7 Year Makeover

I was listening to Ray Johnston's talk on September 25 and he mentioned a luncheon with a businessman.  The guy had been successful for 40 years, but he said success can be one of the worst things that can happen to a company.

Why?

Because you get complacent, set in your ways, bureaucratic, stale...  So what do you do?

This guy's solution was to "totally change everything" every seven years.  He seemed to credit their lasting success on this principle, although certain aspects of his business and leadership systems must also be key to their enduring impact.

NOTE:  "Totally change everything" does not mean every single thing, but it does encourage us to take aggressive action to fully review our business and consider better ways to do things.

When is the best time for your 7-Year Makeover to occur?  When you are wildly successful.  Certainly there is tremendous value to your company to take similar action when growth is flat or your organization is struggling.

Actively seek input from your employees and clients.  Get outside feedback from a consultant, vendors, clients, mentors, etc. as you consider changes also... BUT consider all input carefully.  Not all ideas are good.
 
The changes you make should be consistent with your identity (see last week's post), but enable your organization to grow into new opportunities.

Until now, I have not known anyone who does this... but I do not a lot of companies who should have been doing it!

The ROI from this type of action is HUGE and it provides a significant competitive advantage.

How about you?

Be an Intentional, Systematic, Servant Leader.

David Russell, CEO

Success With People, Inc.
MANAGEtoWIN, Inc.

MEETING IDEAS

Too many companies are stale, even when they are succeeding.  Think of your vendors, even some of your largest suppliers, and consider how they would benefit from a 7-Year Makeover (they probably needed it ten years ago). What would happen to HP if they really changed things while retaining their core identity?  What about Microsoft?  Will Windows 8 be their tipping point, or will they be unable to break out from their bureaucracy?  What would happen to a major IT distributor if they really helped reseller partners build a stronger business? I do not want to offend anyone.  The fact is every organization can be better, but earlier this month I met an IBM guy who was feeling sorry for HP because they so desperately need a 7 Year Makeover.  He wondered, how can Meg Whitman, who has no channel experience and has been on HP's Board approving actions through their recent problems, make a difference? The fact is too many organizations are stuck in the past and filled with people who are distracted by working in their business instead of on their business. So ask your team: 1.    When was the last time we really looked at everything we do and made significant changes? 2.    We are rapidly approaching 2012.  What is the risk of doing a 7 Year Makeover now so our 2012 is our best year ever? 3.    What could we gain from a total makeover of our company culture and business activities? 4.    Do we need to hire someone - David Russell or another catalyst for change who understands our business?  If so, who is that person, who will contact them, and when will we make a decision whether to invest in their services? 5.    What is the ROI on investing in change vs. the cost of doing nothing?  What do we lose if we do not change anything significantly?  Discuss these types of costs:  Opportunity, employee productivity, competitor takes away market share, we lose top employees because they are not challenged, technology changes and it significantly hurts us, ...  The bottom line is that doing nothing risks your entire company.  If you need help, contact me.