Matteen AfridiNasir AfridiNadar KhattakRehan KhattakNaveed Zeb

The Presenters

PICKING THE RIGHT TRANSITION STRATEGY

Michael D. Watkins

Overview

Transition Strategy The STARS Framework The two important business situations Organizational change Personal change

Transition

A transition is a move from one controlling position to another

Transition Strategy

The overall approach to make changes to move the organization in the direction of the strategic vision

Usually it is defined by a step-at-a-time process

Transition into new leadership roles

The most challenging time in the professional lives of managers

Leaders in transition mostly rely on past strategies that worked for them. That’s a mistake!

Executives in transition must gain a deep understanding of the situation at hand

Transition into new leadership roles

Otherwise, “people with hammers will treat everything like a nail”

The author suggested STARS Framework to asses the situation you are moving into

By using STARS Framework one can better understand the organizational changes needed

STARS Framework

A Model, presented by Michael D. Watkins that discusses the situations businesses face

Primarily, five (or mix of five) situations Acronym for Start-Up, Turnaround,

Accelerated Growth, Realignment, and Sustaining Success

Start-Up Turnaround Accelerated Growth

Realignment Sustaining Success

The STARS frame-work

Have you inherited an organization or project that is being launched as a start-up venture, facing crisis and in need of a turnaround, vaulting into accelerated growth, drifting into difficulty and due for a realignment, or working at sustaining success as it confronts maturity? The situation (or mix of situations) should influence how you approach your leadership transition.

Assembling the capabilities (people, financing and technology) to get a new business or initiative off the ground

Saving a business or initiative widely acknowledged to be in serious trouble

Managing a rapidly expanding business

Reenergizing a previously successful organization that now faces problems

Coming on the heels of a highly regarded leader with a stellar record of accomplishment

Challenges

Building strategy, structure, and systems from scratch without a clear framework or boundaries

Recruiting and welding a high-performing team

Making do with limited resources

Reenergizing demoralized employees and other stakeholders

Making effective decisions under time pressure

Going deep enough with the painful cuts and difficult personnel choices

Putting in place structures and systems to permit scaling

Integrating many new employees

Convincing employees that change is necessary

Carefully restructuring the top team and refocusing the organization

Living in the shadow of the former leader and managing the team he or she created

Playing good defense before embarking on too many new initiatives

Finding ways to the business to the next level

Opportunities

You can do things right from the beginning

People are energized by the possibilities

There are no rigid preconceptions

Everyone recognizes that change is necessary

Affected constituencies offer significant external support

A little success goes a long way

The potential for growth helps to motivate people

People will be inclined to stretch themselves and those who work for them

The organization has significant pockets of strength

People want to continue to see themselves as successful

A strong team may already be in place

People are motivated to continue their history of success

A foundation for continued success (such as a long product pipeline) may be in place

Major focus…

The article has mainly focused on the two of them Turnaround Realignment

Watkins’ example

Watkins elaborated all his theme with the help of the Stephen Eizenberg, a German born executive, example.

Stephen in turnaround

In the European manufacturing operations a few bold decisions were needed

The firm was facing some severe problems and some instant remedies were needed.

So he acted more like a hero and worked decisively

Those bold steps were bitter at the beginning but were fruitful later

Stephen in realignment

Later, in the American operations, Stephen was chosen as the executive vice-president of the supply chain

Here, the problem was not that evident and was vague

He didn’t take immediate decisions He had to know, the problem, himself

and to make the people aware about it

Organizational change

The prior set-up for the organizational change should be considered regarding the turnaround and realignment.

Six fundamental principles

Organize to learn Define strategic intent Establish A-item priorities Build the leadership teams Secure early wins Create supportive alliances

In turnaround…

You need to focus on the: Strategy Competitors Products Markets Technologies

And above all… the Core business!!

In realignment…

You need to focus on the: Culture Politics Skills Beliefs

And above all… the overall scenario!!

As a leader, you also need to be flexible enough to mould yourself according to the situation and need to know your mind-set and your strengths and weaknesses.

Personal change

Self management

The personal leadership strategy greatly depends upon the following pillars Enhancing self-awareness Exercising personal discipline Building complementary teams

In turnaround…

You need to be: More specific Objective Clear Decisive Bold

And above all… more like a HERO: to act quickly!!

In realignment…

You need to be: Diplomatic Less ego-driven Persuasive Building consensus Patient Systematic

And above all… more like a STEWARD: to act deliberately!!

The Presentation Summary

Leaders in transition rely on the skills and strategies that worked for them in the past. That’s a mistake.

They should better refer to the STARS Framework to know where exactly do they stand

The STARS Framework gives a clear and vivid idea, most of the business situations, we often face

Both Organizational and Personal Changes should be made according to the business situation

THANK YOU!!