Boosting the Morale of the Supporting Players

Inspire

“Every unit in the military has a role; none is unnecessary. Yet if left unattended, the soldiers on the front line tend to get all the glory,” says Damian McKinney. “Front-line soldiers cannot win alone. Victory requires the cooperation of everyone, from the transport units that secure ammunition to the kitchen staff who keep the soldiers fed. Raising the morale of those supporting players is the leader’s responsibility.”

The same is true in business. The spotlight tends to shine on flagship businesses or profit centers. A strong organization is one where the employees who support it behind the scenes have high morale.

 
Deep Dive

In the military, after completing basic training as enlisted soldiers, some are assigned to the infantry, while others are assigned to transport units or kitchen duty. If a soldier assigned to a transport unit lets his guard down, ammunition shortages may occur. If a truck driver falls asleep at the wheel, everyone may be left stranded in the desert. If those in charge of meals neglect hygiene, the entire unit may suffer food poisoning and become unable to fight. Victory or defeat is determined by whether each person performs their mission to the best of their ability.

During recruit training, instructors instill in soldiers the habit of staying focused at all times. A typical example is making them repeatedly disassemble and clean their rifles and then reassemble them in the shortest possible time. The aim is to establish a habit of never letting one’s guard down, even in tasks that are not directly related to combat. Many people have seen scenes in military movies where soldiers are made to polish their shoes or belt buckles until they shine. During surprise inspections, a soldier may be told,

“You didn’t polish your boots well enough. No leave for you!”

Such discipline is meant to instill the habit of paying attention to every detail for the success of the entire unit—even if they are later assigned to transport or kitchen duties.

As a side note, when you share a hotel room with former military personnel from McKinney Rogers, you quickly notice how well disciplined they are in their use of the bed and bathroom. It makes the stay very comfortable.

When I was working at Pfizer Japan, it was decided that the Schick razor brand, whose business unit I was heading, would be sold. At that time, a problem arose concerning Listerine mouthwash, which we were selling on behalf of another business unit as a supporting product. Although Listerine belonged to a different division, it shared the same sales channels as Schick, creating synergy because a single salesperson could sell both brands. However, Listerine’s sales were only about one-tenth of Schick’s.

For about two years, the situation remained uncertain.

“Schick will eventually be sold, but we don’t know what will happen to the employees afterward.”

“Listerine will not be sold, but we don’t know what will happen to its sales channels once Schick is gone.”

At first, the sales representatives who handled both Schick and Listerine began thinking like this:

“The company that acquires Schick will probably evaluate each of us based on our Schick sales performance. We can’t waste time selling Listerine, which is only one-tenth the size. Whether we keep our jobs or not will depend on Schick’s performance.”

As a result, they began to noticeably neglect Listerine sales.

Naturally, the Listerine marketing team began to complain.

“Since the decision to sell Schick was announced, the sales team has been neglecting Listerine, and my evaluation will suffer because of it.”

Because the role of the “supporting brand,” Listerine, was unclear, the sales and marketing teams began drifting apart.

I gathered my three direct reports—the head of sales, the head of Schick marketing, and the head of Listerine marketing—and shared everything I knew about the planned sale of the business.

“The companies considering acquiring the Schick business are very interested in the Japanese Schick operation, which generates more than half of the global profits.”

“There are two types of potential buyers. The first type already has strong sales channels in Japan. If such a company acquires Schick, they will likely dismiss Schick employees and simply add Schick’s sales to their existing sales force. The second type does not yet have a sales channel in Japan. If they acquire Schick, they will keep the Schick sales organization and have us sell products that have not yet been introduced to the Japanese market.”

The first type included companies such as Li**, P&*, and Uni****—well-known names in Japan. The second type included companies such as Ene******, Dur******, and Lqu****——companies most Japanese people were not familiar with.

“Our goal is to be acquired by the second type and protect our jobs. The acquiring company will benefit because they can increase sales in Japan without paying restructuring costs. Pfizer will benefit because the sale price will be higher. It will be a win-win-win.”

To be chosen by a company of the second type, I explained,

“We must establish the reputation that if you leave it to us, we can sell anything in the cosmetics and household goods channels.”

Then I declared,

“Although Listerine is the supporting business that will eventually be separated, we will deliver results with it with full commitment until that day comes.”

After hearing this explanation, my three direct reports agreed.

Once we had agreed on the strategy, we shared it with all employees.

Our simple objective was:

“Prove our value and protect our jobs.”

Our concrete plan was:

“Focus Schick on the high-price market and operate efficiently. Use the extra capacity we create to increase the market share of the supporting brand, Listerine.”

Once the objective and plan became clear, the Listerine marketing team regained its focus. The sales representatives also began actively selling Listerine again.

As the two-year deadline for the sale approached, we had opportunities to present to potential buyers of the Schick business. Each time, I made a point of saying,

“Well, our sales and marketing teams in Japan are very strong. Not only Schick, but even Listerine’s market share keeps rising.”

Of course, my aim was to make potential buyers think:

① “Our company already has a business base in Japan. If we buy Schick, we would have to lay off many capable employees. The restructuring costs would be huge, which means we cannot offer a high price. This acquisition may not make sense.”

② “Our company does not yet have a base in Japan. If we buy Schick and rely on this team for sales, we can expand our business. We want this deal.”

At first, the M&A advisors at a firm such as Morgan S******complained,

“Talking about Listerine has nothing to do with this deal.”

But when I said,

“If Schick sells for a higher price, your percentage fee goes up as well,”

they quickly understood.

Thanks to the employees’ persistence and the strong results we continued to produce, only companies of the second type remained as bidders. In the end, the business was sold to Energizer. Not a single company of the first type showed interest.

The employees working on the supporting brand, Listerine, gave their full effort, and each salesperson sold the supporting brand with full commitment. Through this, they experienced how their own actions could change their destiny.

At that time, I did not yet know about Mission Leadership®. Looking back now, however, we shared the Situation of the business sale, clarified the Aim of proving our sales capability, and agreed on a Plan in which neither the supporting employees nor the supporting brand would be neglected. As a result, not a single person was laid off. The Japanese Schick business, which had been one of Pfizer’s divisions, became an independent company—Schick Japan.

What pleased me most was that after selling Schick, Pfizer approached us and said:

“Listerine will remain a Pfizer brand, but Pfizer does not have the capability to sell Listerine the way your Schick team does. Please continue selling it under a contract even after the sale.”

With Energizer’s products added to Schick and Listerine, sales increased, and no one lost their job. Senior employees became executives of the new company. If the Listerine marketing and sales teams had lost motivation and cut corners, the Japanese Schick team might have been dismantled without recognition.

By sharing the goal as one team and refusing to neglect even the supporting brand, we were able to navigate the M&A successfully.