Challenge

The chairman of a publicly held professional services company blamed the president for its annual losses. However, the president knew that the chairman, as founder and previous president, had conducted an unfocused, ill-advised acquisition spree and created a company that had outgrown his management style.

Solution

The chairman was difficult to restrain and impossible to reason with. Finally, the president, management and investors implemented a hostile revolt and took over the company.

After the smoked cleared, the president was left as leader of a demoralized and uncertain firm. He knew he needed two styles; directive, to shed old acquisitions, determine the criteria for more compatible purchases and to drive overall performance; and participatory, to ensure communication, alignment and commitment to build the new, revitalized organization.

Result

He empowered an organizational reengineering team and initially helped them to set priorities and boundaries. He visited every location and talked with employees, explaining the vision, goals, expectations, customers, and markets. And engaged in substantive dialogue with them.

At the same time he exercised his directive style in locating a “white knight” to acquire the company and provide the financing essential for the its continued growth and success.