You Can Change Other People

CHAPTER 1WHY IT'S IMPORTANT TO CHANGE OTHER PEOPLE: BRIAN'S $170,000,000 TURNAROUND

When my client Brian Gaffney stepped into the role of CEO of Allianz Global Distributors, a financial services company with over $90 billion in assets, the company was losing $30 million a year. Not only was Allianz struggling, but the entire industry was in turmoil (many other asset management companies were closing their doors) and morale was low.

“My team is made up of incredibly talented people,” Brian told me a short while after assuming the role. “But most of them have issues that are getting in the way of their effectiveness. One is rubbing people the wrong way by clumsy communications. Another isn't being clear with direct reports and isn't managing people effectively. A third needs to be more proactive; he isn't having hard conversations that need to happen. A fourth is brilliant but sloppy, and several people are commenting on the risk to his credibility.”

So we went to work. And under Brian's leadership, a declining company made a complete turnaround. In the period that we worked together, he turned that $30 million loss into an annual profit of $140 million.

Here's what's really important about this story: Brian's turnaround at Allianz happened with the same leadership team that had been losing $30 million a year.

In other words, in a few short years, under Brian's leadership, the same people who were struggling with all those issues—the people who were leading the company to a damaging, ...