Change Management

The Challenge of Management – “KUIL” 

Knowledge: Diagnose the real problems by assembling a reliable and complete fact base

  • Utilize Internal and External Information Sources
Understanding: Evaluate the true and complete situation

  • Internal and External Problems
  • Expectations of Various Constituencies
  • Profitability / Contribution by Segment
  • Competitive Environment
  • Management, Organization and Business Processes
  • Cash-flow and Financing Requirements
Insight: Assess the situation and establish a future course based upon this disciplined factual evaluation, with full consideration of:

  • Objectives
  • Risks and Opportunities 
  • Resource Requirements
  • Commitment and Authority

Develop and document a measurable plan of action

Leadership:  Execute the Plan

  • Communicate the “Vision”
  • Provide Support, Guidance and Encouragement
  • Measure Progress and Accomplishments
  • Flexibly Reassess Direction Along the Way

Management consists of a great deal more than “Leadership” – particularly in relationship to the elements of “change”. Even the best management teams can become so consumed by their established “vision” and “goals” that they lose sight of the changing landscape around them and can find themselves focusing on the wrong priorities.

Two of the key initial challenges in any troubled situation are identifying

  1. Whether problems being faced are the result of failures of execution or strategy, and
  2. Whether potential responsive actions can be internally controllable, or will need to rely substantially upon external drivers.

Responding effectively to financially distressed situations is all about reevaluating the landscape and planning and executing responsive changes. Those changes may need to be operational in nature, or they may need to be largely strategic. They may require doing things better? Or doing different things?

“Efficiency is doing things right; effectiveness is doing the right things.”

– Peter Drucker

Identifying the true source of business distress and a full range of responsive options is a challenge which is often best addressed with the aid of “Fresh Eyes”. While bookstores are full of tomes which discuss how to lead, the more important challenge to many distressed businesses is knowing when to change direction – and that often requires taking a calm step back to reevaluate the landscape.

Kestrel’s disciplined diagnosis process is designed to focus intensely upon evaluating and illuminating the issues of knowledge, understanding and insight which are prerequisites to effective planning and management of change.