Category Archives: Turnarounds
Is Your Business Stuck in Zombieland?
by Bob Vanourek “Insanity is doing the same thing over and over again and expecting different results.” Attributed to Albert Einstein U.S. government statistics tell us that about half of all new businesses will be gone within five years. Of course, some businesses become successful, often within a few years. These are the models all entrepreneurs hope to emulate. My guess is these stars are likely less than 10% of all new businesses. If I’m right in my conservative guess, about 40% of all new businesses may be stuck in what I’ll call “Zombieland.” Zombieland businesses are half alive and half dead. Their owners and managers often work crazy hours, sometimes milking their life savings and retirement accounts to keep them afloat, even re-mortgaging their homes and signing personal bank-loan …Continue Reading
Bending the Focus of a Company
Interview with Harvey Wagner Former CEO, Quovadx Leaders Speak Series Harvey A. Wagner was the turnaround CEO of Quovadx from 2004 through 2007. Quovadx was a $100 million, NASDAQ-traded software and services company with offices in the U.S. and Europe as well as some outsourced R&D in China. Customers were in the hospital and telecommunications markets as well as large financial institutions. The company was accused of accounting improprieties, went into a tailspin, and Wagner, ultimately, was asked by the board to turn it around. Quovadx merged with a subsidiary of Battery Ventures in 2007. Wagner is currently the managing principal of H.A. Wagner Group LLC, a strategic and business consulting firm. Previously, he served as a CFO or CEO of numerous firms, including Caregiver Services, Mirant Corporation, Optio Software, PaySys International, …Continue Reading
The Job of a Lifetime: Leading an Incredible Transformation
Interview with Nancy Tuor Former Group President CH2M Hill Leaders Speak Series CH2M HILL, founded in 1946, is a global provider of consulting, design, construction, and operations services for corporations and governments. Headquartered near Denver, the employee-owned company has revenue of over $6 billion and employs over 30,000 people worldwide. CH2M Hill manages large, complex projects around the world such as reconstruction efforts in the wake of Hurricane Katrina, relocation of American military bases in Korea, expansion of the Panama Canal, and projects for the London Olympics. In 2013, the firm was named by Fortune as one of the “100 Best Companies To Work For” for the sixth time and was named one of the “World’s Most Ethical Companies” by Ethisphere Institute for the fifth time. In 2005, leaders from CH2M Hill successfully closed the Rocky Flats …Continue Reading
Transforming a University
Interview with Dan Ritchie Former Chancellor, University of Denver Leaders Speak Series Dan Ritchie was the Chancellor of the University of Denver (known locally as DU) from 1989 through mid-2005, a particularly challenging time. Prior to that post, Ritchie was an executive at MCA-Universal and then CEO of Westinghouse Broadcasting before taking up ranching in Colorado. Ritchie is currently the Chairman and CEO of the Denver Center for the Performing Arts and Chairman Emeritus of DU. In the 1980s, DU was in crisis, borrowing money to make payroll with over $60 million in deferred maintenance on buildings. Ritchie enlisted cable television pioneer Bill Daniels, a leading proponent of values-based leadership, for financial support. Daniels donated $11 million as a challenge grant, asking the business school to incorporate business ethics into its core …Continue Reading
A Tireless Focus on Excellence
Interview with Steven Rothstein President, Perkins School for the Blind Leaders Speak Series Founded in 1829, Perkins School for the Blind operates in more than sixty countries with revenue of over $50 million. It offers free audio, Braille and large print books, and hundreds of newspapers by phone. The operations are complex, including a school, early intervention program, library, teacher training initiatives, publishing house, manufacturing division, technology division, and special services for the elderly. Marty Linsky, who teaches leadership at Harvard’s Kennedy School of Government, described Perkins and its President, Steven Rothstein, to us: “Rothstein took an organization that had barely left the 19th century and turned it into the signature organization in the world in services to the blind. He is in my managerial hall of fame. He has completely …Continue Reading
