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Freddy

The Scenario

Freddy is in his office unpacking boxes, putting pictures of his family on his desk, etc. He hears an e-mail ding into his Inbox on his desktop computer. The e-mail, marked urgent, is from Trish McDougall, Head of Technology and Operations North America. The other half-dozen members of the New York management team are copied on the e-mail as well. Trish is requesting a meeting to discuss the need for a new strategy.

Part of the senior management team assembles. In addition to Freddy and Trish, present is Vivian Ho, SVP IT, North America, to whom Freddy reports. Absent are Gil Stanton, VP Operations NA, and Patrick White, SVP Operations NA, all of whom report to Trish as well.

Here's how their conversation goes:

Questions We Asked

1. Have you ever argued for or against a diversification strategy? What position did you take? How was it received?

2. Have you ever been in a discussion where you felt your colleagues or bosses were adopting a short-term view to the potential disadvantage of the company? Did you say anything?

3. Have you ever had a different view than your immediate supervisor on an important topic? Did you make your opinion known? How was it received and what was the outcome?

Comments We Got

The user community provided numerous anecdotes describing sensitive situations they've encountered just like the one faced by Freddy – whether it was to argue for or against diversification, debate short-term wins versus long-term gain, or take on their boss when they thought he or she wasn't necessarily seeing things clearly. They reported extensively on the classic challenge that arises for many general managers stuck at the crossroads of authority. Often, the greatest requirement of a GM in this position is to be able to argue effectively, at the right times, for the right causes, in the right way.

Six overall themes emerged from the input we received. Here they are, including some of the representative comments made.

1. It's okay to argue for change. Change means innovation, and innovation means value.

‘You have to take a risk. Otherwise, sooner or later, you will be out of the competition.’

‘After the financial crisis, “long-term” suddenly became equal to a quarter. I spoke up.’

‘Short-term strategy is cost-saving, but this will not be sustainable in the long term. As a member of the supervisory board, I'm trying to help the managing director to shift her focus gradually.’

‘The phrase “The markets wants …” or “The market is expecting …” comes up often. But seriously – I think that the market is more concerned about a sound long-term business plan than some kind of EBITDA make-up.’

2. Articulate your position with data.

‘When arguing against diversification I relied on the lack of value in pursuing it – expected results from the new directions were smaller than in focusing existing resources on the current mission.’

‘My approach is to gather the facts on overall developments in the market, our share development over time versus competitors, present them in a format that will allow discussion, start the discussion and ask the team who is winning and why.’

‘If you're going to suggest going away from your current direction, you should bring insight, and a plan.’

‘Fact basis and risk analysis were the essence of making my opinion known.’

3. Build trust early and often, so that your opinions will matter.

‘I prefer to have one-to-one conversations to build my vision before positioning myself.’

‘I have learned to choose my battles and argue against decisions only when there is a “material harm” for the company. In those cases, I choose to influence the course of action behind the scenes, not in meetings, and try to form coalitions or find common ground with other members of the management team.’

‘In my experience, it is greatly appreciated when you speak up and give your opinion, but only when your relationship is developed in such a way that your supervisor trusts you.’

‘I will work hard to support my boss. This will ensure I gain trust and respect, at least for hard work and loyalty. It will also ensure that he understands I support him and it's not my intention to undermine him or his authority. Once I gain that trust, only then will I be more open with my opinions.’

4. Remove any personal agenda. Focus on value for the company.

‘I argued for a diversification strategy, and it was well received. Everyone agreed to move forward in a certain direction. Then the group divided themselves in reality. Some people spent their time slowing the process, while others strategically moved to ensure they would get what they believed they needed for their respective market or area of responsibility.’

‘The approach that I take always comes from customers' needs, as that is the driver for all businesses.’

‘Experts protect their own little corners.’

‘I find bringing the discussion back to customer and shareholder value works, as does linking in with the customer values.’

‘The internal personal decision that has to be made each time is: (i) take a stand and make a statement, (ii) I am keeping my mouth shut in order to survive and fight another day, or (iii) I don't care, as long as I get paid. The difference between the first two is often seniority and the number of people in the room.’

‘Being right, and getting the individual credit, is not what matters. Successfully expressing an alternative, sometimes in steps, and getting others to start seeing it and then being willing to discuss it is how you can best contribute. For that, it is important to keep yourself out of the centre of attention.’

5. Know that people are going to resist change.

‘Often I get a negative response, and frankly I think it is because senior officers are afraid of admitting a wrong strategy or fear the loss of prestige when leaving marketplaces where our competitors are well established and making profits.’

‘I approached my supervisor and discussed the need for our company to engage in a diversification strategy, adding to our value proposition of supply of equipment for the Oil & Gas operators and contractors the business line of services in the Upstream and Downstream sectors, to weather off the cyclicality of trading and position the company on the Opex Spending Stream of our clients. My proposal was supported and raised to our Board, who turned it down when the underlying investment requirements were presented to them. I took the decision to leave, as I believed that I could not continue serving the same original vision. My boss followed suit a year or so later. In 2001, I was called back to rejoin the same company and the new established Board gave me the go-ahead to launch the same strategy presented to their predecessors three years earlier. The toughest part from thereon was gaining the minds of the colleagues to help build up a whole new organization. My ex-boss rejoined us a year later and we formed a team with distinct responsibilities, his was keeping the Board in line with the plan, and mine was developing the business, running the new operations launched, and getting the organization in harmony.’

‘Even though the need for change may be there, it usually takes lots of meetings and conversations to open eyes, cross conservative mindsets, and achieve radical change. Keep explaining your idea. Keep your message alive. If it's worthwhile, eventually someone will pick it up and support you.’

‘Cutting off the weak branches is a tough thing to do.’

‘I am constantly amazed at the stranglehold that Wall Street and, many times, kids a couple of years out of school have on our ability to sacrifice short-term for long-term value growth.’

‘Reactions are almost always ‘I hear you but you don't understand the big picture’ or similar.’

6. Challenge in private, not publicly; don't undermine or ‘take on’ your boss; understand that even if you present your position well, it still may be rejected.

‘On topics where you know that a challenge to the decision is political suicide, and/or that the arguing against is a lost cause anyhow, then my argumentation might not be as firm.’

‘Any discussion and/or challenging of an opinion will have to happen behind closed doors. When the doors open again, then it's “United we stand”.’

‘I did everything I could, including putting together a detailed report, inviting other people from other departments or external advisors, and using upper management influence. It sometimes worked, sometimes not.’

‘Even when the decision is against your opinion, executive orders sometimes have to be taken.’

‘We almost always find a mutual compromise. But when we don't, we follow his opinion.’

‘There were two separate instances in which I tried to shift management views and was overruled. In the first, the potential consequences were not financial, so I let it go and accepted the team decision, then kept my mouth shut when things turned out exactly as I had predicted. In the second instance, once management had made the decision, I called and e-mailed various higher levels of management to try to intercept the decision (without being disloyal), since the consequences were more serious. The decision was unfortunately maintained and a massive cluster-f@&k ensued. (Un)fortunately there was no witch hunt to find those responsible. It's important to pick your battles, play by the rules and not hold a grudge when things go wrong.’

‘It is okay to voice your opinion in one-to-one discussions. To take the dialogue in a meeting with a bigger audience has seldom turned out successful.’

Our Thoughts