In Bravura Partners’ experience, each business transformation engagement is unique in some ways, but share many factors in common in other cases. In reference to the common themes between restructuring activities, there are five tasks that should always be completed to ensure sustained, positive change: engage advisors early; create transformational champions; set appropriate targets; have a clear and detailed plan; and recognize the importance of what Bravura refers to as “engagement immersion”.
The first step is simple: don’t wait. Whether a company is distressed or needs immediate change due to an acquisition opportunity, it is critical not to be over cautious and delay action. As a stopgap, a business can always approach an advisor early on as to whether the time to act is imminent.
Once the decision has been made to embrace change, creating an “accountability plan” is of paramount importance. This plan, whether captured on a whiteboard or in a spreadsheet, for instance, should list the following in the greatest detail possible: what is the action, target, or goal; when does it start and when does it finish; and who is the owner, or “champion” for the specific task. Every action must be married to the person accountable for it.
Engagement immersion. At Bravura Partners, we have found that one thing above all other things makes the difference between short-lived change and sustained change. The advisors that are hired to lead the engagement and take ownership of the project’s objectives must have boots on the ground. Some clients, however, push back on this point. The fact of the matter is that people are smart, and no matter at what level they operate, the waves of change can be felt by all. And as we all realize in life as in business, not knowing can be a far greater driver of anxiety and in turn a drop in performance and a willingness to cooperate.
Read more about the author, Martin Quigley.
