Most people know this quote from Pippi Longstocking; many entrepreneurs will recognize themselves in it as well. It shows strength and initiative, but there is also a downside.
In circumstances you haven't experienced before, external support may be more effective than trying to do it yourself, especially if the pressure is high. Regardless of whether it's about growth or just demand downturns, the next phase the business is entering, or a family business with 100 years of history facing major changes in market conditions.
Support
Recognizing the moment when the Pippi Longstocking adagium no longer works and support is necessary is perhaps the most difficult moment for responsible management. However, this applies not only to DGAs and executives, but also to supervisory directors and shareholders. The previous Brookz expert contribution of February 2022 featured the article "the company self-test" that can help answer the question of whether your company is in good shape or whether measures and support are needed.
In this article we look at a real-life example where, by leveraging the expertise of an (interim) executive, the necessary change was achieved.
New energy
Between the shareholder and managing director, trust had slowly but surely disappeared. However, it was clear to everyone that the company was on the eve of an important choice. However, the shareholder was not convinced by the direction taken by the managing director, which required very large investments.
Advisers' reports were there, but provided limited answers to shareholder questions and doubts. All in all, it didn't feel right. It was decided to temporarily add an additional board member to the team to jointly set the direction for the future, work out alternative strategies and test the proposed investment against the market, with long-term sustainable success as the goal.
The conclusion after a few months was that the investments would only produce the desired results if all went well, but that the risks were so great that they had to be described as irresponsible. Alternative strategies were worked out, in which future flexibility and the possibility of interim adjustments in the coming years proved to be important factors in regaining shareholder confidence.
The principles of the plan were jointly validated, including the risks, which also achieved shareholder buy-in. The quality, knowledge, experience and creativity within the organization were present in itself, but external support was necessary for implementation. After the decision was made, it turned out that not only could trust be restored, but also new energy had been tapped and the whole organization was ready to realize the transition.
Other perspective
Just a practical example from recent years. Whether it is an impasse, a new challenging situation or a difference of opinion about the necessary change, temporarily adding external management experience (from other sectors) can help overcome the challenge. Either through bringing new insights or approach, seniority, calmness or simply a different perspective.
In our experience, there is often too much hesitation and too late intervention, let alone asking for outside help. That's a shame, because very often a successful next big step is possible, and in many cases external knowledge and experience can help with that. The right temporary executive has just "made those meters" needed to make that happen.
