Ep. 108: Gary Piscatelli - Business Transformation for Today's Business Leaders

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Contact Gary Piscatelli: https://www.linkedin.com/in/gary-piscatelli-5a64766/

Hunter Douglas: https://www.hunterdouglas.com/

FULL EPISODE TRANSCRIPT
Adam: (00:00)
Welcome back to Count Me In IMA's podcast about all things affecting the accounting and finance world. I'm your host, Adam Larson, and this is episode 108 of our series. Today’s conversation features Gary Piscatelli, Senior Vice President and CFO of Hunter Douglas North America. Hunter Douglas is the worldwide leader in custom window treatments as well as a major manufacturer of architectural products. Gary joins us to talk about business transformation and what kind of leadership is necessary to successfully complete a business transformation. Now let's jump into the conversation.
Mitch: (00:44)
What does business transformation really mean for today's business leaders?
Gary: (00:49)
You know, it's an interesting one. You probably ask, you know, 10 people, you get 10 different answers, but for me, it's pretty simple. It's getting better at delivering on your strategic objectives, you know, or whatever they may be. You know, in some companies they're, you know, financially focused, it could be sales, it could be profit, it could be market share. It could be market position. It could be long term stability, customer acquisition, quality, product innovation, et cetera. Whatever those goals are, it's finding ways to accelerate, achieving those goals. It's as simple as that.
Mitch: (01:28)
That's a very clean cut definition and something much simpler than I've heard in the past, but definitely makes sense, and definitely the goal of a whole business transformation is improvement and acceleration. So, you know, when business leaders look to make these improvements and they hope to improve the organization, is there a type of culture that is really needed for a successful business transformation, and in that culture, in implementing this, are there certain challenges that a business leader needs to be aware of as they're going through the process?
Gary: (01:58)
Yeah. I mean, certainly some cultures are, you know, more conducive to accepting change than others, but you can't control the culture.. Certainly, you know, when you're starting to make a change and culture change takes a long, long time. So you have to really work within that culture, but there, there is something even more important than culture when it comes to change and that's leadership, and you know, without, you know, buy-in from leadership, even if it's just a CEO, but you need someone with decision-making authority, but then it, you know, has the ability to control that change to buy in, and if you don't have that, it doesn't really matter what culture you have. And, you know, I find leadership to be 100% accountable for results, including change. And it doesn't really matter what that culture is. You know, and there's some common things, to driving change, regardless of the culture. And the first thing is, Hey, no one wants to be changed. You know, if I asked you, you know, Hey Mitch, do you want me to change you? You know, you would say no, and you know, I would answer it the same way. So you have to go into it knowing that no one wants to be changed. Everyone thinks everyone else needs to change typically as well. So what you have to do is you have to find a way to talk to people at a level that they want to be talked to, and everyone would like their problem solved. Everyone wants their life to get better, right? So the first thing you have to identify is what are the things that are really wrong in an organization that you can get some alignment around. The people would generally agree that yeah, you know what, that's a problem. We need to make that better. You don't even have to have, have a solution. You just have to identify a problem, right, and try and get alignment that people would say, yeah, I want that to be changed at that point in time, everyone's probably pointing the finger at everyone else. I think it's someone else's fault. It doesn't matter. That's okay. Even first step is get recognition of a problem. The second thing is to try and get people to fundamentally it without pointing fingers too much as to what do we think the root cause of that problem is? Right? So we can actually start to develop solutions around, change around how we fix it. And the third piece is, you know, even if you get people to say, Hey, we have a problem and we have a problem. You know, we definitely want to get better at X, Y, and Z, and we even know how to do that. You know what I've found? And I was kinda shocked. you know, I think it was probably that my third big change, I had a room of people, all finance leaders, and I spent 20 minutes talking about what needed to be different. Everyone in the room nodded their head, complete alignment. So then I said, who's with me and no one was with me and I just didn't get it. I'm like, why, why won't these guys? Why don't these guys have just told me, they'll have a problem. They're all senior leaders in a company. You know, they they're responsible as far as I'm concerned for driving improvement, but they're not interested. And that's when I figured, well, gee, I've got to have in advance figured out what's in it for them. Right, So I've also had to figure out how can I talk to them so they're going to get on board. Right. And, you know, everyone is motivated by different things, right? Some people are motivated by money. You know, some people are motivated by job security. Some people are motivated, motivated by, you know, career progression. Right, so, and you can't just come up with one solution, right, because everyone's got different factors, they're going to drive their ability to get on board because change comes with risks and they're in risk and work. Right. You know, it's not easy to change, right. So people are like, why should I, you know, spend a lot of time working on this when I'm, I'm happy, you know, doing my job as it is today and getting paid as I am today and what's in it for me? So you really have to think through those things, at least with, you know, a handful of leaders so they understand, you know, why it's going to be good for them. At the same time, what you can do is, you know, outside of that change, you can start to change your incentive program because you know, pay does motivate people. So, you know, even ahead of that change, you may want to restructure whether it's short-term incentives, long-term incentives, even your annual review process. So that, to the extent people get on board, they're going to get rewarded and that's something I've, I've done in the last two places I've worked, you know, ahead of the change was to change the incentive program. So at least the compensation elements somewhat addressed, you know, getting on board and compensating people for delivering. And that's why I go back to transformation is about accelerating achievement of business results, right? So you should be doing it because it's going to make the company better. From there, there's more, you know, the other mistake people make is, you know, especially a lot of, a lot of financially driven changes there's associated cost reduction and people make too big a deal out of cost reduction, especially around people. And if you try and sell a change that says, Hey, it's going to result in 25 or 30% of the people losing their jobs, and you then want people to work really hard to make changes so that they won't have a job that's hard to do. So, you know, as I've kind of moved through changes in my career, especially the last one that I worked on at the company, right now, we didn't even address that beca...