surviving huge growth by driving huge change

Surviving Huge Growth … … by Driving Huge Change

The art & science of revolution!

Rusty Walther Senior Vice President Global Support

A quote for all seasons …

“Most of our obstacles would melt away if, instead of cowering before them, we should make up our minds to walk boldly through them.”

Orison Marden (1850-1924)

A quote for all seasons …

“Most of our obstacles would melt away if, instead of cowering before them, we should make up our minds to walk boldly through them.”

Orison Marden (1850-1924)

“Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”

Bill Gates (1955 - ?)

and reasons

Agenda

– Building a battle plan– Communication– Knowing your enemy– Understanding the terrain– Waging the war– Declaring victory

– Is it “D-Day” … or “Mon-day”

Case Study #1: Network Appliance GSC

Global Support Centers – 400+ employees – 50,000 cases per month

“BIG BANG”

2 Fiscal Quarters!Execution Timeframe:

Existing “Follow-The-Sun” model– Four “cookie-cutter” support centers rolling cases

every 6 hours– Hierarchical support model … a technical “cast” system

Loyal customers – Miserable support experiences– Complex cases … long average case age– Kill & Ignore Loop– Inadequate escalation management

Decision to change– Consolidate into a 24x7 Flagship Center in RTP North Carolina

• All English support and all global Escalation support• “Regionalize” within that consolidated model• Embedded escalation support into multi-level “clusters”

– Consolidate all CSR operations (non-technical) to Bangalore, India– Transition EMEA and APac sites to Level 1 Local Language only– Shut down Sunnyvale CA Support Center (largest)

Case Study #2: Americas TPM

Partner-based On-Site Response – 12,500 RMA’s per month – 40% with “human” dispatch

“BIG BANG”

2 Fiscal Quarters!Execution Timeframe:

Existing Model– Seven different TPM’s all regionally controlled– Very poor training – virtually no follow-up– Linear price model – skyrocketing costs

Miserable support experiences– Poorly trained people …– Working on mission-critical systems …– In a world where costs were huge and controls were non-existant

Decision to change– Consolidate into a single TPM– Redesign the training and certification model– Change the very nature of how and when we deploy TPM’s– Move to a “Level of Effort” vs. “Insurance” pricing model– RFP, Select, and Execute

Factors that drive big change

– “Nature abhors a vacuum.” Author Unknown

– Merger or acquisition activity– Timing of a significant business event– New hire license … like a “Hall Pass” for change– Sizing … growth or reduction

Assessing your Change Acceptance Index

21-35: Think Hard 35-50: Go For It0-20: Stay at Home 35-50: Go For It0-20: Stay at Home

Is my management team strong and resilient?

Does my team have “big change experience”?Will the financials support either padding or variance?

Is my boss well-respected in the company?Do I have intelligent HR and Finance support?Does the larger company feel the need for change?

Are there any dissenters with heavy “clout”?Do historical metrics indicate the need for change?Can I clearly articulate what “success” looks like?

Do I have a significant window of opportunity?

Understanding where you are … … will drive your project decisions

Phase 1 – Construction– Philosophy: Whatever it takes to move product– Focus: Building and defining a capability– Programs: Remedial Maintenance– Service Margins: Negative

Phase 2 – Execution – Philosophy: Manage and scale for volume– Focus: Flawless execution – Programs: Premium Support– Service Margins: Positive

Phase 3 – Differentiation– Philosophy: Service that drives product sales– Focus: Professional Services– Programs: PS / Consulting / NIS– Service Margins: Maintenance = Very Positive

PS / Consulting / NIS = Break Even

First things first

Communicate a well-managed, phased plan

– The journey will never happen if you can’t sell the destination– Speak with precision and certainty (even if you’re terrified)– Get 360o excitement around your project

Visualize the end state… then sell it

Lobby for the resources to do the job– Money, People, Assistance– Don’t start the journey without gas in the tank

Choose your friends wisely … show them the LOVE– CFO, CIO, HR-VP, Controller, Facilities, etc.– Make them feel like invested partners

Identify your enemies early– Human and non-human

The importance of “Phased Planning”

Phase 1: CapabilityPhase 2: CoveragePhase 3: Leverage

Q1: Build the planQ2: Kick-off executionQ3: Move most resourcesQ4: Assess and adjust

Q1: Hear the planQ2: See the activityQ3: Feel the improvements hereQ4: Customers feel the positive change

Phase 1: Prepare RFPPhase 2: Select VendorPhase 3: Build the PlanPhase 4: Execute

Sets expectations

Indicates linear reasoning

Avoids public specificity

Calms jittery nerves

Allows room for adjustment

Provides a communications framework

Communication is the key

Speak with authority … show total confidence

Create a central information repository

Detailed milestone communications

Never sacrifice Honesty on the alter of controversy avoidance

Build your plan with sufficient detail to withstand scrutiny

Be prepared to address Hyper-sensitive issues

– RIF’s– Relocation– Job reclassification– Task adjustments

Know (and address) your “real” enemies

Suspicion of deceit

Personal uncertainty

Feelings of powerlessness

Lack of information or timely updates

Failure to address “How does this impact me?”

