Free The First 90 Days by Michael Watkins Page B

STARS situations, the eventual goal is the same: a successful and growing business. But each type of transition presents a distinct set of challenges. If you are succeeding the leader of a high-performing business, the challenge will be to take charge in your own way while preserving what is good about the organization. If you are in a start-up situation, such as getting a new product off the ground, you will be responsible for creating the organization. If you are in a realignment situation, you will have to build awareness of the need for change.
    Each situation also presents characteristic opportunities that you can leverage to build momentum. In a turnaround situation, everyone realizes that changes need to be made quickly. That group awareness can help you move forward.
    In realignment situations such as Claire Weeks’s, the organization is still likely to have strong people, products, and technologies. By finding these islands of excellence, you can marshal the building blocks to make needed changes.
    Although every situation is unique, each of the four types of transitions exhibits distinct challenges and opportunities, summarized in table 3-1 .

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    .
    Table 3-1: Challenges and Opportunities of Transition Types
    Transition Type
    Challenges
    Opportunities
    Start-up
    Building structures and
    You can do things
    systems from scratch
    right from the
    without a clear
    beginning.
    framework or
    boundaries.
    People are
    energized by the
    Welding together a
    possibilities.
    cohesive
    high-performing team.
    There is no
    preexisting rigidity in
    Making do with limited
    people’s thinking.
    resources.
    Turnaround
    Reenergizing
    Everyone recognizes
    demoralized
    that change is
    employees and other
    necessary.
    stakeholders.
    Affected
    Handling time pressure
    constituencies (such
    and having a quick and
    as suppliers who
    decisive impact.
    want the company to
    stay in business)
    Going deep enough
    may offer significant
    with painful cuts and
    external support.
    difficult personnel
    choices.
    A little success goes
    a long way.
    Realignment
    Dealing with deeply
    The organization has
    ingrained cultural
    significant pockets of
    norms that no longer
    strength.
    contribute to high
    performance.
    People want to
    continue to see
    Convincing employees
    themselves as
    that change is
    successful.
    necessary.
    Restructuring the top
    team and refocusing
    the organization.
    Sustaining success
    Playing good defense
    A strong team may
    by avoiding decisions
    already be in place.
    that cause problems.
    People are
    Living in the shadow of
    motivated to
    a revered leader and
    succeed.
    dealing with the team
    he or she created.
    Foundations for
    continued success
    Finding ways to take
    (such as the product
    the business to the next
    pipeline) may be in
    level.
    place.

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    Transforming Organizational Psychology
    People’s attitudes and emotions vary in predictable ways depending on which of the STARS situations they are experiencing. Participants in a start-up are likely to be more excited and hopeful than members of a troubled group facing failure. But at the same time, employees of a start-up are typically much less focused on key issues than those in a turnaround, simply because the vision, strategy, structures, and systems that channel organizational energy are not yet in place. Participants in a turnaround often know what the problems are, but not what to do about them.
    Success at transitioning therefore depends, in part, on your ability to transform the prevailing organizational psychology in predictable ways. In start-ups, the prevailing mood is often one of excited confusion, and your job is to