M2 Magazine July 2009< back
THE LIFE OF A BUSINESS DOCTOR
Sitting in the board-room with a strong cup of coffee at hand I carefully reviewed the large list of creditors and wondered what in the hell had I got myself into. The business had lost over $14 million on a $45 million turnover and what‟s more I was now responsible for over 2000 staff. Four rural towns and a number of businesses in central NSW Australia could be wiped out if the plant was forced to close down.
My concentration was suddenly broken by a loud explosion that shook the building. By the time I reached the loading bay, anxious faces were peering out of the windows from the administration and packaging areas. Not a soul could be seen from the inwards goods doorway with the exception of an angry grower standing resolute beside his truck with a shotgun in his hand. He greeted me with a hysterical volley of Italian words and wild arm gestures. Eventually, once the firearm was out of the picture I discovered that his fruit had been downgraded and he was not happy about it, to say the least. This was only one of a number of interesting incidents that I have had to deal with in my role as Business Doctor.
How did I get to be a Business Doctor? It was never by design. It began with my roles as a Leased Executive through a number of Management Consultants. My success at restoring sick businesses to full health and profitability soon established my reputation as one who gets positive results. In most cases the banks, shareholders and directors knew that these businesses were in trouble and virtually un-saveable. Over the years there have been only a few assignments where I have had no option but to advise the directors that in my opinion their businesses were beyond repair. The others have continued to operate successfully.
Over the years I have worked in a large variety of industries; including manufacturing, retail, the service industry, international trading, aviation, building and engineering. In all I have worked in over 40 different types, size and structure of enterprise from small, public and State Owned operating nationally and internationally. There is no doubt in my mind that my journey from engineering apprentice through to senior management and then onto owning my own businesses has had a beneficial impact on my success. My history of achievement across the wide range of fields that I have confirms my belief that there are fundamental elements required in successful business management no matter what the industry you are working. Too often I hear from employment consultants “The Directors want someone who has industry experience”. How naive that statement is.
How do I do it? “I‟m not a Management Consultant” I said to a client once. The difference being is that I take ownership of the problem and the company as would a CEO. I sit in the hot seat and develop the turnaround plan with senior management then work through it until the company is „well‟ again.
One of the key factors is to get all of your staff onboard. I don‟t walk in the front door but I slide in and get beside my people and assure them that I am here to save their jobs and their future. Many senior executives are too scared to accept the situation and to be open and honest with their staff. I never underestimate the employees. They know when things are not going well and they want to know the truth. I have always encouraged my staff to have an input into improving efficiencies at all levels as it develops an open door approach and quickly breaks down all of the barriers that seem to be so prevalent in today‟s working environment.
It can be more difficult to deal with the banks and creditors. It is imperative to quickly establish a relationship with them. Normally they just want to know the truth. I have found by offering a repayment plan to your creditors if their account is overdue immediately gives them confidence and it secures future supplies. If you are unable to pay your creditors the secret is not to ignore them. They also might be experiencing a tight liquidity situation. What destroys trust is no communication or telling porkies. Again being honest with the banks and creditors in almost all cases has paid off.
So what do I do? Every day would have its challenges and a typical morning would start off with my “Good-morning” to my staff as I walk around the plant or business. Grabbing a coffee I return to my office for an up date on our cash position, debtors, creditors and forward position. By 10.30am I would be speaking with the bank keeping them informed and onside. As a normal day continues I would be available to deal the numerous other issues that are always around the corner; maybe an irate grower with a shotgun trying to get my attention for example!
Working with people has its humorous side as well. I make it a rule to walk the factory, plant or office once during every shift even if the operation is a 24 hour one. On one such occasion I was interested to check out how fast the warehouse was being filled with the day‟s production of canned fruit, as I approached the rear of the building during my evening walk I heard some interesting groans emanating from the behind a stack of loaded pallets. You can imagine what I saw as I turned the corner. My production supervisor had a „human resources/relations‟ to sort out.
On another occasion I was left in a boardroom literally in the dark with an associate. We had just told the business owner that we had been appointed receivers for his company and asked if he would pass over all of the company‟s books to us. To say he was upset is an understatement. He immediately stood up, calling us an alphabet of profane names as he stormed out. Inconveniently he flicked off the light switch as he left and slammed the door behind him. We sat dumbfounded in complete darkness for a moment when my mobile phone rang and provided enough light for us to locate the light switch. We had a chuckle between us.
My job is a lot about using commonsense. Businesses need strong leadership and someone with great people skills and marketing ability. The last twenty eight years of my life have never been dull and I have met some interesting characters during this period. There were times when I wondered why I ever got into this stressful type of work? The answer must be that ultimately it is very satisfying. To see a business back on its feet and thriving knowing that you have been part of the turnaround, always gives me a buzz. The improved atmosphere within the businesses and the faces on the staff say it all.
Fred Stewart
www.bizzdoc.co.nz |
