Developing Organisational Agility

Transcription

1 Entendeo Case Study Developing Organisational Agility Abstract Chris Borelli is one of four Directors of Consultancy Services for BGB- Nielsen, a successful global consultancy based in Switzerland. With a major new research service launching worldwide in less than 12 months time Chris s team is under growing pressure. Other BGB product launches are meeting their milestones yet despite having a strong proposition, a talented and experienced team and the benefits of a growing global market, Chris s team is falling significantly behind schedule. As if that wasn t challenging enough this situation is having unintended consequences that are adding complexity and pressure. For example, the Vice President of Brand Marketing is concerned about the potential impact of delays on customers, and the pressures are exposing divisions and tensions between team members. So, what is the best way to ensure that the team remains customer focused, dynamic and agile? What are Chris Borelli s priorities, not only to achieve short- term goals but also to ensure long- term success for the project and BGB- Nielsen? Case Study: Developing Organisational Agility 1

2 Overview Chris Borelli is one of four Directors of Consultancy Services for BGB- Nielsen, a successful and fast- growing consultancy based in Geneva with offices in London, Shanghai, Sao Paulo, San Francisco and Mumbai. Talented and experienced, Chris has been with BGB for three years and in September 2012 was promoted to be one of four Directors of Consultancy Services together with his colleagues Lars Hallstrom, Peter McCord and Maria DiSimoni. From September 2012 the company was restructured with the explicit strategic intention of making BGB- Nielsen more innovative and customer- focused. Each Director of Consultancy Services (DCS) was given the same set of priorities: 1. Develop and launch at least one major new product in the next 24 months. 2. Provide a proof of concept for the product and business model as soon as possible and within 6 12 months. 3. Gain board approval for a new business model, business plan and marketing plan. 4. Generate advance orders before launch of USD 5 million, or 50% of total development and launch costs. Now, 12 months into the project Chris and the other Directors are facing a board- level progress review of their work. There are rumours that BGB- Nielsen cannot afford to launch all four major projects at the same time costs need to be controlled and efficiencies achieved and the view is developing that after the review at least one project will be stopped. Each DCS reports in a matrix structure to two board- level executives: David Bauer, BGB s Senior Vice President, Consultancy Services, and Sarah Karel, Senior Vice President, Brand Marketing. Both David and Sarah have told Chris that his project needs to make progress in several key areas and that he can expect a tough review from the board. The Recent History of BGB- Nielsen The board s intention when launching the new structure for BGB- Nielsen in 2012 was to focus the work of each DCS on leading the business so that it could become more innovative, customer- focused and commercially aware. Historically these have been difficult issues for BGB, which is seen as being prudent, rigorous, a little old- fashioned and European, rather than exciting, innovative and commercially competitive. BGB provides consultancy and research services for governments, NGOs (including the World Bank) and major corporations worldwide. Its work covers most major sectors and issues from ranging from environmental analysis to demographic market sizing, as well as project management services for governments, corporations and investors. 85% of BGB s revenues are from banking, healthcare / biotechnology, retail, energy, mining, manufacturing and technology. 55% of BGB s revenues are from Europe, North America or Japan, a figure that was 80% only 18 months ago. The last five years have seen several major challenges including: Market saturation combined with cutbacks from previously reliable customers in mature markets of Europe and North America. Intense competition for new customers in growing markets of Asia and Latin America. A 12% fall in revenue and a 6% fall in profits for the year to July The firm needs more revenues and fewer costs, simultaneously. One team focusing on the banking sector leaving BGB and setting up their own competitor business. Sustained shareholder pressure that led to the early retirement of the CEO and the arrival in 2012 of Anshu Rao the Case Study: Developing Organisational Agility 2

