Consulting Partnership Yields Owner’s Sabbatical, Leadership Renewal and Succession Readiness

Situation

A business that was stuck on a performance plateau for three straight years invited two outside resources — an executive coach and strategic planning consultant — to help spur growth. The owner, leadership team and consultants met to hammer out practical growth, succession and exit strategies.

Solution

The founder and president of a 16-year-old custom manufacturer was weary of leading daily operations. His managers felt boxed in by his energy and hands-on style. Performance coach Ed Penney of InsideOut led a “straight talk” discussion between the owner and managers. The surprising result was a new idea conceived by the president to expand leadership capacity, test succession readiness – and enable a short-term business sabbatical for the owner. Strategic planner Steve Coleman of Platinum Group collaborated with Ed and the president plus his management team to identify prerequisites for the sabbatical that include:

• Clear goals and desires of the owner
• Promotable managers with a risk-taking spirit
• Defined decision-making authority
• A safety net
• And a re-entry plan

The consulting partnership guided the president and his team as they outlined parallel plans for managers and the owner that were quickly validated by family, friends and customers. Six weeks later, the president’s sabbatical adventure of renewal, study, travel and creativity began. The managers had broader operating responsibilities, with Coleman’s on-site guidance and leadership as “safety net.”

Results

After four months, the president returned to a more focused role around new technology, new customers and new products. Managers have learned and demonstrated higher-level skills. Roles have been redefined for leadership in operating performance and revenue growth. The production superintendent will serve as process redesign expert and major account manager. A divisional sales manager has become the company sales and marketing manager. Record sales are booked for 2004 and early 2005. New employees are being hired to support this growth. The business is growing, and new products and markets are being pursued.