The "reversal force" of leaders

Famous management guru Ram Charan has released his new book "Reversal Force" after his book "Execution Force" was popular in the world in 2003. Under the severe situation of the world financial tsunami, Provide a good recipe for the survival and growth of enterprises.

For the sustainable operation of an enterprise, the operator will inevitably face the challenges of prosperity and adversity, and adversity is the time to test an operator's "reversal power". In the end, what are the characteristics of "reversal force" that a leader of an enterprise should have? To sum up, there should be four points: the ability to calmly analyze and see through the future development trajectory; the courage to make decisive decisions at critical moments; the ability to motivate team morale and perseverance. Below I share my experience of two "reversal forces".

2003 was my second year working in mainland China. The company was in a booming opportunity, but two senior managers of the business group, which accounted for 60% of the company's revenue, suddenly resigned and took away some senior employees of the company. , the company's internal turmoil, performance is relatively affected. In this case, without any hesitation, I jumped down to lead the team personally, communicated with each team member personally, gained a deeper understanding of the organization, and at the same time moderated and set a vision for the organization, boosted organizational morale, and in three A successor was found within a month, and the performance quickly resumed growth.

The recession brought about by the economic crisis started in the fourth quarter of last year. Our company's performance fell by nearly 25%, and the industry laid off a lot of staff. We also immediately took measures to reduce costs by 10% to optimize the organization and improve operational efficiency. Moving from cold spots to hot spots, closer business management, no layoffs but a 10%-20% salary reduction for senior executives, innovative operating models, proactively providing better customer service, and enhancing the combat effectiveness of the entire organization. The adjustment has achieved initial results, and the company's performance finally returned to normal levels in April this year.

When adversity comes, leaders must deal with organizational adjustment issues with empathy. They must stand on the front line and lead employees to face difficulties together. Pessimism and negativity will only bring greater difficulties.

A leader with "reversal power" will mostly take the following specific actions when encountering difficulties.

Organizational change Organizational adjustment is the most common means for leaders to break through the predicament. He can wake up the sleepy organization immediately and dismiss the ineffective or underperforming supervisors, which will send a strong signal to the entire organization: only Performance can keep your job!

Organization can be difficult to perform when the company is doing well, because every position is busy with work and doesn't want to adjust the organization. Through organizational adjustment, raising the rank of departments related to customer service can also guide the organization to become a customer-oriented organization.

Financial change In times of adversity, corporate profits decline, cash is king, and keeping cash for winter is the financial policy of many multinational companies in this wave of global economic crisis. Inventory level control, accounts receivable control, tightening of customer credit conditions, control of fixed asset expenditures, and freezing of personnel employment are all measures to reduce financial risks, increase cash positions, and enable the company to cope with the economic downturn.

When the operation reform is sluggish, it is necessary to pay more attention to the company's operational efficiency, improve per capita productivity, eliminate unnecessary waste, cancel unnecessary business trips, and suspend some employee benefits.

Improve management intensity In times of adversity, enterprises should tighten the clockwork and strengthen management intensity, so that enterprises can move faster and more efficiently. In the past, a review meeting was held once a month, but now it has become a weekly meeting, or even turned into a morning meeting. The review is conducted once a day. This can indeed make the whole organization move and be on high alert, make employees feel a sense of crisis, and also help reform, because adaptability Otherwise, such fast-paced employees will be eliminated, and efficiency will naturally increase.

Focus on core business, abandon some non-core value business, narrow the scope of enterprise operation, and fully manage the core business, and eventually become a leader in this field.

There is no definition of the term "reversal force" in Wikipedia, but I believe that theory comes from practice. Here I try to define "reversal force", "reversal force": a person or a leader In the face of adversity, the person can see through the truth of the problem and the development of the general trend, and take decisive and courageous actions to reverse the form of the decline. In such an era of economic uncertainty, "Ability to Turning Around" is the fundamental difference between an average manager and a great leader.

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