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Corp A Interview Summary

Date of interviews:

Background regarding the interviews.
How to get the most out of this summary.
High-Level Summary
Observations and Assessments
- Our observations and assessments of areas that need to be addressed to forward the future of Corp A.

Background regarding the interviews:

As preparation for our engagement we conducted 60-90 minute one-on-one interviews with Corp A leader, all members of the senior team, plus a handful of managers, supervisors and employees. The interviews were confidential. A promise was made in each conversation that no quotes would be attributable to any one person. We explained that we were looking for themes, shared views, areas of alignment and non-alignment, rather than individual viewpoints. Having said that, individual viewpoints were taken into account in our observations and assessment.

Although this could be read as a comprehensive assessment of the Corp A organization, it is not. We were specifically looking for the aspects of the current culture, dynamics and practices that would prevent, slow or inhibit any meaningful change or improvement effort. Hence our findings are very heavily weighted towards what is missing and what is dysfunctional, rather than what is great and working well. The intention of this summary is to capture a snapshot of the Corp A Team′s current condition and provide immediate access to moving the organization rapidly and effectively towards meeting its future challenges.

How to get the most out of this summary:
1. Read the summary several times.
2. Remember that it is not a comprehensive summary of everything about the Corp A team but rather a very focused view on what is missing and sub-optimal. We could probably have produced an equal report of only great things.
3. As you read it don't conclude anything, don't react to anything, and don′t do anything with it - just get it and own it. The more you own it the more powerful it will be for you.
4. Don't try and figure out 'how to fix it' or 'what to do with it'. Also, don′t try and address any aspect of this with anyone outside the team. The work we do together will allow you, as a team, to generate and align on a bold and compelling future for your organization. In that new context some of the issues described in this report will dissolve or fade into the background. Some may be more pronounced than ever and, together, standing in your commitment (not reaction), you will figure out what and how to deal with them.
5. Don't share this report with anyone outside the team because they will not have the context in which to understand it responsibly the way it is meant. When we are together we will discuss how to use this with the rest of the organization.

High level summary:
1. There is an extremely high degree of commitment, care, loyalty, and pride in Corp A at all levels.
2. Corp A, starting from the leadership team is too operationally and tactically focused.
3. The level of cohesion and alignment within Corp A needs to improve.
4. There are political tensions, as well as trust and jealousy issues within Corp A.
5. The level of communication within the leadership team is not effective.
6. The level of alignment and trust between Corp A leader and the leadership team need to improve.
7. The organization does not share a clear and compelling strategic vision and set of objectives that everyone is clear about, aligned behind and committed to.
8. The relationship between the leadership team and the management/supervision team needs to improve.
9. The Corp A culture is high spirited and family-like but it lacks high performance.
10. There is insufficient focus on mentoring, coaching, and developing talent in Corp A, starting from the leadership team.
11. People are pleased about the Systems improvements and frustrated with the level of their utilization.
12. While customer service is generally high there is a need and opportunity to step it up.

Key observations and assessments:
1. There is an extremely high degree of commitment, care, loyalty, and pride in Corp A at all levels.
  1. Many shared with pride about the lower-than-normal turnover rate in Corp A despite the fact that much of the work is tedious and repetitive.
  2. Everyone described the atmosphere within the Corp A organization as a young family-like environment, which draws people to want to work there.
  3. We could tell by people′s comments and tone that there is great pride among everyone about turning the business around and elevating profitability.
  4. Our overall impression about Corp A is that for the most part it functions well, which is what enabled it to turn itself around and become profitable in the last three years. Having said that, in most cases the culture, mindset and abilities that brought an organization to its current level of success are not sufficient to take it to the next level. And, this is the case with Corp A. There are areas where improvements and breakthroughs need to be made in order for Corp A to create and fulfill the next phase of its growth and success. Most of our observations and assessments in this documents were made from the perspective of ‘what will enable Corp A to go to its next level’ rather than ‘what is completely broken about Corp A and needs to be fix’.
2. Corp A, starting from the Leadership Team, is too operationally and tactically focused.
  1. Almost all Leadership Team members, managers and supervisors seem to acknowledge that Corp A, including the Leadership Team, is extremely (overly) oriented around — and consumed by — the operational side. It seems that the organization lacks the focus and ability to have effective strategic and creative conversations about the future. People stated that it is not uncommon that dialogues that start as strategic ones quickly migrate to be more about the short-term details and issues of the operations.
