I wrote this article for our Real Agility Newsletter, but I wanted to share it here too, just in case some of you don’t get it. I think this is important to share because it gets to some of the deep values of Agile and good teamwork.
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Our business has been through crisis before. In the second half of 2005, my own financial mis-management led to near-bankruptcy for the business and for myself personally. My dear long-suffering wife and business partner, Melanie, kept things under control as we recovered. In late 2009 the Great Recession hit us hard and we had to cut our staff back to just Paul and myself by laying off three talented friends and cutting work to a loyal subcontractor. That was incredibly painful for everyone involved. A similar crisis occurred again in late 2011, although it wasn’t as severe. In September last year, our projections were showing a looming crisis… but we narrowly averted any layoffs when a smaller consulting deal closed and one person was let go for unrelated reasons. We still needed more work, and in late fall we were expecting to close three important deals.
In January we knew we were in trouble. Business was not booming. In fact, those three important deals had fallen through with nothing obvious on the horizon to replace them. Our office management was in a shambles with two recent changes in staff and very little continuity. Our accounts receivable had several items that were waaaay overdue. We were starting to dig deep into our operating credit with no obvious way to climb back out. The partners, Paul, Travis, Melanie and I started to talk about serious stuff: deep layoffs. We were worried we may even have to cut all the way back to just me doing work (mostly CSM classes) – a staff level we haven’t seen since 2007!
Two weeks ago, the four partners had an emergency weekend meeting after our early February attempts to build sufficient immediate cash flow failed. We consulted for over four hours around a single question: what should we do? Our projections were showing us running out of credit in just four weeks, our business development pipeline was almost empty and the few things in it were clearly long-shot deals, at least in the timeframe we needed. It seemed almost impossible to avoid deep layoffs. Our love for each other seemed almost irrelevant to the crisis, despite the depth of our feeling. The consultation was difficult and filled with despair.
My memory for exact words is poor. I remember concepts, relationships and feelings. During that weekend consultation, one thing really stood out: we started to talk about commitment. We talked about what it would mean to be committed to each other and to the business vision of transforming people, process and culture. Most powerfully, we talked about the commitment of our newest employee, Nima, who seemed determined to go to the ends of the earth, to the very last moment to help us all succeed. As we talked about commitment, we came to our most powerful decision: sink or swim, we are all in this together to the end.
After that critical point in our discussion, we set some goals, determined some important activities, and decided to go literally day-to-day in deciding if it was time to wrap up the business. And, strangely enough (I say ironically), we decided we needed to shorten our planning cycle from a month to two weeks, increase the discipline of our team’s interactions to bi-daily check-ins, create a detailed set of dynamic plans for the two weeks, and have a review meeting at the end of the two weeks. Sounds a bit like an Agile team, doesn’t it?
What happened? Well, we’re still around. We’ve closed enough business that our projections are now showing us staying in a steady state financially for the next three months. That’s a dramatic turnaround from just two weeks prior. We aren’t going to run out of credit. In fact, we now have enough prospects that we expect to be extremely busy in just a couple more weeks. Our end-of-cycle review, which happened on Friday, was still difficult. There is still great uncertainty about many things. But the one thing that is crystal clear, strong as steel, and deep as the deepest ocean is our commitment to each other to succeed together. We are a true team.
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If you have similar stories to tell, I would love to hear them!