Turnaround Priority: Establishing Psychological Stability
For turnarounds to work, leaders must establish psychological stability in the organization. Too many turnaround leaders focus only on financial stability and neglect this critical element. In the turmoil of a turnaround, many people are demoralized, afraid, or angry. Some feel misled or on the verge of panic. Logo-inscribed ball caps stay in the closet. Some people bail quickly while others are out looking for new jobs. The turnaround leader must establish not only financial stability but also psychological stability. People need to be unfrozen, empowered to work on critical projects with confidence. At a successful turnaround Bob led, where the extreme negative cash flow flipped to healthy positive in a few years, he began to establish psychological stability through an all-day senior staff meeting early in the turnaround. Here …Continue Reading
A Vision of Great Leadership
Interview with Ursula Burns Chairman and CEO, Xerox Leaders Speak Series Ursula M. Burns is chairman and CEO of Xerox. With sales approaching $23 billion, Xerox (NYSE: XRX) is the world’s leading enterprise for business process and document management. Burns joined Xerox in 1980 as a mechanical engineering summer intern and then worked her way up to the top. Alongside then-CEO Anne Mulcahy, Burns worked to restructure Xerox through its turnaround. Burns became CEO in 2009. Today, she leads the 140,000 people of Xerox who serve clients in more than 160 countries. Burns is also a board director of the American Express Corporation and provides leadership counsel to the National Academy Foundation, MIT, and the U.S. Olympic Committee. In 2010, U.S. President Barack Obama appointed Burns vice chair of the President’s Export …Continue Reading
Interview with Daniel Wallach, Greensburg GreenTown
“Rebuilding Green after a Tornado” Interview with Daniel Wallach Executive Director, Greensburg GreenTown “Leaders Speak Series” A few years ago, a devastating tornado destroyed Greensburg, a small town in Kansas. Remarkably, the town bounced back and created a model for the world for building a “green community.” One national expert called it “the greenest city in America.” For our book, Triple Crown Leadership, we interviewed one of the leaders of the initiative, Daniel Wallach (founder and executive director of Greensburg GreenTown). Here are excerpts of that interview. What led you to your current work at Greensburg GreenTown? Daniel Wallach: A series of severe tornadoes hit this part of Kansas. Greensburg, which is 35 miles south of where I live, was destroyed. Over 90 percent of the town was wiped out, …Continue Reading
Interview with Dr. Andres Alonso
“Turning Around a School System” Interview with Dr. Andres Alonso CEO, Baltimore City Public Schools Leaders Speak Series We interviewed Dr. Andres Alonso, CEO of Baltimore City Public Schools, about his approach to leadership and the unique challenges of running a complex and large school system with multiple challenges and constituencies. During his tenure, Baltimore City students have reached their highest outcomes in state exams, across all categories of students, and City Schools posted its best-ever dropout and graduation rates. Previously, Dr. Alonso was Deputy Chancellor and Chief of Staff for Teaching and Learning at the New York City Department of Education. Before that, he taught emotionally disturbed special education adolescents and English language learners in Newark. Here are excerpts of our interview with Dr. Alonso. What was the context …Continue Reading
Interview with Dr. Dan Sweeney
“Breakdowns and Trans-Generational Culture” Interview with Dr. Dan Sweeney, Director, Institute for Enterprise Ethics, University of Denver Leaders Speak Series Why do so many organizations break down? In recent years, some major corporations have had breakdowns and made significant mis-steps (e.g., BP, Johnson & Johnson, and Toyota). We interviewed Dr. Dan Sweeney, Director of the Institute for Enterprise Ethics at the University of Denver, to get his insights into what happened. This is the first in a new series—the Leaders Speak Series—in which we interview leaders about pressing topics. BP made some bold pronouncements about sustainability and corporate responsibility but then ran into major problems with the infamous Gulf oil spill in 2010. What happened? Dr. Sweeney: There is often a wide divide between what is said in the …Continue Reading
