Looking back over my career, I saw many different business models and strategic outcomes. The question of career experience and how a senior executive “fits” a particular business can vary from very well, to OK to not at all. Clearly one size in executive talent, does not fit all. And not all experience is transferrable.
Two weeks ago a colleague ”moved on” as we say. During our goodbyes, she mentioned remembering my saying that I had moved around and been involved in many businesses (7 plus interdivisional moves), adding significant value to my knowledge base. And it is true. It prepared me for the strong consulting/interim management career which I now enjoy, where working with several diverse businesses per year is the norm.
So what have I learned about this element called experience?
For me, it has been that each situation truly is different (no surprise there); using a template to build complex enterprise solutions is not the answer. Every business problem has more than one solution so you have to consider several before running forward into battle.
A few examples:
I’ve seen a very successful private business that did only one P&L per year. While a bit extreme (and that business has since moved to more conventional accounting) the lesson may be to remember that the financials are only an outcome of business execution and that many astute managers already know where the numbers will land long before the accountants give the answer with exquisite precision. Certainly singular monthly financials, by themselves, are not of great use.
I’ve seen management too long at the helm lose all vigor, unable to make impactful strategic moves. They remain wedded to one vision of how the world looks and stifle any challenging new initiative. It’s very rare for a leader to remain innovative beyond 8-10 years and probably less in today’s world.
I’ve seen companies (dare I say overstaffed with head office MBA’s?) recut budgets three times per year and others which make an estimate of the month-end every Friday and then, in a four day close, estimate the month-end in a daily conference call, dissecting the minutia of the changes until day four arrives to end the silliness. To what end I say? Micromanaging through the numbers is not strategic execution and no doubt destroys management initiative and energy.
I’ve often seen companies fail to take risk or to spend capital on R & D, missing key growth and market expansion opportunities. The best managed businesses truly differentiate themselves with a strong culture of well-considered risk taking. Frequently the top manager is the enabler by taking occasional failure in stride.
Being an engineer, early on in my career I chased yet more data to support a project initiative or process recommendation. Fortunately I had one manager who made me understand that for many of the best initiatives there is rarely enough data for an iron clad answer. Understanding the overarching risk/reward element and putting a fence around the possible outcomes usually answers the best decision direction most quickly.
Finally, the key role of having the right people in place in the organization. Start with the question “the right people for what”? Focus on the few, must-do, business objectives to answer that question. Then move quickly to get the needed competencies in place. It is so common to watch companies with a management team of 65 percenters struggle to make any progress. Better to act and maybe take some early lumps for later dramatic gains. The ripple effect of competence is an astonishing motivator.
The experience of diverse business models is an unequalled school for those who absorb the lessons. A career path that includes several moves through new challenges and environments clearly adds value to the executives who go on to apply the lessons to great benefit for new employers.
John Bielby
Manufacturing & Executive Management
Visit osborne-group.com for other ideas and opinions from our Principals on a range of topics. Their views are their own and do not necessarily represent The Osborne Group’s perspective. The Osborne Group provides interim executive management, consulting and project support across all sectors and over a broad scope of service areas.
