"Surviving and Thriving Through Huge Growth" addresses how support organizations can maximize business growth, while containing and managing Operational Expenses and Headcount.

1. Surviving Huge Growth …
… by Driving Huge Change
The art & science of revolution!
Rusty Walther
Senior Vice President
Global Support

2. A quote for all seasons …
“Most of our obstacles would
melt away if, instead of cowering
before them, we should make up
our minds to walk boldly
through them.”
Orison Marden (1850-1924)
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3. A quote for all seasons … and reasons
“Most of our obstacles would “Success is a lousy teacher. It
melt away if, instead of cowering seduces smart people into
before them, we should make up thinking they can’t lose.”
our minds to walk boldly
through them.”
Orison Marden (1850-1924) Bill Gates (1955 - ?)
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4. Agenda
– Is it “D-Day” … or “Mon-day”
– Building a battle plan
– Communication
– Knowing your enemy
– Understanding the terrain
– Waging the war
– Declaring victory
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5. Case Study #1: Network Appliance GSC
Global Support Centers
– 400+ employees – 50,000 cases per month
Existing “Follow-The-Sun” model
– Four “cookie-cutter” support centers rolling cases
every 6 hours
– Hierarchical support model … a technical “cast” system
“BIG BANG”
Loyal customers – Miserable support experiences
– Complex cases … long average case age
– Kill & Ignore Loop
– Inadequate escalation management
Decision to change
– Consolidate into a 24x7 Flagship Center in RTP North Carolina
• All English support and all global Escalation support
• “Regionalize” within that consolidated model
• Embedded escalation support into multi-level “clusters”
– Consolidate all CSR operations (non-technical) to Bangalore, India
– Transition EMEA and APac sites to Level 1 Local Language only
– Shut down Sunnyvale CA Support Center (largest)
Execution Timeframe: 2 Fiscal Quarters!
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6. Case Study #2: Americas TPM
Partner-based On-Site Response
– 12,500 RMA’s per month – 40% with “human” dispatch
Existing Model
– Seven different TPM’s all regionally controlled
– Very poor training – virtually no follow-up “BIG BANG”
– Linear price model – skyrocketing costs
Miserable support experiences
– Poorly trained people …
– Working on mission-critical systems …
– In a world where costs were huge and controls were non-existant
Decision to change
– Consolidate into a single TPM
– Redesign the training and certification model
– Change the very nature of how and when we deploy TPM’s
– Move to a “Level of Effort” vs. “Insurance” pricing model
– RFP, Select, and Execute
Execution Timeframe: 2 Fiscal Quarters!
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7. Factors that drive big change
– “Nature abhors a vacuum.” Author Unknown
– Merger or acquisition activity
– Timing of a significant business event
– New hire license … like a “Hall Pass” for change
– Sizing … growth or reduction
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8. Assessing your Change Acceptance Index
Do I have a significant window of opportunity?
Is my management team strong and resilient?
Is my boss well-respected in the company?
Do I have intelligent HR and Finance support?
Does the larger company feel the need for change?
Does my team have “big change experience”?
Will the financials support either padding or variance?
Are there any dissenters with heavy “clout”?
Do historical metrics indicate the need for change?
Can I clearly articulate what “success” looks like?
0-20: Stay at Home 21-35: Think Hard 35-50: Go For It
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9. Understanding where you are …
… will drive your project decisions
Phase 1 – Construction
– Philosophy: Whatever it takes to move product
– Focus: Building and defining a capability
– Programs: Remedial Maintenance
– Service Margins: Negative
Phase 2 – Execution
– Philosophy: Manage and scale for volume
– Focus: Flawless execution
– Programs: Premium Support
– Service Margins: Positive
Phase 3 – Differentiation
– Philosophy: Service that drives product sales
– Focus: Professional Services
– Programs: PS / Consulting / NIS
– Service Margins: Maintenance = Very Positive
PS / Consulting / NIS = Break Even
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10. First things first
Visualize the end state… then sell it
– The journey will never happen if you can’t sell the destination
– Speak with precision and certainty (even if you’re terrified)
– Get 360o excitement around your project
Lobby for the resources to do the job
– Money, People, Assistance
– Don’t start the journey without gas in the tank
Choose your friends wisely … show them the LOVE
– CFO, CIO, HR-VP, Controller, Facilities, etc.
– Make them feel like invested partners
Identify your enemies early
– Human and non-human
Communicate a well-managed, phased plan
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11. The importance of “Phased Planning”
Phase 1: Capability Sets expectations
Phase 2: Coverage Indicates linear reasoning
Phase 3: Leverage Avoids public specificity
Phase 1: Prepare RFP Calms jittery nerves
Phase 2: Select Vendor
Allows room for adjustment
Phase 3: Build the Plan
Phase 4: Execute Provides a communications framework
Q1: Build the plan
Q2: Kick-off execution
Q3: Move most resources
Q4: Assess and adjust
Q1: Hear the plan
Q2: See the activity
Q3: Feel the improvements here
Q4: Customers feel the positive change
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12. Communication is the key
Build your plan with sufficient detail to withstand scrutiny
Speak with authority …
show total confidence
Be prepared to address
Hyper-sensitive issues
– RIF’s
– Relocation
– Job reclassification
– Task adjustments
Create
a central information repository
Detailed milestone communications
Never sacrifice Honesty
on the alter of controversy avoidance
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13. Know (and address) your “real” enemies
Self-interest
Suspicion of deceit
Personal uncertainty
Feelings of powerlessness
Lack of information or timely updates
Failure to address “How does this impact me?”
