LET’S REVISIT THE STORY
Have you ever watched one of those movies where you could choose from a variety of endings? Remember Doug from the Prologue? Let’s now assume Doug subscribed to the principles set forth in this book, in which case the narrative unfolds differently. We will pick up the scene when Doug reenters the boardroom.
Charigan’s Board Chairman, Hal Barchans, greeted Doug and motioned him to the seat on his right.
“Doug, in our executive session, the board talked about the last two years. We appreciate the excellent financial results you posted this year. What we want to acknowledge even more are some of the changes you’ve made. As we all know, you got off to a rocky start. Your decision to centralize all operations in New York, while not without some merit, was pronounced on the organization. People thought you were power hungry and wanted to control everything. They didn’t understand why you were changing something that had arguably worked extremely well for the last decade. The whole company was aware that you and Carl were really at odds over these changes. At first, you didn’t win over the folks who make this company successful, and all the board heard about was mass defections on the field.
“We know that you believed strongly that we had to get control of our expenses, create some efficiencies, and eliminate a lot of the redundant systems in our regional offices. You told us that you believed the old guard was too entrenched and need to be shaken up. You made it clear to us that you believed the only way to accomplish these ends was to centralize operations, but the amount of turbulence this created surprised us all.
“You recognized this, too, and your decision to slow down and take stock of the organization’s readiness for these changes was excellent. Charigan has a long history of involving those stakeholders who are closest to our customers, which you decided to do. Going to Carl and asking for his help took some humility. We respect you for this.
“Your willingness to draw on the collective wisdom of your field leaders has borne a lot of fruit. The solution of keeping our regional sales structure, but centralizing IT, Distribution, and Accounting seems to be working out well. This year’s all-employee survey affirmed you for listening and being willing to change. The organization sees you as a strong leader but also committed to getting the folks with you. By the way, it was a nice touch to feature Carl at the annual stockholder meeting. Overall, the board is pleased with the progress organizationally, and as I said before, we like the earnings report! You are making a significant impact. Congratulations! Keep up the good work.”