  2. At the same time it seems that not everyone is aligned about the right balance between strategic and long term vs. operational and short-term focus. Most emphasized that the future depends mostly on strategic thinking and the ability to generate new products, services and directions while others feel the most important thing is to ensure operational focus with the existing products and services.
  3. Almost everyone pointed at the need to develop innovative products and services as one of the biggest challenges for Corp A. At the same time several people expressed a concern about not enough focus and orientation toward Strategic innovation, R & D, creativity and development of new ideas in the service and product arena. While everyone acknowledged that Corp A leader does spend a large part of his focus to that end, and that he has done a good job thus far creating ideas many feel that it is not enough to have just Corp A leader play that role.
  4. People feel that the Leadership Team has to step up to a higher level of Strategic and innovative thinking, plus involve others in the same process, in order for Corp A to truly succeed. Several people referred to the current process for creating new ideas as ad-hoc rather than formal, deliberate and structured.
3. The level of cohesion and alignment within Corp A needs to improve.
  1. Several people expressed sentiments about the fact that Corp A team members often more focused on their own objectives, priorities and agendas rather than looking first at Corp A as a whole. Even though there is an overall collective direction it seems that the current focus often makes it challenging to focus on it.
  2. Some people described the mindset between Department A and Department B as "us" vs. "them". People shared that when projects are launched in one department they are related to as "their project". Some stated as example that the new product X is often referenced to as "Alan′s project" rather than "Corp A′s project" or "our project".
  3. We heard some opinions about the fact that there is too much duplication of functions and services between Department A and Department B. Some believe there is a need and opportunity for greater synergy, integration and cross collaboration (sales, training, marketing etc). Others believe it is insignificant or impossible to integrate because of the differences in disciplines and services.
  4. It seems that for the most part people from Department A, at all levels, know what is going on in their department but not in the Department B, and vice versa. While it is understandable that people will be more focused, involved and oriented in their own department it seems that there is an opportunity to raise the collective awareness, identity, commitment and passion of Corp A as a whole. Doing so may also lead to more cross thinking, sharing, best practice sharing, contributing and integration.
4. There are political tensions, as well as trust and jealousy issues within Corp A.
  1. It seems that there are some tensions between the Department A and Department B team members, including the department heads themselves, at times, which are political and jealousy related. People at all levels stated that these dynamics have to do with processes and management style differences between organizations, as well as around promotions, raises, titles and positions that were approved in one department or another. Many tied the tension between the department heads to jealousy and rivalry around Corp A leader′s attention and favor.
  2. People shared examples of situations in which a promotion and raise in one organization lead to major jealousy, upset and dispute with members of the other organization. It seems that the political sensitivities around ‘who gets what’ in Corp A could hinder (perhaps is hindering already) the Leadership Team′s judgment and ability to structure the newer ‘high growth’ opportunities with the appropriate high-risk/high-gain compensation plans because it is different than the more mature ‘low-growth’ side.
  3. It further seems that even though for the most part members of the Leadership Team sincerely respect and like each other there is a need and opportunity to create deeper cohesion and trust within the team.
  4. While managers and supervisors relate to the Leadership Team for the most part as a well functioning team they also see the tensions within the Leadership Team. Some seem to have picked their leader′s side while others are frustrated about being caught up in the middle repeatedly. It seems that most have accepted them, and are resigned about these dynamics improving.
5. The level of communication within the Leadership Team is not effective.
  1. While everyone seems to generally respect the Leadership Team members and think that the Leadership Team operates well together people at all levels shared that when debating issues the Leadership Team members often ‘talk over each other’ without listening or respecting each other. Many shared about the shouting matches that go on between Leadership Team members at their meetings behind closed doors and at times on the floor in front of managers and employees. Several Leadership Team members described this dynamic and style as "passionate" and "open" and related to it as acceptable and even productive claiming that it raises issues and leaves no negative residue. Plus, others pointed out that even with this dynamic the Leadership Team is able to achieve things. At the same time most referred to this dynamic as exhausting and draining to deal with, as well as undermining and frustrating to the organization. Some managers expressed frustration about being repeatedly caught up in the middle of this intense dynamic. It seems that the Leadership Team underestimates the negative impact of this in terms of their ability to address and resolve issues quickly and effectively, as well as work in alignment to take the organization to the next level. In addition, this dynamic, in many cases, sends a negative message to the larger team about the unity of leadership (people stated that), hence reducing confidence and elevating frustration at lower levels.
