While tackling our sales challenges, we also needed to work on another hot fire: operations.
We had just acquired a competitor on the other side of the country. On paper, it was a strategic move—more engineering talent, expanded capacity, potential cost savings.
In reality, it was chaos.
The integration had been rushed. Both our operations and the acquired one had deep issues: missed deliveries, poor quality, bloated inventory, and inefficient production. Neither facility was the kind you wanted to walk a customer through. We were in danger of losing key accounts.
Facing the Operational Reality
Two things became clear:
- The acquisition wasn’t delivering value.
- Our core operation wasn’t much better off.
Our largest customers were frustrated. Our best program manager was threatening to leave under customer duress. And global customers kept reminding us we had no presence outside the U.S.
We had to move fast—and deliberately.
The Golden Rule in Tough Decisions
We made the hard call to close the newly acquired facility and consolidate operations. It was the right business move, but it impacted people. We chose to lead with respect.
We gave affected employees three months’ notice, treated them fairly, and asked for their help during the transition. Many stayed through the end, committed and professional. They were remarkable.
Meanwhile, I personally called our largest customer to end the daily status meetings that had become demeaning rituals. I admitted our challenges and promised transparency, but the punishment needed to stop. I promised our improvement. Our Golden Rule philosophy wasn’t just on paper—we lived it.
The Turnaround
We clarified expectations. We started continuous improvement teams and measured our progress. We streamlined inventory and production. We updated processes. Slowly, the noise quieted. Our best people stepped up. And new talent, drawn by our values, began to arrive.
But most importantly, we created alignment: between what we said we valued and how we acted.
Reflection Questions
- Where in your operations are you tolerating inefficiency or misalignment?
- Are your people empowered to improve the systems they work in?
- When faced with hard decisions, how do you apply your values—not just your strategy?
Next up: how we turned these hard-won insights into a strategy that could scale.