Client: A new financial product (fund) being launched by a technology-based conglomerat
Client Type: Start Up
Executive Summary: The client's parent company had a history of launching successful science and technology-based businesses. However, the financial products division's product development group was floundering. Dysfunctional behavior was threatening the team's ability to perform. Richard Dana Associates identified the organizational, cultural, and leadership changes required to enable the team to meet product development expectations, resulting in a successful fund launch.
Clear to the Bottom Line: With a new, qualified leader in place and a functional, performance-driven team, the unique, market-leading fund continues to grow and attract new investors.
Services: Organizational and Personnel Assessment, Executive Coaching, Conflict Management, Strategic Planning, Organizational Consulting and Change Management
Assignment: This start-up financial products company was an emerging new business within a larger technology-based conglomerate. The parent company had a history of successfully launching new businesses by assembling teams of talented engineers, mathematicians and technologists. To date, the majority of teams had functioned well within a management structure which operated in a largely hands-off manner. The founder/CEO (a serial entrepreneur) and CFO had been able to "just bring bright, creative types together, give them room to work, and good things usually happened."
However, when Richard Dana Associates was retained, the financial products development group was in a crisis and was not functioning as a team in any observable way. The team faced widespread dissent, power-and-control issues, and serious communication deficits. The lack of formal project management threatened the project’s outcome. We were engaged to assess the situation and develop an action plan which would defuse the conflict and create "just in time" solutions.
Construct a Picture: To begin, strategic interviews were held with the CEO and all senior management officers. Concurrently, each team member was interviewed and a careful history was taken to understand all perspectives. Leadership, personality type, and conflict-management style inventories were also administered.
Convert to High Definition: It quickly became clear that the financial products development team had not gelled. Given the lack of hands-on leadership, individual team members had jockeyed for power-and-control. A rift between the mathematicians and engineers fueled the conflict. Morale was low during the long pre-fund-launch research phase. Non-disclosure agreements were tight to protect intellectual property; consequently team members had few outlets for their frustration. The corporate leadership group had not intervened in the face of rising conflict.
The business required a new organizational structure and a leadership model different from the parent company's customary hands-off model. The company’s prior successes and the management style of the executive leadership inclined the client to roll-out a limited solution targeted at "problem players." Instead, Richard Dana Associates recommended a solution that addressed the leadership vacuum while generating options to mediate conflicts and build a more positive culture for the business as it moved forward.
Execute the Action Plan: The CEO was given a critical choice: either bring in a new team leader with the requisite human relations skills and technical competencies or commit more personal time to the project. The CEO understood that the team needed personal attention from him to quell the destructive interactions. Given his reluctance to bring on an outside manager and expose the company's IP, the CEO decided to become more engaged with day-to- day operations. Working together we implemented the following changes:
- Transitioned one employee to a consultant role thereby reducing ongoing conflicts
- Designed a template and schedule for individual and small group meetings with the CEO
- Established a weekly full team meeting and expected all to attend, even if remotely
- Outlined strategic interventions implemented by Richard Dana Associates including:
- Building conflict resolution and communications skills and strategies
- Providing individual coaching at all levels within the organization
- Adding two new employees (research and data base specialists)
Results: Once the team situation was stabilized, the company hired a qualified project manager with proven product development background to free-up the CEO for other endeavors. Within eighteen months, the unique and market-leading product was launched. The fund continues to grow and attract new investors.
Next Steps: Richard Dana Associates continues to consult on a retained basis, working closely with the product development team and senior management. As the company grows, additional resources will be required and we will consult on managing growth. Richard Dana Associates remains involved with personnel decisions to keep the team functioning at a high level and provides coaching across the organization to maintain productivity and job satisfaction.