The McManigle Company

How Leaders Make a Difference

sharon — Sat, 19 Feb 2011 14:07:09 +0000

“All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.”

~John Kenneth Galbraith

Lessons from Walt Disney

sharon — Sat, 19 Feb 2011 14:04:17 +0000

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 Qualification Test

Drew — Mon, 22 Nov 2010 03:18:17 +0000

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.

Lessons from Enron

Drew — Mon, 22 Nov 2010 03:14:58 +0000

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.

When is it time for an Interim Leader?

Drew — Mon, 22 Nov 2010 03:11:27 +0000

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

How Leaders Make a Difference

Drew — Mon, 22 Nov 2010 02:51:45 +0000

“Queen Victoria had two great prime ministers, William Gladstone and Benjamin Disraeli. Someone once observed that when you had dinner with Gladstone, you came away thinking he was the wittiest, most intelligent, most charming person you had ever met. When you dined with Disraeli, you were sure you were the wittiest, most intelligent, most charming person ever.”

Warren G. Bennis is an American scholar, organizational consultant and author, widely regarded as a pioneer of the contemporary field of Leadership studies.

Current Engagement

sharon — Thu, 29 Jul 2010 23:41:01 +0000

We’re currently serving as the Assignee in a Delaware Assignment for the Benefit of Creditors (ABC) in the matter styled Eladyrrech, LLC f/k/a Cherrydale Fundraising, LLC

On February 28, 2009, Eladyrrehc, L.L.C., formerly known as Cherrydale Fundraising, L.L.C., a Delaware limited liability company and Drew McManigle, an individual entered into a Trust Agreement and Assignment for the Benefit of Creditors. On March 3, 2009, Assignee filed a Petition for Assignment for the Benefit of Creditors pursuant to 10 Del. C. § 7381 in the Court of Chancery of the State of Delaware (C.A. No. 4403-VCP). The purpose of this proceeding is to provide for the ratable distribution of Assignor’s property by Assignee to satisfy Assignor’s debts to the fullest extent possible. During the course of this engagement and, pursuant to applicable statute, Drew McManigle was bonded in the amount of $1.5 million. Significant actions undertaken have been the on-going post-trial prosecution of a significant pre-existing lawsuit; verification of creditors claims; and administration of significant sales proceeds, including assessing future payment streams to achieve the highest possible return to creditors.

Employee Reductions-Be Careful

Drew — Wed, 08 Jul 2009 14:55:22 +0000

Astute and thoughtful cost cutting in times of crisis are appropriate and necessary, but be wary of losing key knowledge that may have taken years of training and experience to fully develop. And, that would be challenging to replace.

Common Sense, Communication & Never Do Nothing

Drew — Wed, 01 Jul 2009 00:21:13 +0000

“If it fails, admit it frankly and try another. But above all, try something.”
Franklin D. Roosevelt

There have never been truer words for business leaders in times of financial crisis when strength counts the most. Often, business leaders are paralyzed into inaction by the fear of failure, the fear of criticism or simply the fear of being wrong. And the result is that opportunities, even survival opportunities, slip away. Never do nothing…there is always something to do…even if it’s painful.

Common Sense:
Definition: Sound practical judgment that is independent of specialized knowledge, training, or the like; normal native intelligence.

How many times do you read or hear about business leaders, politicians and celebrities failing to exercise this attribute with disastrous results. As a business leader, it’s a required fundamental. Mounds of data is great, experts & counsel’s advice is needed, but at the end of the decision tree, common sense rules!

How many investor billions might have been saved if they had asked a simple, common sense, question of Bernie Madoff; “How can ensure year over year returns of 20% or more”. The common sense answer is that no one can. And, that’s a very hard way to learn a lesson.

Communication

It has been my experience during my career, that in times of crisis, one of the most important things a leader does is to communicate clearly, appropriately and often with his entire organization.

Why? Sr. leaders, managers and employees left in the dark about the realities of a particular situation or event (Is the business being closed? Are we filing bankruptcy? Is my job in jeopardy?) will be left to speculate, wonder and worry alone and in groups. And, all those negative activities among others are inherently un-productive both for the individual and for the organization. A leader in a crisis situation may not be able to divulge many things, but they can offer clarity, honest leadership and a commitment to work towards the right solution.

What Our Clients Say About Us

sharon — Sun, 28 Jun 2009 00:27:00 +0000

“I have had the opportunity to work with Mr. McManigle on two occasions in which he was asked to serve as Interim CEO of troubled companies.

I worked closely with Drew on both of these assignments, first as a general counsel of a publicly traded company with respect to a troubled subsidiary, and second, as outside counsel for a company.

I found Drew to be hard working, honest and professional in all his dealings with me, as well as his dealings with the employees and the creditors of these companies. You can count on Drew to make the tough decisions necessary to achieve the goal articulated and to give you straight forward answers as to the status of such matters.

I also found Drew to be very knowledgeable about dealing effectively with creditors and have no hesitancy in highly recommending him.”

Marc M. Mayo, Esq
Partner
Rogers Towers
Jacksoville, FL

“Drew is a first rate turnaround manager. He understands working with the various constituencies in a workout, he understands cutting costs and effecting change, and he provides excellent value for his services. It’s a pleasure to work with Drew.”

Stephen Selbst, Esq
Partner
Herrick, Feinstein LLC
New York, NY

“We asked Drew to step into a leading role at a troubled company to manage the preparation for and conduct of both a chapter 11 proceeding and a sale process. The case had a number of very difficult dynamics which Drew was able to handle quickly and efficiently. He was a pleasure to work with, respected by all in the matter and was able to get the job done despite enormous obstacles thrown into his path.”

Derek C. Abbott, Esq
Partner
Morris, Nichols, Arsht & Tunnell LLC
Wilmington, DE

“Drew is one of my go to guys to serve as an independent director or officer for my special situation transactions. He has been a tremendous asset in difficult restructuring, turnaround and distressed sale assignments.”

J. Scott Victor
Managing Director
SSG Capital Advisors, LLC
West Conshohocken, PA

“Drew is a take charge person. He knows how to analyze a company’s operations in order to ferret out the problems – and then he corrects them.”

Marilyn Simon, Esq.
M. Simon & Associates
New York, New York

“Drew is a skilled professional in crisis management. He brings a depth of knowledge built from years of successfully handling difficult management assignments and challenges. He is one of those individuals who gets it done right the first time and every time. I highly recommend him.”

Carl S. Grossman, President
Craftsman Press
Baltimore, MD

“I have had the good fortune to work with Drew when he became CEO of Southern Metal Products. As outside legal counsel to the company I found Drew to be exceptionally informed and good decision maker. Drew has a special ability to identify the problem areas and transition to a solution in short order. His background and experience allows him to apply his business acumen to numerous industries and recognize where change is required to achieve the operational goals.”

Kenneth J. Joyce, Esq
Partner
Brinkley, Morgan, Soloman, Tatum & Stanlry
Ft. Lauderdale, FL

“Drew was a truly inspirational leader, dynamic communicator and always the example of his expectations that he required from all employees regardless of their position. I am a better business person due to the time I spent working for Drew McManigle and highly recommend him without exception.”

Andrew Fortney
Former V.P. of Sales
Southern Metal Products, LLC
d/b/a All Broward Hurricane Shutters and Aeicor Metal Roofing
Ft. Lauderdale, FL