The Situation

Our client was a $26 billion dollar utility whose stock had dropped from $30 to an all time low of $9.00 per share after a difficult merger. Middle managers and employees had left, and those remaining were not optimistic about the company’s prospects for recovery. The board and shareholders were not fully convinced that the newly formed Executive Team, led by an unproven CEO, would be able to turn the business around.

The Assignment

SD Murphy’s consultants started with the CEO and executive team and using the Accountability/Alignment process. They worked with over 100 of the company’s senior leaders to clarify their accountabilities, integrate their approaches to the post-merger strategy, and ensure alignment across the top levels of management.

The Process

SD Murphy used a collaborative approach, working at the Vice President, Director, and Manager levels. Internal facilitators were trained, and the Accountability/Alignment process was integrated with existing business processes such as strategy planning, goal setting, performance management, succession planning, and incentive compensation. This ensured the long-term viability of the Accountability/Alignment process within the company.

The Results

A 'cost of misalignment' dollar value was attached to each of the business issues resolved. Analysis showed that for every $1 the company invested in Accountability/Alignment, at least $3.35 was returned in bottom line benefit. In addition, the stock price had rebounded and stabilized above $18.50 per share, and Barron’s rated the Company's financial performance for that year at 21 out of 500 companies (Barrons, April 23, 2001).

At the conclusion of the project, the CEO publicly stated: “SD Murphy's Accountability/Alignment process has helped this organization pull together as one company and achieve a significant turnaround”. A senior vice president commented that, “Accountability/Alignment was one of the most useful things we did this year.”