Thursday, December 8, 2011

HOW INTERIM MANAGEMENT IMITATES BASEBALL'S RELIEF PITCHER

Writing as an unrepentant baseball fan, I was watching that glorious Game 6 World series game and Tony LaRussa’s Merlin-like mastery of his relief pitchers’ for specific challenges in order to gain the pivotal win. As a reminder, LaRussa designed and used the entire bullpen with speed and aplomb to meet specific challenges, where the relief pitchers were used for particular needs (i.e. using a left hander to get a left handing hitter or bringing in a sinker ball pitcher to get a double play). It struck me that the relief pitcher was in effect a forerunner of the use of interim management. The use of the relief pitcher to the degree LaRussa did in a key situational role in this World Series has rarely been seen, but will be in the future. Thus we saw in baseball a major paradigm shift of game management strategy that will be adopted in order for the team to "seal the win", which is the objective in both baseball and business.

Business leadership has traditionally looked to interim management when faced with unexpected business situations, much like a baseball manager uses relief pitchers to deal with an immediate issue. The model for interim executive management is to fill short term vacancies, take on projects or mentor staff. This should now be looked at in a much broader and strategic way in that the interim managers can be used to aid the company in delivering situational skills and experience by upgrading the executive team on a short term basis without having a short term event trigger the hire of an interim executive. This role can be titled Executive Advisor and can be aligned where the work is focused.

To read the remainder of the article, click here.

Tuesday, November 22, 2011

ALL INTERIM MANAGEMENT MODELS AREN'T CREATED EQUAL

As someone who has lived interim management for the past eight years, it has been intriguing for me to see how other professional services or consulting firms have added “interim” as a service tab on their websites to capitalize on a growing worldwide trend. In reality, when you ask the question (and I have many times) you find out that the truth is they once offered it as a service but don’t really now, or it has become simply an extension of their executive search model. The executive registers with organization X, he/she is uploaded to its database and if an opportunity arises for which they could be a match, full or part-time, they might get an interview.

When I’m asked why some of the big multinational search firms who do interim can’t seem to make it work in Canada, or the US for that matter, to any great degree, my answer inevitably is “because they don’t offer   executives the opportunity to collaborate on integrated client based business solutions”.  We don’t view this as a trade secret, but rather extremely logical in its benefits for executives and clients alike.

To read the remainder of the article, click here.

Thursday, November 10, 2011

PERSPECTIVES ON SUCCESSION PLANNING

WITH THE FAMILY BUSINESS
Every family business comes to a point in its life when it becomes necessary for the current generation to find a successor due to age, health or other interests. It is a well known fact that passing the torch to the next generation in the family does not always lead to the most successful continuation of the business, especially with regards to the third and further generations. Usually, firstly, because the later generations have not invested their own blood, sweat and tears into creating and growing the business, and secondly, because each successive generation has grown up sheltered from the reality of the business and industry in general.

In witnessing successes with the third generation and beyond, it is often because the newer generation received an appropriate education and then worked in the real world for a few years before coming home to the family business. Another positive indicator is when the older generation agreed to a fixed period of mentoring before they would step down and lived up to the agreement. When these factors don’t happen it can lead to business disaster and personal tragedy.

To read the remainder of the article, click here.

Thursday, October 6, 2011

SASKATCHEWAN GETS THREE F'S

Article written for Osborne by Paul Martin of Martin Charlton Communications.

Even pessimists are finding it difficult to produce a Saskatchewan economic statistic that is negative. Investment is at record levels, the population is growing faster than the national average and consumers are showing no signs of flagging confidence.

For many years the Canadian province described as the easiest to draw but hardest to pronounce was  something of an economic laggard. Often characterized as the gap – that space between the Winnipeg and Calgary airports – the once sleepy province is now an economic dynamo.

The big drivers in the Saskatchewan economic story are to be found in the resource sector. First it was oil and gas powered by the dual engines of growing global demand driving prices higher and a faux pas in Alberta where tinkering with the royalty regime sent industry players scurrying for new plays. Saskatchewan’s Bakken project, located southeast of Regina, turned out to be the winning suitor for these new players.

Then came potash. An emerging middle class in China and India, a huge population base with rapidly rising disposable income levels, provided an additional catalyst. One of the first things the nouveau riche seeks is an enriched diet. Growing demand for protein prompted farmers globally to increase their output. Saskatchewan, of course, has plenty of farmers so this development lifted the agricultural sector. But farmers everywhere also wanted more fertilizer to feed the Pacific Rim’s new consumers and potash came into its own.

