilise the situation and provide a clear path forward.

      An Interim CEO with Turnaround Expertise

      Sometimes, a company is in dire need of a turnaround. In these situations, an interim CEO with a proven track record of reviving struggling businesses can be a valuable asset. These seasoned professionals are equipped to make tough decisions, cut costs, and implement strategic changes essential for a company’s survival and recovery.

      Interim CEO to Bridge the Leadership Gap

      Sometimes, a company may be between CEOs searching for a suitable permanent replacement. An interim CEO can bridge this leadership gap, ensuring that the company continues operating smoothly while searching for a long-term CEO. This ensures that critical decisions are not postponed and that the company remains on course during the transition.

      Change in Strategy

      Companies often need to pivot or redefine their strategic direction to stay competitive. When there’s a need for a new vision or a fresh perspective, an interim CEO with a specific skill set can be brought in to drive the change. They can implement new strategies and offer insights without the long-term commitment of a permanent CEO.

      Merger or Acquisition

      During mergers or acquisitions, it’s common for companies to experience significant transitions in leadership. An interim CEO can help navigate the complexities of integration, bringing together different corporate cultures and ensuring a smooth transition for employees and stakeholders.

      Family Business Succession

      In family businesses, succession planning can be incredibly challenging. Hiring an interim leader from outside the family can provide an objective and unbiased perspective on the business. This can be crucial for maintaining family harmony and ensuring the company’s long-term success.

      Board-Driven Change

      Sometimes, a company’s board of directors may initiate changes at the executive level, including replacing the CEO. In such instances, an interim leader can help manage the transition and keep the organisation running smoothly while the board selects a permanent CEO.

      Conclusion

      The role of an interim CEO is not limited to crisis management; it encompasses a wide range of scenarios where a company requires a skilled leader temporarily. Interim CEOs can bring stability, expertise, and fresh perspectives to organisations during change or challenge. When selected strategically, they can serve as a bridge to a brighter future for a company, helping it adapt to evolving circumstances and thrive in the face of adversity. Ultimately, the decision to hire an interim CEO should be well-considered, tailored to the specific needs and circumstances of the company in question.

      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.