Why Transformational Leadership and Innovation are Key in Challenging Economic Times

Ms. Sheri Miksa was most recently CEO/President/Board Director of Robeks Juice Franchise Corporation and is known for building successful organizations based on transformational leadership and innovation.  Talking to RN Associates, Ms. Miksa shares some of her frameworks and guidelines for effectively leveraging this leadership style for business success.

RNA: Can you elaborate on what inspired you to pick this topic for our discussion?

SM:  In The Robot Syndrome, authored by my husband John Miksa, he pointed out that we are in the midst of “The Great Global Recession.” His book is an industry-agnostic treatise on the importance of adaptive (non-robotic) customer service, a topic I am passionate about as well.  It got me thinking about how leaders have to change and “style flex” during difficult times, to be effective.

These are unprecedented times, and working really hard at business as usual simply isn’t enough.  To be successful, leaders will need a “transformation and innovation” mindset to compete effectively and help their brands/companies remain viable. They will not only need to “have the wisdom to know what’s right” but also “the courage to do what’s right.”

RNA: As an Executive, you are well known for concept transformations and business turnarounds using innovation as an enabler. Can you share with us a few cues for a new leader to assess if they may be facing a transformation, a turnaround, or both?

SM:  I find it useful to create a framework for analysis.  Start with “THE BIG SIX.”  Ask yourself six key questions to clearly identify where you are starting from and how far it is you have to go:

1. Where is your business in its lifecycle? – start-up, growth, mature
2. What tools do you have in your toolbox? – your team, budget dollars, consultants
3. What is your target, or what does success look like? - breakeven, cash flow positive, consistent quarterly profitability, growth of x units or x %
4. How big is the gap from where you are to your target? – small, some work to do, massive  
5. What will it take to get there? – money, time, retraining, culture change, new positions or new people, new systems and processes, acquiring a business, selling a part of your business
6. How long do you have? – make your assessment then get aligned with your leadership (could be your Board of Directors).  In a public company, your world is measured in quarters and your clock may be different than one in a privately held company.  Be sure you identify “musts,” “shoulds,” and “coulds” and then have a laser focus on the “musts” (and later, some of the “shoulds”).

Sheri and her husband John

Ask and honestly answer all six of the above questions (including identifying the “worst case” on Q5 and Q6). When you add it all up, there are a number of possible outcomes:

• Just tweaking
• A transition from one leader to another
• A transformation (good concept/brand/product line but needs updating)
• Full-scale turnaround (financially challenged, company went far astray/lost its way, major competitive intrusion/market impact issues)

RNA:  So, what in your view are some guidelines a truly “innovative, transformational leader” should follow?

SM:  You have to be able to look at your business with “new eyes.”  As I like to say, “Take it out of the box, look at it from all sides, and vow to make some BOLD changes before you put it back into the box.”

Start by conducting a standard SWOT Analysis with your team, plus any other needed assessments.  Be sure you identify the “sacred cows.”  Then, draft two 90-day plans; one for yourself (and hold yourself to it) and one for the organization (be sure they hold themselves to it).  Concurrently, draft the new, revised strategic plan and set the direction; be sure you review it along the way with key stakeholders to build buy-in and ensure alignment. Communicate the plans broadly, then step back and let your team execute.

The key is to get to a “70%-80% solution” quickly and GO!  Don’t try to obtain perfect information. Especially in challenging economic times, time truly is money. 

Some additional guidelines:

• Always focus on the customer(s) in all that you do – both internal and external
• Go big or go home – be a calculated risk taker with a bias toward action – focus on the big ideas/initiatives and don’t get distracted
• Remember the “spinning plates” – you can’t change everything overnight – choose a place you can win, get it right, “keep the plate spinning,” then move on to the next opportunity by leveraging the first success and get that “plate spinning,” and so on
• Build your dream team quickly as you will need them
• Over-communicate - rally your troops early and often – tell people what they need to know and why it is important and let them ask questions – especially in a fast changing environment, both communication and results are key - tell people what you can, whenever you can
• Lead by example – you are the embodiment of the new transformation or turnaround culture – be visible – leverage best practices – praise champions/celebrate their ideas and have consequences for those not on board.  

RNA: As a firm that specializes in leadership talent, what is your advice for us on the human capital side?  How does this aspect get impacted while the organization is experiencing rapid change?

SM:  Your people are your greatest asset, especially during a transformation and/or turnaround.  Some basic principles for success:

• Reset the bar at a higher level early on – show people what success looks like and where the boundaries are – then hold them accountable.  I have used The Oz Principle, by Roger Connors (a program that aims at getting results through individual and organizational accountability).
• Make the tough people calls early - uncommitted people have a permeating negative effect on your organization.
• Trade up and hire the very best people.  Seek out leaders better than yourself – they will challenge your thinking.  Always be looking for your and your leaders’ replacements – think of human capital planning and succession planning as part of your annual strategic planning.

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Sheri Miksa has 25+ years of leadership/executive experience primarily in the foodservice/hospitality industries.  CEO/President/Board Director positions held by Ms. Miksa include Robeks Juice Franchise Corporation and Rubio’s Restaurants, Inc. (NASDAQ: RUBO).  Sheri has also held Operations Leadership positions for AFCE’s Seattle Coffee Co., LSG Sky Chefs, Taco Bell Corp., and ARCO.  Previously, she was in Marketing/Branding roles for Frito-Lay, General Foods, and Hotel Management Firm AIRCOA (Sceptre). Ms. Miksa has served on seven Boards of Directors.  Sheri Miksa earned her Bachelor of Arts degree in Psychology from the University of Alaska.  She later earned her MBA from the Stanford University Graduate School of Business. Click here to view detailed bio.

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