  2. A few Leadership Team members described the level of communication within the Leadership Team as effective while most others described it as ineffective. It seems that overall the team operates with a good level of communication when dealing with the day-to-day business issues and decisions. However, it also seems that the team avoids the tough, uncomfortable debates about the dysfunctional issues and challenges mentioned in this document. Furthermore it seems from people′s comments that even when issues are raised the team isn′t always effective at addressing and resolving them, as well as reaching alignment and acting as one cohesive force. Some examples that were mentioned are — product A and product B which some said don′t have the Leadership Team′s real and full alignment even today.
  3. While for the most part the Leadership Team is viewed as a well functioning team it seems that most have frustrations about the level of open-mindedness, responsiveness, accommodation and support they get from leaders. And, while these sentiments have been around for a while people haven′t mustered the initiative and courage to address them in a sufficiently open, honest, direct, productive and effective way. It seems that doing so is not part of the current culture.
6. The level of alignment and trust between Corp A leader and the Leadership Team need to improve.
  1. There is a great deal of respect and admiration for Corp A leader within the Leadership Team and throughout Corp A. We heard many accolades about Corp A leader′s talents and personality as a visionary, innovative and caring leader.
  2. At the same time there are several areas of frustration that were brought up repeatedly throughout the interviews about Corp A leader′s management style and philosophy from people at all levels. Those included sentiments such as (not quotes): (1) Corp A leader is somewhat distant from the team and not fully a part of it, (2) he often does not share important information with his team, at times when needed, or include them sufficiently in key directional decisions and strategies, (3) at times Corp A leader′s style is authoritarian as if to assert his position as the boss, (4) at times his expectations and demands are too high, as if he doesn′t understand what it takes to make things happen, and (5) Corp A leader is often critical of situations and people (because of his high standards) hence he doesn′t acknowledge and recognize people around him enough, plus he can ‘black-list’ people when they screw up.
  3. In continuation of the paragraph above — from comments made by Corp A leader and his people it seems that there are some tensions and frustrations on both sides about expectations and style. For example, some regard Corp A leader′s expectations regarding meeting deadlines, at times, as unrealistic and unreasonable (‘he doesn′t get what it takes...’). At the same time Corp A leader seems to be frustrated by what he views as the excuses people give when missing deadlines. He seems to view the issue as insufficient levels of tenacity and drive to overcome hurdles and keep deadlines ‘no matter what’.
  4. People at all levels shared examples about the ongoing tension between Corp A leader and his COO. Some referred to it as ‘Corp A leader creates ideas and the COO shoots them down’, while others have a more positive spin of ‘Corp A leader is the dreamer and the COO brings realism to it’. While everyone understands the history behind this dynamic most people are frustrated with it and feel that it has an negative impact on the spirit and effectiveness of the Leadership Team, as well as the organization as a whole — it seems to take up a lot of energy, focus and time from people (directly and indirectly).
  5. As stated above there is deep respect and care among the Leadership Team toward Corp A leader. At the same time it seems that there is also some apprehension and caution (perhaps even a bit of intimidation and fear) on the part of the team regarding being able to criticize, push back, coach and give feedback to Corp A leader about issues that he feels strongly about, or about his own leadership and management style, which people are sometimes frustrated by. There seems to be a sentiment that if you criticize Corp A leader he′ll get defensive, or shut you down, or put you on his black list.
  6. It seems that some of the frustrations and issues outlined above have been around for a while and even though most people seem to understand them very well, plus some people have made attempts to bring them up in the past, they haven′t been effectively addressed and resolved through communication.
7. The organization does not share a clear and compelling strategic vision and set of objectives that everyone is clear about, aligned behind and committed to.
  1. Corp A leader has a sense of the vision in his head and he has shared some of it at different times with team members. In addition, most people could express in general common-sense terms the high level vision and direction Corp A should be pursuing — i.e., "growth", "grow profitability", "come up with new services and products" etc. At the same time, the organization has not translated those concepts into a shared commitment and plan that everyone is completely clear about, aligned behind, committed to, accountable for, and on fire about.
