Surviving Huge Growth by Driving Huge Change
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Transcript of Surviving Huge Growth by Driving Huge Change
Surviving Huge Growth … … by Driving Huge Change
The art & science of revolution!
Rusty Walther Senior Vice President Global Support
Page 2
A quote for all seasons …
“Most of our obstacles would melt away if, instead of cowering before them, we should make up our minds to walk boldly through them.”
Orison Marden (1850-1924)
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A quote for all seasons …
“Most of our obstacles would melt away if, instead of cowering before them, we should make up our minds to walk boldly through them.”
Orison Marden (1850-1924)
“Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”
Bill Gates (1955 - ?)
and reasons
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Agenda
– Building a battle plan– Communication– Knowing your enemy– Understanding the terrain– Waging the war– Declaring victory
– Is it “D-Day” … or “Mon-day”
Page 5
Case Study #1: Network Appliance GSC
Global Support Centers – 400+ employees – 50,000 cases per month
“BIG BANG”
2 Fiscal Quarters!Execution Timeframe:
Existing “Follow-The-Sun” model– Four “cookie-cutter” support centers rolling cases
every 6 hours– Hierarchical support model … a technical “cast” system
Loyal customers – Miserable support experiences– Complex cases … long average case age– Kill & Ignore Loop– Inadequate escalation management
Decision to change– Consolidate into a 24x7 Flagship Center in RTP North Carolina
• All English support and all global Escalation support• “Regionalize” within that consolidated model• Embedded escalation support into multi-level “clusters”
– Consolidate all CSR operations (non-technical) to Bangalore, India– Transition EMEA and APac sites to Level 1 Local Language only– Shut down Sunnyvale CA Support Center (largest)
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Case Study #2: Americas TPM
Partner-based On-Site Response – 12,500 RMA’s per month – 40% with “human” dispatch
“BIG BANG”
2 Fiscal Quarters!Execution Timeframe:
Existing Model– Seven different TPM’s all regionally controlled– Very poor training – virtually no follow-up– Linear price model – skyrocketing costs
Miserable support experiences– Poorly trained people …– Working on mission-critical systems …– In a world where costs were huge and controls were non-existant
Decision to change– Consolidate into a single TPM– Redesign the training and certification model– Change the very nature of how and when we deploy TPM’s– Move to a “Level of Effort” vs. “Insurance” pricing model– RFP, Select, and Execute
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Factors that drive big change
– “Nature abhors a vacuum.” Author Unknown
– Merger or acquisition activity– Timing of a significant business event– New hire license … like a “Hall Pass” for change– Sizing … growth or reduction
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Assessing your Change Acceptance Index
21-35: Think Hard 35-50: Go For It0-20: Stay at Home 35-50: Go For It0-20: Stay at Home
Is my management team strong and resilient?
Does my team have “big change experience”?Will the financials support either padding or variance?
Is my boss well-respected in the company?Do I have intelligent HR and Finance support?Does the larger company feel the need for change?
Are there any dissenters with heavy “clout”?Do historical metrics indicate the need for change?Can I clearly articulate what “success” looks like?
Do I have a significant window of opportunity?
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Understanding where you are … … will drive your project decisions
Phase 1 – Construction– Philosophy: Whatever it takes to move product– Focus: Building and defining a capability– Programs: Remedial Maintenance– Service Margins: Negative
Phase 2 – Execution – Philosophy: Manage and scale for volume– Focus: Flawless execution – Programs: Premium Support– Service Margins: Positive
Phase 3 – Differentiation– Philosophy: Service that drives product sales– Focus: Professional Services– Programs: PS / Consulting / NIS– Service Margins: Maintenance = Very Positive
PS / Consulting / NIS = Break Even
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First things first
Communicate a well-managed, phased plan
– The journey will never happen if you can’t sell the destination– Speak with precision and certainty (even if you’re terrified)– Get 360o excitement around your project
Visualize the end state… then sell it
Lobby for the resources to do the job– Money, People, Assistance– Don’t start the journey without gas in the tank
Choose your friends wisely … show them the LOVE– CFO, CIO, HR-VP, Controller, Facilities, etc.– Make them feel like invested partners
Identify your enemies early– Human and non-human
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The importance of “Phased Planning”
Phase 1: CapabilityPhase 2: CoveragePhase 3: Leverage
Q1: Build the planQ2: Kick-off executionQ3: Move most resourcesQ4: Assess and adjust
Q1: Hear the planQ2: See the activityQ3: Feel the improvements hereQ4: Customers feel the positive change
Phase 1: Prepare RFPPhase 2: Select VendorPhase 3: Build the PlanPhase 4: Execute
Sets expectations
Indicates linear reasoning
Avoids public specificity
Calms jittery nerves
Allows room for adjustment
Provides a communications framework
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Communication is the key
Speak with authority … show total confidence
Create a central information repository
Detailed milestone communications
Never sacrifice Honesty on the alter of controversy avoidance
Build your plan with sufficient detail to withstand scrutiny
Be prepared to address Hyper-sensitive issues
– RIF’s– Relocation– Job reclassification– Task adjustments
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Know (and address) your “real” enemies
Suspicion of deceit
Personal uncertainty
Feelings of powerlessness
Lack of information or timely updates
Failure to address “How does this impact me?”