Self-interest

Keep your own house in order– Every manager knows “the script”– Passive-aggressive behavior is dealt with

swiftly and severely– Everyone plays their position

• Execution is every manager’s responsibility• Communication is every “leader’s”

responsibility• Exploit organizational “thought leaders”

– get them involved

Study the terrain

Know your neighborhood– Align with influential leaders – update them often– Partner with HR and Finance – don’t fight them

Obsessively watch the horizon– “Only a fool falls in love with his own strategy.”

Winning is about “Execution”

You planned it… now do it

Credibility comes from hitting early milestones– Celebrate incremental success (LOUDLY)

Do not allow “speed-bumps” to become “obstructions”– NEVER let them see you panic

Minimize exceptions– They’re contagious and spread like the Plague– Build a management framework around exception-handling

Never miss a chance to tell your story– The “Ego-Impaired” should get remedial training in self-promotion– This is no time to be shy

Flawless execution on your 360o communications plan– Constantly remind everyone “why”

– Don’t let them forget what success looks like

Know when and how to celebrate

Define success metrics and manage to them– It’s hard to declare victory if you don’t know where the finish line is

Publicize and enjoy hitting milestones– Recognize individuals and teams for everything you can imagine –

this is no time to be cheap

Show your face … the airlines will love you for it

Avoid the “never-ending” project– Declare victory when you’re done– Celebrate BIG … make everyone feel special

Be ready with a new challenge, theme, project, etc.

– Idle minds are the devil’s workshop

10 Most Common Mistakes

1. The amazing disappearing leader2. Saying “I don’t know.” (Use the alternatives)3. Allowing the view of success to fade to black4. Failing to address objections from stakeholders5. Mistaking consensus for unanimous consent6. Too many exceptions or not planning for exceptions7. Fear of making needed personnel changes8. Under-communicating to a key constituent group9. Allowing the objective to seem unattainable10. Losing focus on the human element

2. Has my leader helped me connect my job to that vision? 3. Do I trust my leaders and believe they are competent?4. Am I fairly compensated for the job that I do?5. Am I publicly praised for individual and team accomplishments?6. Do I receive regular performance coaching on development areas?7. Does my leader know my career goals and is he/she helping me

achieve them?

1. Do I understand the vision and future of my company and department?

About that “Human Element”

The employee that can answer “Yes” to these seven question …

… will stay with you through ANY change activities.

Be smart about “consulting” help

Don’t embark on the “Guilt Trip”– Pressure from friends of the past

Make sure it solves a “real” problem

Negotiate to succeed– Cancellation clauses– Back-load all the margin– Check references - Review examples similar to your project

• If they can’t produce them …

Task-oriented consulting ONLY– Clearly define deliverables and pay ONLY on deliverables– Construct a milestone-based timeline

• Tasks, resources, dependencies, costs– Skip the “fuzzy analysis” projects

• There’s way too much data out there (for free)

Just for fun … a lesson in “Partner-Speak”

“I saw this morning that you just closed a new round of funding.”

“If I don’t close a contract soon, it’s back to working the “Drive- Thru”.”

“At least I hope he does when he returns the VoiceMail I left him about 5 minutes ago.”

“Can I have some of your money … PLEASE ???”

“I’ve been watching your company for quite some time.”

“Let’s explore a mutually beneficial business relationship.”

“Your CEO suggested that I give you a call to discuss our services.”

“Leveraging our services creates a new paradigm that scales well and produces great value-add.”

Recovering from setbacks

– “It’s not a problem if you can solve it with money. It’s a budgeting exercise.”

Rusty Walther (1958 - ?)

– Doing so publicly makes you “human”

Good

Fast Cheap

Pick any Two

Case Study #1: Center Consolidation

Customer Satisfaction Improved by 5%Same-Day Resolution Improved by 140%Speed of Answer Improved by 120%Average Case Age Improved by 40%Average Time to Resolve Improved by 60%Average Cost Per Case Decreased from $275 to $120New Case Volume Increased by 45%

– Finished ahead of schedule and well under budget• Decision to “Expense” vs. “Restructure”

– 60% of the organization either relocated or changed roles

– Highest attrition was Director-level (5)• All of it was induced vs. voluntary

– Natural attrition below historical norms (sub-5%)– Total of two (yes … 2) severance packages delivered– All key performance metrics driven in a positive direction:

Project completion in April of 2006

Case Study #2: TPM Consolidation

Cost of transition ROI pay-back in 1 quarterCost per dispatch Decreased by 60%

Growth costs 20% of prior levelAnnual cost savings ~ $8 Million USNoise-level Drops to “Zero”

– Selected IBM Global Services– Built a detailed plan

• Rewards for delivery – penalties for mistakes– Finished ahead of schedule and well under budget

• Actually accelerated during execution– 3-day hands-on class with mobile labs– CD-based “visualization tool” with online updates– Team-based management reviews

Project completion in August of 2007

Mistake rate 5% of previous rate

Final words of advice

You can never listen too much– “When people talk, listen completely. Most people never

listen.” Ernest Hemmingway

You can never communicate too much– “The problem with communication … is the illusion that it has been

accomplished.” George Bernard Shaw

In tough times … leaders must be larger than life– “Time is neutral and does not change things. With courage and

initiative, leaders change things.” Jesse Jackson

– “Every battle is won or lost before it is ever fought.” Tsun Tsu

You can never plan too much

Questions …

surviving huge growth by driving huge change

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