Making your mark

Gordon Brown’s accession in June saw intense media attention around the importance of strong leadership, particularly in the critical first months in a new role. Writing exclusively for RLI, Mike Petty, Director in the Retail and Consumer practice at independent executive search firm, Warren Partners, talks to the Chief Executive of one of the UK’s best known retailers about getting it right during that crucial bedding-in period: the first 90 days
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 I n the opening line of his international bestseller, The First 90 Days: Critical Success Strategies for New Leaders at All Levels, Harvard Professor, Michael Watkins, warns new business heads that: “The President of the United States gets 100 days to prove himself; you get 90”.

Whether or not you believe that Gordon Brown proved his ability during his first 13 weeks at Number 10, much was certainly made of the differences between he and his predecessor, Tony Blair, and not all of it favourable.

Just a few months earlier, similar comparisons had been drawn between newly appointed Chief Executive of Matalan, Alistair McGeorge, and his forebear. The company had just been, very publicly, taken private, and all eyes were on the former CEO of Littlewoods, keen to see whether he would be the one to steer the under-performing retail giant back to its former glory.

McGeorge says: “Before starting at Matalan, I had read that the previous CEO would be a hard act for me to follow. But external pressures didn't concern me — after all, I wouldn't have taken the job if I didn't think it was a great opportunity.
“What I found when I arrived was a business in a predicted state of turmoil. Despite having had access to the management team in advance of taking up the position, I actually found the situation to be a lot worse than I had expected. Having said that, there was nothing that couldn't be fixed, which meant that there were also more opportunities available to us than I had been able to foresee.”

The previous CEO had announced his departure a year before leaving, which, inevitably, had left the leadership in a state of flux. Setting the right tone from the outset was of the utmost importance.

“I hate mediocrity so set about communicating the way I like to work and my expectations as soon as possible,” explains McGeorge. “There was a distinct lack of confidence throughout the organisation, and I knew that it was key to reduce costs and generate cashflow in order to create financial breathing space and allow us more time to move forward.
“Having built up a clear picture of the executive team's performance from advance meetings, I replaced a number of individuals on day one. With the necessary redundancy programme out of the way quickly, I then focused on building a strong team and reassuring the remaining workforce of their job security. It was important for the future of the business that they didn't spend the next few months looking over their shoulders.”

An undoubtedly unsettling experience for the remaining staff, McGeorge knew that, for them to buy in to what he was trying to achieve, he first had to reassure them that such sweeping changes would ultimately prove to be for their benefit, as well as that of the business.

He continues: “There was no performance management strategy in place, which had left the staff confused about what to aim for and with no real understanding of what was expected of them. It was key, therefore, to instil morale and to motivate each member of the team by setting both short and medium-term individual objectives.”

Aware of the need to avoid alienating his staff, McGeorge
also insisted on a forward-looking culture, introducing regular forums in which staff at all levels could air grievances and have their questions answered. “Everything is up for debate, but, from day one, I have refused to look back or talk about the past,” he explains. “What we do talk about when we come together is the future and how we are going to make the business successful.

For the full article please see the RLI January 08 issue