Be direct
D’Angelo had to cut the company’s operations and revenue by approximately 35 percent. It’s not an easy task, but it has to be done.
“In most turnarounds, there is a downsizing that does take place,” he says. “But without understanding what that downsizing is, you really have to talk to [employees] and let them understand the process.
“We had meetings all over the country and brought everybody together and said, ‘Look, this is the situation, and this is how we are going to address it. This is what a turnaround looks like, and these are the steps that we are going to go through as a company, and this is how we need you to support it, and these are some of the things that we’re going to be asking you to do.’”
Being direct with everyone and communicating the plan is the best way to handle cutbacks.
“Say it the right way, but don’t sugarcoat it,” he says. “We have a tendency to make things sound better or we have a tendency to think that we have to flower it up a little bit. Have more faith in people because they just want to know what the truth is. For the most part, when people understand what the challenge is, they will stand up and help you.”
Within a month, D’Angelo and his team were traveling to different locations and updating employees on the company’s status. He would bring some people from within the company so there were some familiar faces, and he would meet with groups of 50 to 75 employees.
“The biggest flaw in a lot of companies that go through turnarounds in the early stages is that they don’t deal with that stuff head on,” he says. “They continue to think it will get better. They don’t give answers. They continue to push it off week by week by week.
“What happens is you lose a lot of credibility. These things are tough conversations. You have the tough conversations … and then you turn around and you do exactly what you said you were going to do. People may not like it, but at least you start to build credibility and you start to get some movement and you start to get an understanding that whether they like it or not, you’re going to do what you tell them you’re going to do.”
Just like with employees, D’Angelo had to be upfront with customers, vendors and suppliers when communicating the message.
“You get them to buy in, because if you really get down to it and work through it with them, then normally vendors and suppliers are normally much better off working with a company that’s going through a turnaround than allowing that company to fail,” he says.
“As long as you can structure a program where you recognize their risk and their exposure, then you talk to them about how you need their support. But at the same time, you’re going to help them manage their risk. In most cases, it doesn’t happen overnight, but in most cases, they’ll stand by you and support you.”
Support like that is setting dck up for a better future. In December, dck acquired the last of Dick Corp. assets, signaling an end to the restructuring.
“The company is stabilized,” he says. “The company has a nice solid balance sheet. It has a lot of cash on its balance sheet and it’s poised for growth and we are looking at the right opportunities.”
D’Angelo and his team thought about keeping the Dick Corp. name, but because the name was tarnished in the marketplace, they decided to change it and start fresh. They chose all small letters for the new company name as a way to show a humble new beginning.
“For the people in the organization, dck represents their future,” he says. “To make the acquisition of the Dick assets the way we did and to close that chapter in their lives, it gets rid of any little bit of uncertainty that might have been left in their minds. It gives them something they can put their arms around and feel like they were part of because they were. Everybody in this company was part of making this turnaround work and making dck work.”
How to reach: dck worldwide LLC, (412) 384-1000 or www.dckww.com