To read the remainder of the article, click here.

Monday, September 19, 2011

CASE STUDY: MANUFACTURING COMPANY

THE CLIENT
A Saskatchewan based animal feed component manufacturing company that produces Omega-3 rich feed supplements for all classes and species of livestock.

THE CHALLENGE
In an effort to bring a more integrated approach to the business and cohesion among all departments in the company, the internal finance role needed to be elevated from that of an accountant to a more senior position. In addition, there was a need to implement new tools that would help communicate key financial information in a more universal way which could be better utilized and understood by more people within the organization.

THE APPROACH
An Osborne Principal was engaged in the role of Mentor to transition the existing Junior Accountant into a Controller role. First, the Mentor reviewed what was required of a Controller and what it would take to get the accountant to step into the role. Then together they modified the financial reports to add more results-based information (such as a margin per product line) and to present the information in a more visual way (by adding graphs and charts) so they could be easily interpreted throughout the company. Lastly they reviewed all technical accounting aspects of the business and ensured the accounting treatments were understand in how they were made and why.

THE RESULT 
The improved communication and presentation of information resulted in a stronger reciprocal relationship between the Controller and the rest of the company. In addition to the Controller, everyone in the organization understood the process better, how the organization was doing financially, and what was required to improve. A more detailed documentation approach was implemented, which led to better risk mitigation and a better supported budgeting process. As well, the Controller became more assured and is now able to defend his decisions with confidence.
COMPETENCY: FINANCIAL MANAGEMENT INDUSTRY: MANUFACTURING osborneinterim.

Thursday, September 8, 2011

THE COURAGE TO GET IT RIGHT

I didn’t ask Shaw Communications Inc. CEO Brad Shaw who was a greater influence on his decision to pull the plug on Shaw’s wireless network, Kenny Rogers or Jim Collins, but I suspect that either through song or script, as he grew up in the family business, he respected subliminally the messages from them both.

Rogers, the 60’s and 70’s country icon singer, who crooned in his classic “The Gambler”, “you gotta know when to hold ‘em, know when to fold ‘em, know when to walk away, know when to run”, was talking about poker, but most would agree that today’s economic climate is about as high stakes a game as you’ll find.

Collins, in his 2001 best seller Good to Great, espoused that great companies follow the “hedgehog concept”. Namely, an understanding of (1) what they can be best at in the world, (2) what drives their economic engine, and (3) what they are deeply passionate about.

Not many CEO’s with just south of $200 million already invested would cancel a project that many critics called vital to the company’s growth. But in Collin’s speak, “facts are better than dreams” and the facts were that Shaw’s wireless business was a $1 billion build-out that didn’t align with its hedgehog concept and deliver shareholder value.

Weeks earlier, Leo Apotheker of Hewlett Packard had made a similar gutsy call on behalf of its shareholders; HP pulled the plug on its TouchPad tablet and announced its PC unit was for sale. Simply put, HP couldn’t be the best at tablets, and margins on personal computers were dragging not driving its economic engine.  Apotheker is also an enterprise, business solutions disciple and it is likely there that he felt HP had to focus.

History of course will be the ultimate judge of these tough minded decisions, but don’t let the size of these businesses mask the lesson to be learned, irrespective of whether you’re leading a public or private company or for that matter, a not-for-profit turning to social enterprise to survive.

As contract executives, transitioning in and out of a wide variety of organizations in need we sometimes see how dreams have blinded reality. Simple businesses have been made incredibly complex and leadership struggles with a singular focus on what they can win at, versus who they can be like. Stakeholders are not aligned (in fact oft ignored) and potential is not being fully realized. Every business must be ID’d in the following fashion, “What is it you do?”  “What is it you make money at?”  “What is it you can be the best at?”  Once the business is validated in this way, the disciplines, processes and people need to be in place for growth to be achieved and be sustainable.

And if the realization is that you’ve lost your way, cut your losses and get back to what you do best.


Mark Olson
Principal

Wednesday, August 10, 2011

CASE STUDY: CEVENA BIOPRODUCTS

THE CLIENT
Cevena Bioproducts Inc. (later Natraceutical Canada) was a spinoff biotech start-up company from the University of Alberta in Edmonton. The company manufactures supplements from grains that have shown in clinical studies to deliver multiple health benefits, including cholesterol and weight reduction.

