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August/September
2004 |
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It's
not a Turnaround Plan Until Several Groups Say it is: How
to Communicate with Committees and Groups
| Miles
Stover, Turnaround Section Editor
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At some early point in any turnaround
effort there will be a need to sit down and “sell”
your ideas on how things will play out to either a bank group
or a committee or some other group and explain how they will be
involved. Too many times turnaround professionals “just
tell” the group or committee how things will be as opposed
to developing a strategy to get them to work with you. To optimize
your chances of selling them on your plan, it is necessary to
tailor and manage the initial group meeting.
When dealing with bank groups
you will probably deal mostly with the “lead agent,”
although on some occasions there is no “lead.” When
dealing with committees, there may be a committee chairman, but
not always. Focusing all of your attention on this one person,
if there is a lead person, is a mistake. There will be others
within the group or committee to help you get your plan approved.
Here are nine action items that
will score you points and, more importantly, may help you learn
quickly about who you will be working with in the days and months
to come. (The terms Committee, Group, Bank Group are used interchangeably
as the techniques apply to all types of groups.) One must remember
that in any successful turnaround effort it takes cooperation
from groups and or committees. The best of plans or strategies
are not achieved alone.
Information Gathering
- Find out who’s
who. No matter what anyone’s position is in
the hierarchy, they want you to recognize their individuality.
Before you face a committee, learn the names of each member
and the correct pronunciation. Question the member you’ve
had the most contact with to get the names of all other members.
Better yet, if the member’s respective organization
publishes a directory or other literature with names and/or
photos, get a copy and study it. As a last resort, you can
familiarize yourself with each member by exchanging business
cards with them and engaging each person in a brief conversation
before your presentation. Write down the names of each person
in the proper seating order for quick reference. Needless
to say it is always better to know who is in the group before
any meeting so you can have a discussion with other members
from your firm to learn about any relationships, personalities,
and/or histories with group members. You may get a clue as
to how to present choices to the group through knowledge gained
from an individual.
- Identify the Leader.
Committees may typically make decisions together, but they
often have an official or unofficial leader who influences
others’ actions and opinions. The decision leader establishes
the expectations and preferences of the committee –
win that person over, and you improve your chances of winning
over the rest. The most influential person in the group may
not have the highest rank, so observe committee members carefully
to find out who assumes the leadership role and how others
react to him or her.
- Determine the Pecking
Order. A definite order of influence exists within
a multi-member setting. The titles, seniority and personalities
of committee members give them varying degrees of influence
on the final decision. A senior executive who doesn’t
make his opinions known, for example, may have less impact
on the decision than a lower-level manager who argues persuasively
for or against your position. By knowing the backgrounds of
the group members and observing how they react with each other,
you should be able to tailor the direction of your presentation
and stress your points to the group.
- Identify Silent
Committee Members. Even if you don’t get to
present to everyone who has a say in the final decision, you
should still know the names of the “silent” committee
members. If they won’t join the rest of the group for
your presentation, make contact with them some other way:
send an interesting fax or letter summarizing the points that
will most effectively persuade the silent member to agree
with your position. These may or may not be the same points
you made in person to the other committee members during your
presentation.
Information Application
- Use first names.
When you aren’t sure how to address committee members,
listen for the way they address you and follow their lead.
Otherwise, call them by their first names to create an atmosphere
of familiarity; it may strengthen your position. Do whatever
you have to do to remember their names, as one’s name
is a word most people like to hear.
- Ask Members what
they expect from the Plan. Getting group members
to discuss their desired outcomes forces them to become involved
in your presentation and gives you a better idea of what direction
to take to achieve your goal.
As you listen to each member speak,
you should get a clearer picture of the hierarchy of influence.
By addressing and satisfying each member’s concerns,
you may win advocates for your position. This input is invaluable
and gets you a long ways towards getting the necessary number
of votes.
- Address the Expectations
of Dominant Members in the Hierarchy of Influence.
Earning the decision leader’s approval is the single
most important objective of your presentation. Know before
your presentation what this person’s objectives are,
and as you present, pay special attention to his or her comments
and questions. Be prepared to redirect your presentation to
erase doubts or fears the decision leader or dominant influence
hierarchy members may have about your plan. At the end of
the meeting, make a special point of speaking directly to
the decision leader, and seek that person’s assurance
that all issues critical to the decision have been addressed
to his or her satisfaction. Try to establish this person as
the focal point for future communication.
- Respond to Silent
Members. The committee members you don’t see
may have the most impact on the final decision. When these
silent members are senior management of the bank who sent
a “representative,” contacting them may weaken
your bond with the lower-level members of the group. As a
result, you must weigh the risk of losing 100% support of
your plan (due to your lack of contact with silent committee
members) against the risk of alienating the other visible
committee member. Strategically probe visible committee members
to disclose the existence of silent members.
- Follow-up. Successful
follow-up can, at the very least, reinforce a successful meeting
or presentation. These three post-meeting activities will
improve your odds on getting the results you want.
1.
Right after the meeting, perform a “diagnostic review.”
Write down key open issues driving closure and key points
of dialogue among committee members, particularly decision
makers and influential members.
2. Construct
a follow-up communication plan that includes promised
follow-up items, and reinforces points identified in your
diagnostic review.
3. Execute
your plan with emphasis on responsiveness (within 48 hours).
Use follow-up messages that make it easy for committee
members to become vested in your plan – for example,
play back their comments and fit them to your key messages.
Present an action plan outlining next steps, schedules
and expectations. This is your chance to have the last
say and control information.
The best presentations help
you connect with and make a positive impression on the people
who hear it. Instead of addressing the group as a collective body,
remember that each member is an individual with his or her own
feelings and thoughts about your plan. When you recognize and
make use of the differences among groups and committee members,
you will enjoy a higher success rate in selling your plan to them.
Many of the items addressed
here are points that seasoned turnaround professionals have utilized
to great success over the years. Many of the points described
might be new information to less experienced consultants. Most
of the points described here apply to initial meetings. Hopefully,
after one or more meetings the names and relationships are known
and that information has been used to your advantage.
Being prepared with a strategy
to learn about who is in your audience and who you will be dealing
with is vital to acceptance of your plan. Giving a presentation
should not just be an opportunity for you to say what you want
to say but is also an op port-unity to learn what others want.
Take advantage of the opportunity to gather information and then
apply the information learned. 
Mr. Stover has over two decades of successful experience
in the turnaround environment within a variety of industries and
in various capacities, holding several senior level positions at
companies that ranged from start-ups to Fortune 100 organizations.
He earned a BS in Accounting from the University of Southern California,
and a MBA in Management from Pepperdine University. He holds the
following credentials: Certified Turnaround Professional, Certified
Insolvency and Restructuring Advisor, Certified Fraud Examiner,
Certified Management Consultant, Certified Confidentiality Officer
and Certified Professional Consultant to Management. Mr. Stover
can be contacted at mstover@turnaround-inc.com or by phone at 253-857-6730.
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