  2. It seems that there isn′t sufficient strategic alignment about the direction and approaches for growth, even at the Leadership Team. Some feel the department A business is a completely mature business that cannot be grown and can only be maintained until it goes away — hence the main focus should be on maintaining the existing with excellence. Others believe that there is great opportunity to take over market share from competitors by coming up with unique products, features and services that position Corp A as a unique value-add vs. a commodity — hence the main focus should be on R & D, business development, marketing and sales.
  3. Some are excited about product A and believe it is the right initiative to take Corp A to the next level while others are more hesitant and skeptical about its viability and success. While product A is in its infant stages and no one really knows if it will succeed, it seems that there is an opportunity for the team to rally around it with greater alignment, commitment and passion.
  4. In addition to paragraph 3b several people said that there are no clear strategic criteria against which to determine and prioritize new ideas, projects and products. And what determines if a new idea should be taken on or not is if Corp A leader liked it or if it fits Corp A current skills.
  5. While most managers and supervisors could articulate in very general, vague and high level terms the direction of Corp A all acknowledged that they don′t know what the exact vision, objectives and strategies for growth are. Several people said they don′t know what the annual objectives are. Some seem to think and hope that the Leadership Team knows the exact direction and have not yet shared it with the organization while others believe the Leadership Team has not figured it out yet.
  6. When asked most people couldn′t really remember the Vision, Mission and Values that were created for the Corp A and are hanging on the walls around the office. It seems that these exist more as words on the planks around the walls rather than as meaningful benchmarks that shape the spirit, mood and behaviors of the team members.
  7. Several people stated that Corp A should take a more aggressive approach in developing business within the wider HQ organization.
  8. Many people also shared about the frustrations and challenges of dealing with HQ as a non-core business, especially given the more entrepreneurial nature of Corp A and the need to invest in new ideas and business. Everyone seems to hope that reporting to a new HQ leader will make life easier.
8. The relationship between the Leadership Team and the management/supervision team needs to improve.
  1. Most managers and supervisors expressed their desire and commitment to be more informed about, and involved in the company′s direction as well as in strategic issues and challenges. Managers believe that doing so would only enhance the morale and level of ownership, commitment and accountability toward Corp A′s future.
  2. Most managers and supervisors described the quarterly management meetings as necessary and somewhat useful. At the same time most managers and supervisors seem to still feel that they are not sufficiently informed, updated and included in key issues, challenges and decisions, including those about which they are the experts, or which affect them.
  3. Most managers, supervisors and employees named communication as the biggest or one of the biggest issues within Corp A. Most employees seem to be frustrated that they are not informed, updated, included and communicated to by their supervisors and managers.
  4. It seems that most of the Leadership Team members do not believe that their managers and supervisors are capable of engaging in strategic level conversations, or stepping up to higher levels of leadership, initiative and accountability. It further seems that this overall perception has contributed (and is contributing) to the lack of leadership behavior on the managers′ and supervisors′ part.
9. The Corp A culture is high spirited and family-like but it lacks high performance.
  1. We heard many sentiments from managers, supervisors and employees about insufficient meetings within departments and groups. While the logistical challenges of getting everyone together plus workload were brought up as the key obstacles people seem to feel that some of the dysfunctional issues between and within groups have been perpetuated because of lack of meetings, and having them should be a higher priority to resolving issues and building teamwork, communication and performance.
  2. Most people pointed to communication as the biggest cultural challenge. The key areas that were mentioned as needing the most improvement were: (1) the working dynamics between the sales and customer service — mutual frustrations about insufficient levels of collaboration, partnership, trust, respect, performance and communication; (2) the morale within department A — insufficient teamwork between the product A and product B sales teams, as well as supervisors and staff; (3) communication between sales and IT — we heard several examples about frustrations in the sales team about insufficient support and partnership with IT.
  3. When asked most managers and supervisors described the culture at Corp A as risk-averse. Many said that while the environment has a family-like atmosphere there is also a sense that when mistakes happen people are blamed too quickly, and at times there is retribution. This has lead to a culture in which for the most part people (not everyone) avoid taking initiative and risk, as well as they tend to make excuses and blame others, at times, instead of doing what it takes to get things done. Plus, people are afraid to raise issues, push back and challenge the status quo.
