A Growing Company Charts - and Adjusts - Its Future

The Situation

Healthmedia, Inc. is a highly entrepreneurial technology and health management company that had safely survived the rocky years of start-up. The company's energetic CEO and his board felt that Healthmedia, Inc. was ready to move to the next growth phase. They had created a strategic plan, one that called for significant expansion over the next five years and required courting investment partners.

The Challenge

The CEO thought his team was ready for the challenge, but he needed to make sure. Before seeking the necessary venture capital funds, he wanted to know whether his company was ready: did he have the right team in place to implement the growth strategy? Would the current company culture support and accept growth and change? Would they pass the scrutiny of a venture capital fund review? The CEO had previously worked with The Oliver Group during the start up phase of the company to assist in building leaders and employees. He turned to The Oliver Group again as he sought to answer his questions.

The Process

Healthmedia, Inc. initiated the assessment and analysis of company leaders by using the Predictive Index and a 360° tool. These tools measured the leaders' natural styles, perceptions others have of them and how the leaders feel about their positions. Fits and gaps were determined, compared to the company growth strategies in order to create a viable development plan for the future.

However, the overall analysis of also revealed deeper problems within the company. The 360° particularly revealed large gaps between the thinking of employees and managers. Employees cited feelings of alienation, low morale, and a lack of communication, training and feedback. They felt that the managers were focused solely on the board and customers and not on them. Confronted with the analysis, the CEO realized that his employees would not support his current management team as they moved into the growth phase. He also had seen a slow down in sales and production and began to see a correlation between morale and performance. Clearly, major issues needed to be addressed internally before the growth plan could move forward.

The Change

The CEO used the analysis to launch immediate change. Some changes included:

The results have been extraordinary. The company now listens to its employees, and employees give back with renewed sense of loyalty and enthusiasm. Morale is up, sales are up, and the growth plan is back on track. Most importantly, the company has established a successful partnership with a venture capital firm, a relationship that provides Healthmedia, Inc. with necessary funding as well as invaluable advice from top business leaders.