THE CHALLENGE
Like many start-up operations, Cevena required assistance to commercialize the manufacturing process, reduce production costs and provide product consistency from a quality and quantity standpoint.

THE APPROACH
An Osborne Principal was hired as Interim Vice President of Engineering and Manufacturing with the mandate of defining the current production costs, to develop a plan to reduce those production costs at the current location or find an alternative location to do so, and to identify reasons why the bench scale process was not repeatable at a commercial scale.

THE RESULT
A multi-faceted plan was developed to reduce production costs. Subsequently, the company was purchased by a global enterprise (Natraceutical Group) that added additional capital, technical expertise and worldwide marketing support. The Osborne Principal was requested by Natraceutical to remain with the organization to assist with the ownership transition and implementation of the plan; the Principal also assumed the lead role for research and development at the time.

As a result, production costs were reduced by 70 percent to commercially viable levels by tripling plant capacity and converting to a commercially available raw material. Doing so also resulted in a reduction of raw material inventory by 90 percent. Lastly, the overall production process was vastly improved so that product quality was consistent and met quality requirements.

Thursday, July 28, 2011

FIRM'S EXECS ALWAYS READY TO HELP OUT

By: David Parker - The Calgary Herald

Back in January 2005 I reported that Trevor Axworthy had joined Mark Olson at the Osborne Group.

Axworthy is still a principal with the firm specializing in all facets of human resources, but it has been rebranded as Osborne Interim Management, its head office has been moved to Calgary and Olson is now the major shareholder, president and CEO of the firm.

Olson hails from Winnipeg, where he began his career in radio as an anchor and sports commentator relocating to Calgary to become vice-president of sales for Rawlco Radio, responsible for - at that time - 66 CFR and KISS-FM. But when the company sold its Calgary interests, Olson decided to remain here, joined Osborne Group and later became its managing principal.

In 2010, the Calgary office bought out the majority shareholder in Toronto and the company and its principals in other offices in Edmonton, Saskatoon, Toronto and Vancouver are now managed out of this city.

Osborne Interim Management provides high level executives to companies on a short-term basis when they are experiencing challenges during periods of transition, rapid growth or economic uncertainty.

To read the remainder of the article, click here.

Thursday, June 16, 2011

CASE STUDY: STRATHCONA HEALTH SOCIETY

THE CLIENT
Strathcona Heath Society (SHS) is a charitable non-profit society that operates Strathcona Community Dental Clinic. The clinic provides quality dental services to low income families. The clinic is focused on providing dental services to children in the inner city of Vancouver. Their first clinic has been in operation for over nine years, successfully serving and changing the lives of thousands of patients.

THE CHALLENGE
SHS is proposing to develop a second not-for-profit dental clinic in the Hastings and Nanaimo area of East Vancouver that will offer similar services targeting low income families, children and Aboriginal patients. In order to facilitate the development of this new facility, SHS required a compelling business plan to engage potential funders and other key stakeholders.


THE APPROACH
SHS engaged an Osborne Principal as the Project Leader to define the objectives, scope and deliverables for this key strategic project, working in collaboration with SHS’s Executive Director Stephen Learey. Additional associates formed the multi-disciplinary team required to develop the key project deliverables including a detailed financial and operational analysis of SHS’s business model. Project management best practices were leveraged to ensure that the project was delivered on schedule and on budget while minimizing risk to the client.

THE RESULT
The project was completed on budget, with all of the project’s deliverables, including a comprehensive business plan and a supporting PowerPoint presentation, approved by the client. SHS’s objective to open a new dental clinic in East Vancouver will positively impact a currently underserved community.

Monday, June 13, 2011

BUSINESS VALUATION & SELLING YOUR BUSINESS IN THE POST 2008 ECONOMY

When it comes to selling your business, the most important question one needs to ask is: How much is my business worth? The concept that a business is worth whatever someone is willing to pay for it is commonly held, but is also naïve.

There is no precise way to value a private business. The seller wants maximum return and the buyer wants to drive the price down to maximize the return on investment. There truly are many measurable ways to value certain parts of the business with items such as inventory, fixed assets (land, building, machinery/equipment, etc.) and reputation of the company. In most cases, it will come down to how keen the buyer is to acquire the business and how good the seller is in marketing the intangibles. The complexity of the process requires a holistic approach. Traditionally, banks have embraced the philosophy "that cash flow and client base have no value because the customer base can evaporate and they aren’t required to do business with you". However, businesses that are expanding with increasing revenues, cash flow and possess significant client lists are valuable to potential buyers and must be considered in the valuation.