3 new CEO who implemented the restructure. Continuing criticism in the press that BGB is losing ground to its rivals and that its culture is too formal and bureaucratic to be competitive. This message is now starting to be picked up by clients and is reflected in perceptions of the BGB brand. Finally, in late 2012 a European BGB executive in Shanghai was arrested on charges of bribery. The case made headlines worldwide. Against this backdrop the board will meet to consider the best way forward for each of the major initiatives being developed by Chris, Lars, Peter and Maria. The World of Chris Borelli Chris Borelli studied in the UK before obtaining his PhD in Economics from the University of Chicago. After working as a research associate at Chicago s Graduate School of Business he held several roles, including Commercial Director with a US- based biotechnology firm and Consultant with a small private equity firm based in Geneva. Chris s background, although impressive, has left him uncertain about how best to resolve the challenges that are beginning to confront him. For example, within the last month: Danny Wilde, the team s sales manager, has refused to discuss a crucial part of the project (the branding and launch plan) with any customers at all. He claims it is too risky, relationships with clients are too shaky, and he would rather use key client relationships to sell more now, not to research a new project. However, reluctantly Danny has agreed that he will discuss these issues with clients after the project has received board approval. The problem is that without the research the team won t know who to target for early sales and they won t have the credibility needed for board approval. This issue is becoming increasingly difficult with more and more unhappy s being sent around the project team. Chris feels that he needs to get a handle on the situation before it escalates. Danny, who is very capable and conscientious, is becoming entrenched in his view. He reports through a matrix structure to Chris and a colleague of Sarah Karel s in marketing. Three members of the team have expressed a wide range of concerns about the project. Chris has spoken with them each individually but the complaints continue and for these three the glass is always half- empty. In other words, their concerns are accurate but they are only half the story. Why not launch in Africa first? Won t this cannabalise our existing products? How can we go to market in the USA? Why are those the priority markets why not somewhere else? It s obvious that current technology won t support the long- term growth of the project, We don t know what customers in South- East Asia want, and so on. All relevant issues but they are problems in search of solutions. The project team includes 30 people based in three locations: Geneva, Shanghai and San Francisco. In conference call meetings the Chinese are often deferential or silent, the Americans are talkative and the Europeans sound gloomy and depressed. People aren t really listening to each other and they prefer instead to explain what they ve been doing on their own, rather than finding ways to genuinely collaborate. Chris is unsure if this is because of different national cultures or whether it s the product of a single BGB culture. Everyone has clear objectives and although Chris is encouraging people to Case Study: Developing Organisational Agility 3

4 work together they do so when told to, then revert to their preferred way of working in isolation. Five of the strongest performers in Chris s team in Geneva have taken to supporting each other by discussing concerns and frustrations about the project with each other, often after work. They are too professional to blame individuals or even to raise it with Chris, but it is obvious that their motivation is falling at the same rate that their concerns are rising. No less than three of Chris Borelli s predecessors were asked to leave the company shortly after making presentations to the board. This happened in 2009 and 2010 when the business was experiencing a tough time and since then (and for that reason) many of those board members have moved on. Even so, presentations and dealings with the board are viewed with serious concern, even anxiety, by everyone in Chris s team. In practice, this means that no one wants to join Chris for the presentation and everyone is being ultra- cautious with their facts and work on the project. In most companies a board presentation might be viewed as an opportunity to shine; at BGB it is seen as a toxic and potentially career- limiting voyage into the lions den. The project is behind schedule. By now the team should have developed a proof of concept for the product and a business model. These have been developed but questions still remain and will need another four weeks to resolve. Chris s meeting with the board seeking approval for the project s continuation is in four weeks time. This contrasts with the other three projects which, although offering less commercial potential, are simpler, less risky and on track. Sarah Karel, Senior Vice President of Brand Marketing, is impressed with the product s potential but is concerned about the potential impact of delays on customers. The Finance Director is also grumbling about potential cost overruns, even though Chris s project is actually spending 4% less than budgeted. The Bottom Line Despite these challenges Chris Borelli is positive, enthusiastic and utterly committed to the project and with good reason. Five of BGB s biggest clients have expressed serious interest in the product but need more details and have yet to commit, and a further 20 are also positive again, without giving final commitment. In addition, 10 major new clients from strategic markets in Asia and Africa are also interested in the new product. Chris is convinced that the project will not only succeed but be even bigger than the targets that have been set. He believes it could break even within an incredible six months of the launch and become BGB s biggest product within two years. Chris realises, however, that the future for the product and BGB doesn t sit with his project: it rests with the culture, people and leadership of BGB- Nielsen. With only four weeks until the board review Chris believes that the challenges his team faces can be grouped into several areas: Succeeding with the project Energising and focusing the team Establishing a positive can- do attitude Surviving the board review Taking the project through launch and beyond Where should he start? Case Study: Developing Organisational Agility 4

