Identifying Challenges and Opportunities

In all four of the ST _A RS situations, the eventual goal is the same: a successful and growing business. But each type of transition presents a distinct set of challenges. If you are succeeding the leader of a high-performing business, the challenge will be to take charge in your own way while preserving what is good about the organization. If you are in a start-up situation, such as getting a new product off the ground, you will be responsible for creating the organization. If you are in a realignment situation, you will have to build awareness of the need for change.

Each situation also presents characteristic opportunities that you can leverage to build momentum. In a turnaround situation, everyone realizes that changes need to be made quickly. That group awareness can help you move forward. In realignment situations such as Claire Weeks s, the organization is still likely to have strong people, products, and technologies. By finding these islands of excellence, you can marshal the building blocks to make needed changes.

Although every situation is unique, each of the four types of transitions exhibits distinct challenges and opportunities, summarized in table 3-1.

Table 3-1: Challenges and Opportunities of Transition Types

Transition Type	Challenges	Opportunities
Start-up	Building structures and systems from scratch without a clear framework or boundaries. Welding together a cohesive high-performing team. Making do with limited resources.	You can do things right from the beginning. People are energized by the possibilities. There is no preexisting rigidity in people s thinking.
Turnaround	Reenergizing demoralized employees and other stakeholders. Handling time pressure and having a quick and decisive impact. Going deep enough with painful cuts and difficult personnel choices.	Everyone recognizes that change is necessary. Affected constituencies (such as suppliers who want the company to stay in business) may offer significant external support. A little success goes a long way.
Realignment	Dealing with deeply ingrained cultural norms that no longer contribute to high performance. Convincing employees that change is necessary. Restructuring the top team and refocusing the organization.	The organization has significant pockets of strength. People want to continue to see themselves as successful.
Sustaining success	Playing good defense by avoiding decisions that cause problems. Living in the shadow of a revered leader and dealing with the team he or she created. Finding ways to take the business to the next level.	A strong team may already be in place. People are motivated to succeed. Foundations for continued success (such as the product pipeline) may be in place.