To read the remainder of the article, click here.

Thursday, June 2, 2011

CAPITAL ACQUISITIONS - ANOTHER ROLE FOR INTERIM MANAGERS

Recent experience with a client has brought another area into focus where the role of the interim manager provides a good fit with the needs of small and medium-sized enterprises. As with my client, many business owners are looking at the need to replace, upgrade or add equipment in an effort to enhance labour productivity, control costs, improve quality or expand marketing opportunities. With the Canadian dollar providing a consistently strong exchange rate and interest rates remaining low, many businesses realize this is a good time to invest.

That being said, the decision to undertake new equipment investment is fraught with uncertainty. Is this the right machine? Will I get the results I’m looking for? Can I afford to do this? Can I afford not to do this? Is it a good time to take on more debt? Where’s the payoff? Laying out large capital expenditures for equipment purchases is often very uncomfortable for small and medium-sized businesses, many of which lack the required expertise and experience among their small management staffs to provide appropriate decision support in this situation. Nor is it a wise move for companies in this bracket to add to company overhead by recruiting and retaining a full-time executive to deal with these often widely separated, albeit crucial, investment decisions.

To read the remainder of the article, click here.

Friday, May 6, 2011

RECOGNITION, REWARDS AND RESULTS

Recently I was engaged in an online blog about employee reward schemes and my professional experiences. The originator of the inquiry was wondering how to compensate employees for their ideas and performance. The discussions were varied and the suggested approaches interesting. 

Always there is the argument of financial reward and if it is necessary beyond the non-monetary recognition programs. Some contributors were adamant that it should be considered part of doing a good job and no special consideration was warranted. Some felt that a TQM process or a Six Sigma approach was the Holy Grail and for them it may well be the case. They failed to mention that those programs can include recognition and reward components.    

To read the remainder of the article, click here.

Friday, March 18, 2011

THE HIDDEN POTENTIAL IN ANY ORGANIZATION

When an organization isn’t achieving its revenue potential, the worst case scenario may be that it is meeting its goals and is nicely profitable. That’s because much of the management team charged with growth is "comfortable". They are dealing with what they see and know and are more obsessed with validating their business/marketing plan than they are questioning its validity in today’s marketplace. If there is no challenge from ownership to improve, nothing will change.

To read the remainder of the article, click here.

Sunday, February 20, 2011

QUITTING RETIREMENT, AND GETTING BACK IN THE GAME

Interesting article written by Wallace Immen and published by the Globe and Mail on Friday February 18, 2011.

Ted Clarke was eager to live out his dream of retirement after more than 35 years in management roles. Since stepping down as president and chief executive officer of The Beer Store in Ontario a year ago, he and his wife have made extensive trips to England, the United States and the Caribbean. He has worked to perfect his golf game and get more competitive in his passions of running and squash. In November, represented Canada at the Invitational Masters Squash Tournament in Mexico, winning the bronze medal.

But as fun as freedom has been, the 58-year-old is finding that retirement isn’t all he thought it would be and he’s on the hunt for a part-time management or consultancy role. “I got a good severance and we have savings, so money wasn’t the issue. But I’ve realized I’ve got lots of energy left and I want to use it as constructively as possible,” he says.

To read the remainder of the article, click here.

Friday, February 4, 2011

OSBORNE GROUP-WESTERN REGION BECOMES OSBORNE INTERIM MANAGEMENT

We are excited to relaunch our organization under the banner of Osborne Interim Management. To help signify this new beginning we have a crisp new logo and a more contemporary and functioning web presence. Although we have a new name our service offering and quality of senior contract executives we bring to the market is unchanged.

This change is more significant than just a new brand identity; it’s also a refocusing of what we know and do best, and that’s interim management. North American companies are beginning to realize what a cost effective and efficient option an interim manager is compared to the expense and commitment involved with a full-time hire at the senior executive level. It allows organizations to better manage change in this era of economic uncertainty, whether the needs are in the areas of Executive Management, Operations, Human Resources, Finance or Sales and Marketing.

In addition, this change has allowed us to expand our service offerings geographically. Based in Calgary, Osborne Interim Management also represents Principals operating out of Vancouver, Edmonton, Saskatoon and Toronto; we will continue to focus on growth across Canada, and provide executives with diverse industry backgrounds.