5 Key Questions Priority actions what are the priorities for Chris Borelli? What would be your first three actions if you were Chris? Longer- term actions what action would you take to ensure the long- term success of Chris s project at BGB- Nielsen? Change readiness: o What are the drivers of success? o What should Chris have done at the start of the project? o What are the essential actions needed to prepare a team for major changes? Enablers: o What are the behaviours that will help the project achieve progress? o How can these behaviours be developed and strengthened? o How would you accelerate progress? What are the main levers to use? Blockers: o What behaviours are slowing progress or undermining the project? o How should these blockers be managed in the future: can they be prevented and if so, how? If they are inevitable how should they be managed? Commitment: o Whose commitment is needed for the project to succeed (who are the stakeholders) and why is their commitment important? o How would you build engagement and commitment among team members? o How would you ensure support from other stakeholders? o What will happen if commitment among stakeholders is achieved, and what will happen if it is not present? The specific implications for you when it comes to achieving organisational agility what practical changes do you need to make to the way you manage people and projects? What are the key lessons and areas for development? Be prepared to discuss these with your coach. Case study prepared by Brian Edwards Entendeo Ltd 2013 Case Study: Developing Organisational Agility 5

6 We provide executive coaching, leadership development and consultancy expertise for individuals and organizations worldwide. About Entendeo With a growing team of 60 coaches, three international offices and a growing client base of organizations both large and small, Entendeo provide a powerful, cost-effective and proven approach to executive development and coaching. Our Coaching and Leadership Programmes Our work is delivering 1:1 coaching and leadership development tailored for each client. This typically supports managers in a range of situations including: Leading people through changing, challenging times Managing performance, giving feedback, objective setting Building motivation and employee engagement Developing talented managers and future leaders Shaping and creating business culture Strengthening collaboration and teamwork Developing sales, consulting and communication skills Succeeding in a new role Strengthening coaching skills and continuous learning Training in specific skills (eg negotiating, selling) Developing personal effectiveness and career success Our Consultancy Work Assessing business challenges - eg assessing people's development needs, understanding levels of engagement, identifying the support needed for future leaders Advising on ways to strengthen the business and action planning - eg how best to lead an organization through a time of change or writing engaging, company-wide communications Business writing and research to support executives - eg producing case studies and development materials Group coaching and facilitation - eg supporting members of new or senior teams How We Do It We provide a range of interventions high impact executive coaching, consultancy and tailored development programmes so that people: Provide support and challenge, both for themselves and for members of their team. Generate practical insights leading to behavioural change. Learn and are open to the need for continuous development, flexibility and change. Develop strong, effective business relationships both internally (within the organization, leading to greater Build their confidence, understanding, awareness and skills. collaboration and teamwork) and externally. Our approach is based on our values including the need to help people understand, build, innovate and execute. Contact Brian Edwards, Managing Director Jeremy Kourdi, Director E: BEdwards@Entendeo.com E: JKourdi@Entendeo.com M: +44 (0) M: +44 (0) T: +44 (0) T: +44 (0) UK head office: Level 17, Dashwood House, 69 Old Broad Street, London, EC2M 1QS. United Kingdom Case Study: Developing Organisational Agility 6 Hong Kong office: Level 19, Two International Finance Centre, 8 Finance Street, Central Hong Kong