Self-interest
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Keep your own house in order– Every manager knows “the script”– Passive-aggressive behavior is dealt with
swiftly and severely– Everyone plays their position
• Execution is every manager’s responsibility• Communication is every “leader’s”
responsibility• Exploit organizational “thought leaders”
– get them involved
Study the terrain
Know your neighborhood– Align with influential leaders – update them often– Partner with HR and Finance – don’t fight them
Obsessively watch the horizon– “Only a fool falls in love with his own strategy.”
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Winning is about “Execution”
You planned it… now do it
Credibility comes from hitting early milestones– Celebrate incremental success (LOUDLY)
Do not allow “speed-bumps” to become “obstructions”– NEVER let them see you panic
Minimize exceptions– They’re contagious and spread like the Plague– Build a management framework around exception-handling
Never miss a chance to tell your story– The “Ego-Impaired” should get remedial training in self-promotion– This is no time to be shy
Flawless execution on your 360o communications plan– Constantly remind everyone “why”
– Don’t let them forget what success looks like
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Know when and how to celebrate
Define success metrics and manage to them– It’s hard to declare victory if you don’t know where the finish line is
Publicize and enjoy hitting milestones– Recognize individuals and teams for everything you can imagine –
this is no time to be cheap
Show your face … the airlines will love you for it
Avoid the “never-ending” project– Declare victory when you’re done– Celebrate BIG … make everyone feel special
Be ready with a new challenge, theme, project, etc.
– Idle minds are the devil’s workshop
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10 Most Common Mistakes
1. The amazing disappearing leader2. Saying “I don’t know.” (Use the alternatives)3. Allowing the view of success to fade to black4. Failing to address objections from stakeholders5. Mistaking consensus for unanimous consent6. Too many exceptions or not planning for exceptions7. Fear of making needed personnel changes8. Under-communicating to a key constituent group9. Allowing the objective to seem unattainable10. Losing focus on the human element
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2. Has my leader helped me connect my job to that vision? 3. Do I trust my leaders and believe they are competent?4. Am I fairly compensated for the job that I do?5. Am I publicly praised for individual and team accomplishments?6. Do I receive regular performance coaching on development areas?7. Does my leader know my career goals and is he/she helping me
achieve them?
1. Do I understand the vision and future of my company and department?
About that “Human Element”
The employee that can answer “Yes” to these seven question …
… will stay with you through ANY change activities.
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Be smart about “consulting” help
Don’t embark on the “Guilt Trip”– Pressure from friends of the past
Make sure it solves a “real” problem
Negotiate to succeed– Cancellation clauses– Back-load all the margin– Check references - Review examples similar to your project
• If they can’t produce them …
Task-oriented consulting ONLY– Clearly define deliverables and pay ONLY on deliverables– Construct a milestone-based timeline
• Tasks, resources, dependencies, costs– Skip the “fuzzy analysis” projects
• There’s way too much data out there (for free)
Page 20
Just for fun … a lesson in “Partner-Speak”
“I saw this morning that you just closed a new round of funding.”
“If I don’t close a contract soon, it’s back to working the “Drive- Thru”.”
“At least I hope he does when he returns the VoiceMail I left him about 5 minutes ago.”
“Can I have some of your money … PLEASE ???”
“I’ve been watching your company for quite some time.”
“Let’s explore a mutually beneficial business relationship.”
“Your CEO suggested that I give you a call to discuss our services.”
“Leveraging our services creates a new paradigm that scales well and produces great value-add.”
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Recovering from setbacks
– “It’s not a problem if you can solve it with money. It’s a budgeting exercise.”
Rusty Walther (1958 - ?)
– Doing so publicly makes you “human”
Good
Fast Cheap
Pick any Two
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Case Study #1: Center Consolidation
Customer Satisfaction Improved by 5%Same-Day Resolution Improved by 140%Speed of Answer Improved by 120%Average Case Age Improved by 40%Average Time to Resolve Improved by 60%Average Cost Per Case Decreased from $275 to $120New Case Volume Increased by 45%
– Finished ahead of schedule and well under budget• Decision to “Expense” vs. “Restructure”
– 60% of the organization either relocated or changed roles
– Highest attrition was Director-level (5)• All of it was induced vs. voluntary
– Natural attrition below historical norms (sub-5%)– Total of two (yes … 2) severance packages delivered– All key performance metrics driven in a positive direction:
Project completion in April of 2006
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Case Study #2: TPM Consolidation
Cost of transition ROI pay-back in 1 quarterCost per dispatch Decreased by 60%
Growth costs 20% of prior levelAnnual cost savings ~ $8 Million USNoise-level Drops to “Zero”
– Selected IBM Global Services– Built a detailed plan
• Rewards for delivery – penalties for mistakes– Finished ahead of schedule and well under budget
• Actually accelerated during execution– 3-day hands-on class with mobile labs– CD-based “visualization tool” with online updates– Team-based management reviews
Project completion in August of 2007
Mistake rate 5% of previous rate
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Final words of advice
You can never listen too much– “When people talk, listen completely. Most people never
listen.” Ernest Hemmingway
You can never communicate too much– “The problem with communication … is the illusion that it has been
accomplished.” George Bernard Shaw
In tough times … leaders must be larger than life– “Time is neutral and does not change things. With courage and
initiative, leaders change things.” Jesse Jackson
– “Every battle is won or lost before it is ever fought.” Tsun Tsu
You can never plan too much
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Questions …