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14. Study the terrain
Keep your own house in order
– Every manager knows “the script”
– Passive-aggressive behavior is dealt with
swiftly and severely
– Everyone plays their position
• Execution is every manager’s responsibility
• Communication is every “leader’s”
responsibility
• Exploit organizational “thought leaders”
– get them involved
Know your neighborhood
– Align with influential leaders – update them often
– Partner with HR and Finance – don’t fight them
Obsessively watch the horizon
– “Only a fool falls in love with his own strategy.”
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15. Winning is about “Execution”
You planned it… now do it
Credibility comes from hitting early milestones
– Celebrate incremental success (LOUDLY)
Do not allow “speed-bumps” to become “obstructions”
– NEVER let them see you panic
Minimize exceptions
– They’re contagious and spread like the Plague
– Build a management framework around exception-handling
Never miss a chance to tell your story
– The “Ego-Impaired” should get remedial training in self-promotion
– This is no time to be shy
Flawless execution on your 360o communications plan
– Constantly remind everyone “why”
– Don’t let them forget what success looks like
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16. Know when and how to celebrate
Define success metrics and manage to them
– It’s hard to declare victory if you don’t know where the finish line is
Publicize and enjoy hitting milestones
– Recognize individuals and teams for everything you can imagine –
this is no time to be cheap
Show your face … the airlines will love you for it
Avoid the “never-ending” project
– Declare victory when you’re done
– Celebrate BIG … make everyone feel special
Be ready with a new challenge,
theme, project, etc.
– Idle minds are the devil’s workshop
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17. 10 Most Common Mistakes
1. The amazing disappearing leader
2. Saying “I don’t know.” (Use the alternatives)
3. Allowing the view of success to fade to black
4. Failing to address objections from stakeholders
5. Mistaking consensus for unanimous consent
6. Too many exceptions or not planning for exceptions
7. Fear of making needed personnel changes
8. Under-communicating to a key constituent group
9. Allowing the objective to seem unattainable
10. Losing focus on the human element
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18. About that “Human Element”
The employee that can answer “Yes”
to these seven question …
… will stay with you through ANY change activities.
1. Do I understand the vision and future of my company and department?
2. Has my leader helped me connect my job to that vision?
3. Do I trust my leaders and believe they are competent?
4. Am I fairly compensated for the job that I do?
5. Am I publicly praised for individual and team accomplishments?
6. Do I receive regular performance coaching on development areas?
7. Does my leader know my career goals and is he/she helping me
achieve them?
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19. Be smart about “consulting” help
Task-oriented consulting ONLY
– Clearly define deliverables and pay ONLY on deliverables
– Construct a milestone-based timeline
• Tasks, resources, dependencies, costs
– Skip the “fuzzy analysis” projects
• There’s way too much data out there (for free)
Don’t embark on the “Guilt Trip”
– Pressure from friends of the past
Make sure it solves a “real” problem
Negotiate to succeed
– Cancellation clauses
– Back-load all the margin
– Check references - Review examples similar to your project
• If they can’t produce them …
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20. Just for fun … a lesson in “Partner-Speak”
“I’ve been watching your company “I saw this morning that you just
for quite some time.” closed a new round of funding.”
“Let’s explore a mutually beneficial “If I don’t close a contract soon,
business relationship.” it’s back to working the “Drive-
Thru”.”
“Your CEO suggested that I give “At least I hope he does when he
you a call to discuss our returns the VoiceMail I left him
services.” about 5 minutes ago.”
“Leveraging our services creates a “Can I have some of your money
new paradigm that scales well and … PLEASE ???”
produces great value-add.”
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21. Recovering from setbacks
– Doing so publicly makes you “human”
– “It’s not a problem if you can solve it with money.
It’s a budgeting exercise.”
Rusty Walther (1958 - ?)
Good
Pick any Two
Fast Cheap
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22. Case Study #1: Center Consolidation
Project completion in
April of 2006
– Finished ahead of schedule and well under budget
• Decision to “Expense” vs. “Restructure”
– 60% of the organization either
relocated or changed roles
– Highest attrition was Director-level (5)
• All of it was induced vs. voluntary
– Natural attrition below historical norms (sub-5%)
– Total of two (yes … 2) severance packages delivered
– All key performance metrics driven in a positive direction:
Customer Satisfaction Improved by 5%
Same-Day Resolution Improved by 140%
Speed of Answer Improved by 120%
Average Case Age Improved by 40%
Average Time to Resolve Improved by 60%
Average Cost Per Case Decreased from $275 to $120
New Case Volume Increased by 45%
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23. Case Study #2: TPM Consolidation
Project completion in
August of 2007
– Selected IBM Global Services
– Built a detailed plan
• Rewards for delivery – penalties for mistakes
– Finished ahead of schedule and well under budget
• Actually accelerated during execution
– 3-day hands-on class with mobile labs
– CD-based “visualization tool” with online updates
– Team-based management reviews
Cost of transition ROI pay-back in 1 quarter
Cost per dispatch Decreased by 60%
Mistake rate 5% of previous rate
Growth costs 20% of prior level
Annual cost savings ~ $8 Million US
Noise-level Drops to “Zero”
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24. Final words of advice
You can never plan too much
– “Every battle is won or lost before it is ever fought.” Tsun Tsu
You can never listen too much
– “When people talk, listen completely. Most people never
listen.” Ernest Hemmingway
You can never communicate too much
– “The problem with communication … is the illusion that it has been
accomplished.” George Bernard Shaw
In tough times … leaders must be larger than life
– “Time is neutral and does not change things. With courage and
initiative, leaders change things.” Jesse Jackson
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25. Questions …
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