The McManigle Company

Businesses whose leadership consistently perform understand the brand, the product, and know-how to weather both good and bad economic cycles. Take a moment to reflect on the basics that emanate in each of Walt Disney’s quotations. . .

“When we consider a new project, we really study it – not just the surface idea, but everything about it. And when we go into that new project, we believe in it all the way. We have confidence in our ability to do it right. And we work hard to do the best possible job.”

The Basics: Planning, Commitment, Confidence to perform, Hard work.

 

“There’s really no secret about our approach. We keep moving forward-opening up new doors and doing new things – because we’re curious. And curiosity keeps leading us down new paths. We’re always exploring and experimenting. We call it Imagineering – the blending of creative imagination with technical know-how.”

The Basics: Momentum, Inquisitive creativity, No fear, Technical competence.

“Well, by this time my staff, my young executives, and everything else, are convinced that Walt is right. That quality will out. And so I think they’re going to stay with that policy because its proved that it’s a good business policy. Give the people everything you can give them. Keep the place as clean as you can keep it. Keep it friendly, you know. Make it a real fun place to be. I think they’re convinced and I think they’ll hang on after…as you say…well…after Disney.”

 

The Basics: Quality, Quality, Quality! Stay with what works in policy and action, Leave nothing on the table, Future leaders learn by example and success.

 

“The whole thing here is the organization. Whatever we accomplish belongs to our entire group, a tribute to our combined effort. Look at Disneyland. That was started because we had the talents to start it, the talents of the organization. And our World’s Fair shows-what we did was possible only because we already had the staff that had worked together for years, blending creative ideas with technical know-how.”

 

The Basics: The right people in the right jobs, Teamwork,  Selfless sharing of credit, Leveraging strengths to accomplish goals.

“No matter what the provocation, I never fire a man who is honestly trying to deliver a job. Few workers who become established at Disney Studio ever leave voluntarily or otherwise, and many have been on the payroll all their working lives.”

The Basics: Loyalty, Fairness, Integrity and Understanding that highly effective teams are made up of unique individuals with specialized and/or unique talents necessary for the team’s overall success…not “yes-men” or auto-matrons.

“You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you.”

The Basics: Failure happens, it hurts, learn from it, embrace it, get up and start over. What doesn’t kill you makes you stronger.

“People often ask me if I know the secret of success and if I could tell others how to make their dreams come true. My answer is, you do it by working.”

 

“I suppose my formula might be: dream, diversify-and never miss an angle.”

“The Quotable Walt Disney” Compiled by Dave Smith, Disney Editions, Disney Enterprises, Inc. Copyright 2001

Industry Expertise ≠ Leadership Expertise
Boards and stakeholders often get tied up in the “industry experience” conundrum when seeking to engage an interim leader. The truth is it really doesn’t matter if he/she knows the ins and outs about your widget. The fact is business is business . . .the key is finding a leader who can grasp the big picture, change, motivate and inspire while making the tough decisions.

Some recent examples of leadership expertise outweighing industry expertise:
• Whiteacre leading GM – knew nothing about the car industry
• Sokul tapped by Buffet to turn around NetJets – came from the energy sector

The most important question any board or stakeholder should ask of any potential interim CEO is, “How many times have you held the role of the final decision maker with accountability for the strategic, operational, financial and legal affairs of an organization, subject only to the board for approval?” Serving as a member of the leadership team doesn’t count. Acting as a surrogate to a CEO doesn’t count. Being a partner in a firm advising the CEO doesn’t count.

The ONLY thing that counts is a tested leader who has been there and done that multiple times with quantifiable results.

Once the decision has been made that leadership change is necessary the next question is “Who do we call?” Typically legal counsel or accounting firms are familiar with financial consulting firms or interim leadership firms. But stakeholders need to be aware that many consulting firms prefer to have their employee in the interim CEO role who can then leverage-up and engage their firm or group as “financial consultants” to the interim CEO. This occurs over and over again.

As one notable example, Enron hired Steve Cooper of Zolpho-Cooper as its interim CEO. Then Zolpho-Cooper was hired to assist as many of its employees were added to the engagement. Mr. Cooper was paid handsomely for his role and his firm was also paid significantly for its assistance. Without comment as to the eventual results, is this a conflict of interest? You decide. Is it possible to honestly separate your interests from that of your firm when you are in essence serving two masters? And, shouldn’t the interim CEO bring a totally unbiased and clean slate to the board room, operations and the negotiation table?

From my perspective as both an operator and from being on both sides of the table, the reality is that financial analysis can be a never-ending, leveraged revenue generator for consulting firms that comes at a considerable cost to an already cash poor company. Moreover, it can paralyze management as they wait for the latest and greatest numbers while opportunities for real operational change, decisive action and results are stalled. In my opinion, only an interim CEO without ties to a financial consulting firm can avoid this pitfall.

This question is fundamental as shareholders, boards and stakeholders struggle to find solutions and address management issues that may have led, or are leading, a company into operational and financial crisis. There are no easy answers; however, an interim leader (with either turnaround or business reorganization experience) can make a significant difference in correcting management lapses and breathing new energy into a struggling enterprise.

Here are a few examples of when a change at the top is necessary:

• The CEO has lost the trust of his board and shareholders.

• The CEO is unwilling (which often includes his management team) to let go or change a strategy or paradigm in the face of mounting losses.

• A strong management team doesn’t exist that can lead and perform under duress.

• In the face of crisis, the CEO has lost the ability to make timely and accurate decisions, e.g. “the deer in the headlights” effect.

• The CEO is an industry task expert but does not have the ability to lead, motivate, and hold others accountable.

• The CEO is just the wrong person, with the wrong skills, at a wrong time.

“Failing organizations are usually over-managed and under-led.” Warren G. Bennis