Monet
Build a team that is able to meet new challenges.
“Why do some companies exhibit continuous growth and others do not survive?” asks Judy Harrison Bode. “The difference, I believe, is that the organization that recognizes that success is only the beginning is the organization that will thrive. As a leader you must build a team that is prepared and able to meet the new challenges that come with success.
“It is your responsibility as a leader to choose the right people. Mold them into an effective unit and sufficiently train them to use their individual strengths in the service of the team, and they can adapt to the environment—success will follow success.
“The foundation of a superior organization is a shared vision and a shared commitment. In each of my organizational incarnations, my first task was to make certain that everyone knew our goals and participated in formulating the path we would take to reach them.
“Each team member knew his or her part in the organization and how that function meshed with every other function. They committed themselves and their staffs to the success of the enterprise as a whole, knowing that if one element failed, the entire effort would fail.
“Communication mechanisms were put into place to effectively air and resolve organizational conflicts.
“Key to success was the organization’s ability to recognize and believe that continuous growth required change. Sustaining growth requires an organization with the capacity and willingness to identify and react to a dynamic environment.
“Charles Darwin wrote more than a century ago that survival depends not on size or strength, but on the ability to adapt. It is a principal, not only of biology, but also of commerce, that any organism that fails to respond to a changing landscape is doomed to extinction.
“The organization’s ability to respond in a unified manner to a dynamic environment has determined the level of achievement that the company has attained.
“I am credited with revitalizing and growing two dominant accessory businesses, The Monet Group and Liz Claiborne Handbags. Both companies were the market leader in their respective industries, costume jewelry and handbags. Both companies had lost their luster and were experiencing rapid decline of sales and profits.
“The reason for their decline was that neither company could change to react to a dynamic market. Consumer preferences were changing, the customer was commanding increased control over the channel, company operations were inefficient, new manufacturing competencies had to be developed, priorities needed to shift. Speed to market, maintenance of quality, and the importance of new product introductions were critical elements of success.
“It was easier to ignore the results rather than fix the core business. Management could continue to claim that they were the market leader and blame others for the weakening of the company. The goals and business priorities were not clear to the organization. Organizational conflicts prevailed.
“Functional areas put out fires, but there was no unified company effort. There was a lack of acknowledgement that past success was only a beginning, and that the company must adapt to the changing market for continued growth.
“Being new, I explained my situation to the team. I needed their help to understand key issues, business drivers, and the organization. I conveyed my first thoughts: that the team was responsible for our company’s success, and the company is a great one, but performance in recent years has not been acceptable. Going forward, we would build on past success, make all changes necessary to maximize value, and always act with a sense of urgency.
“Before we took any significant actions, my first task was to quickly gain a shared vision and a shared commitment. The management group undertaking a fact-based business assessment of the company and market accomplished this.
“Were we functionally excellent? How did we measure against key performance indicators? What were appropriate matrices to measure our success against? Were we communicating effectively with our customers? Were our selling strategies achieving our goals and our customers’ needs?
“The answers came back from the group. Our customers believed that we were too large to ignore, our allowance contributions artificially supported our funding, but our lack of innovation did not warrant continued investment. We learned that we must innovate to deliver value to the consumer and customer leadership faster than our competitors.
“The next step was to ensure that the team was comprised of the right players. Being the right player meant that you were technically competent and had the ability to work across all functional lines. Initial success reinforced to the team members that commitment to the company winning over their own functional interests paid off.
“Once we had the right players, governed the company objectively, and based our decisions on facts and customer/consumer demand, we began to see results. Cost of goods dropped; sales and margins increased.
“Our customers, and the retailers, invested in the business based on our innovation and leadership. We regained and increased our ‘share of wallet.’
“A Forbes reporter wrote: ‘Strolling through the Monet showroom recently, this reporter could see the results. Trifari has regained its youthful, trendy look. Marvella’s once cheap-looking faux pearls have new sophistication. Capitalizing on nostalgia, Monet has reintroduced a line of lovely jewelry, using its original 1940s designs.’
“A bigger compliment came from a past president of Monet who said, ‘This product was what I was trying to achieve but could never get design, sales, and manufacturing to work together on.’
“In ten months, the company became profitable once more. Customer sales increased by 12 percent, despite a declining marketplace.
“The same performance happened at Liz Claiborne. Within two years, sales increased by 42 percent, pretax earnings by 116 percent.
“Lessons learned? Success is only the beginning. A team must be prepared and able to meet new challenges. It was once said about Monet, ‘Harrison has cut a diamond from the rough, but she can’t admire it for too long. Costume jewelry is an unforgiving business. And while a diamond does not shatter, a glass one will.’
“A former colleague defined an effective leader as someone who organized people and resources to achieve a goal. A good leader can communicate in writing and verbally. He or she can gain commitment and make a believer out of you. Delegate, but know when to stop. A leader is self-confident and cares about the development of people.”
“I believe that these traits define a leader. Each individual must assess their own strengths and honestly recognize their shortcomings. The key is to understand the characteristics of good business leadership, be honest about your needs, and take action.”