  4. While some people brushed the issue of gossip off many described the environment as having too much negative gossip at all levels, including the Leadership Team. Most of it seems to be related to frustrations and jealousies about what one group or department has that another doesn′t (promotions, adherence to policies and standards, management style, promotions, compensation, etc).
  5. Several people also said that people′s biggest frustrations are that they don′t feel heard and valued.
  6. While everyone acknowledged that for the most part morale has improved over the last year (in some places it seems to have deteriorated) it seems that there is still a great need to maintain and improve it, on both sides of the house, especially given the nature of some jobs that are extremely tedious and repetitive, plus some of the current headcount challenges that Corp A is facing (especially department A). In order to meet this challenge it is critical that Corp A get rid of any politics and build a higher level of trust, cohesion and communication, starting from the Leadership Team through the managers, supervisors and employees. Including fostering and promoting more leadership. Many people shared that the family-like atmosphere and friendships that exist in Corp A has not prevented and is not preventing the dysfunctional cultural dynamics mentioned in this document. In most cases it seems that people have just figured that best is to ‘enjoy the good without addressing the bad’.
10. There is insufficient focus on mentoring, coaching, and developing talent in Corp A, starting from the Leadership Team.
  1. Many managers, supervisors and Leadership Team members shared their frustration about not being able to lift their heads above water and attend to their leadership and managerial duties of mentoring, coaching, developing and providing feedback to their people. Almost all managers, supervisors and employees expressed their frustration about not receiving coaching, mentorship, guidance and developmental help from their superiors to do their jobs better, understand the bigger picture, and enhance their career. While many pointed to the overload of work as the main reason people also expressed doubts about the level of commitment, priority and skill their leaders and managers have, starting with the Leadership Team, in coaching and developing their subordinates. There were specific examples shared about leaders′ lack of attention, priority, patience and ability to mentor their people.
  2. Some stated that leaders, managers and supervisors could do a better job trusting their subordinates and delegating more responsibility to them. This would help alleviating the overload and provide an opportunity for people to step up and assume greater accountability.
  3. Some people also expressed their concern that with the current lack of talent development Corp A is not building its next generation of leaders that will create bigger breakdowns in the future.
  4. Several people mentioned that the performance management program is being adhered to because of HQ mandate to do so and the tie to compensation, however, there is no follow through and real commitment behind it.
  5. People also brought up the frustration around lack of enhancement and succession planning. While everyone seems to understand that in the environment of Corp A there are limited places to go many people seem to feel that Corp A can be more creative about how to boost developmental and enhancement opportunities for those who want to step up.
11. People are pleased about the Systems improvements and frustrated with the level of their utilization.
  1. Many people acknowledged the changes and improvement in systems over the past year. At the same time people shared frustrations about the fact that some groups still have to use two systems which makes their jobs much more difficult and labor intensive.
  2. People also expressed frustration about the lack of skill their organization has to take full advantage of the new platform, especially in terms of creating custom frames and reports that could make their jobs more effective. In some cases the knowledge of how to fully use the system lies in the hands of only one or two people which both limits the team′s ability to function, plus it puts the organization at risk if these people are not around or if they leave.
  3. There also seems to be some frustration within Corp A about the level of support and training IT is providing around the new system. In some cases people understand that IT lacks the resources to provide the help needed. However, in other cases it seems that people are frustrated with insufficient level of responsiveness, accommodation, partnership and service attitude.
12. While customer service is generally high there is a need and opportunity to step it up.
  1. We heard many great things about Corp A′s client and customer satisfaction, in both organizations, from people at all levels. At the same time several people raised concerns about the current level of service quality within Corp A. It seems that Corp A has prided itself for a long time on having excellent service quality as measured by its statistics and tracking systems. At the same time people stated that in reality the actual quality and standard of performance including response time, quality of conversation, and knowledge of, and compliance with procedures is not where it needs to be. In some cases it has been declining over time. Some explained the issues as resulting from the overload of work, the lack of staff, the lack of training and the inability of managers and supervisors to focus on quality. Others explained it as a bit of complacency on the part of management. Some stated that leaders and managers are often defensive when being criticized for declining performance; hence they haven′t dealt with it effectively. Everyone expressed a concern that Corp A does not slide back and lose the edge that turned things around three years ago.