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40 Percent Fewer People, Three Times the Output

Writer: Eric Herrenkohl
Eric Herrenkohl
5 days ago
5 min read

A VP-level executive I coached was told to cut costs by 40 percent. He did it. Headcount and operating expense both came down early in the year.


Over the next several months his team more than tripled the number of programs it implemented. Execution metrics held. In places they improved.


Most people hear numbers like that and go looking for the systems story. A new platform. A better process. Some automation.


What I watched instead was a change in how one executive used his own time.


He works at a healthcare-related technology and services company. Before we started he was already one of the strongest performers in the business. This was not a turnaround.


Where the extra capacity came from


Take 40 percent of the cost out of a team and output usually goes with it. The other common outcome is that the leader absorbs the gap himself and is finished inside a year.


Tripling the volume with quality intact takes something else. It takes a leader who stops being the person who solves things.


He had built his reputation on going deep on any problem in his area. That is why he was promoted. At VP level the same instinct turns him into the constraint. Every hard problem routes to one calendar. The organization then moves at the speed of one person.


What changed was ordinary and hard to do. He sets the objective now, names an owner and says what finished looks like. Then he holds people to it. Dashboards and operating metrics give him the visibility he used to get by involving himself.


All of the capacity came out of what he stopped doing.


The strengths that built the ceiling


Nothing holding him back was a weakness. Each one was a strength that had stopped scaling.

He was responsive, so he absorbed requests. Work arrived. He found a way to get it done instead of forcing a conversation about priorities.


His analytical range showed up in executive updates as more detail than the room needed. He was answering questions nobody had asked.


He led through knowing the work. The next level required him to lead people who knew more about the subject than he did.


Rank was the other one. Anyone with a more senior title got treated as effectively his manager, which made him slow to challenge a direction even when his own judgment said it was wrong.

I see this in most strong VPs. The behaviors that make an excellent director make a bottleneck at VP. Nobody says anything, because those behaviors are still producing results.


Saying yes is a resource decision


The most visible change was what he did with competing requests.


His default had been to take the work and figure out delivery later. We built him a sequence he could run in the moment:


·       Confirm the request

·       Restate what the organization has already committed to

·       Say what delivering this would take

·       Name what moves, slips or needs more resource

·       Ask the decision maker to confirm the priority


None of that is refusal. It does not require authority either. He was not telling senior people no. The resource decision went back to the person who owned it.


The whole thing costs him about two minutes before he agrees to anything.


The cost of rescuing work that is not yours


When another function was not delivering, his instinct was to step in and carry it.

That works once. The result arrives faster this week. Then the person who owned the work learns that somebody else will finish it.


So he got deliberate. Ownership gets named. Commitments and dates go in writing. Decision rights get agreed before the work starts. He follows up against what was agreed rather than what he assumed.


The hard part was watching something slip on somebody else’s plate. He left it there for them to fix. To an executive who takes responsibility seriously, that feels like negligence.

It is also the only way the layer underneath a strong leader grows up.


Leading the experts without becoming one


A complicated problem came up spanning operations, technology and data. It sat well outside his expertise.


He learned enough to see the major dependencies and ask questions that landed. What he never did was try to become the technical expert.


He worked it as a bridge instead. The specialists had the detail. The business had the consequence. He moved between them and kept naming who owned what. The conversation stayed on the outcome the company needed.


We spent a large part of the engagement here. For anyone promoted on technical mastery this is the hardest transition there is. The belief underneath it is that credibility comes from being the most knowledgeable person in the room. At the executive level it comes from framing the problem and holding the result.


How senior leaders started to hear him


His executive updates used to carry everything he knew. Now he opens with the business issue and what he recommends, then stops. The detail stays available for anyone who wants it.

Before a senior conversation he works out why the issue matters and what result his recommendation produces. Then he answers the question once.


He also started disagreeing. When he had a real case he made it plainly. Here is the request. Here is what we are already committed to. Here is what this would cost. Your call.

He expected that to cost him relationships with senior leaders. The opposite happened. They respected his judgment more.


One more thing was distorting his behavior. It was basic. He had been treating every member of the senior leadership team as though each of them had authority over him. A few conversations with his manager sorted out where the decision rights actually sat. His presence changed once he knew who he worked for.


The proof is what lands on his desk


Ask a leader whether he has changed and you will get an answer. What people hand him is better evidence.


By the end of our work together he had taken on ten bigger cross-functional projects. None of them had much to do with his original lane. He turned the company’s strategic priorities into an execution roadmap with named owners and tracked milestones. When the business looked at a major growth opportunity, he ran the readiness analysis. Somebody had to build a quality framework that could run through an AI-enabled review. That job went to him. So did the governance around the company’s AI deployment, down to use cases and data handling.


None of that work arrives clearly defined. None of it sits inside one function. It runs on influence rather than authority.


His team kept delivering more with less the whole time this was happening. He is now the prime candidate for the next job up.


Ready to find where your own leverage is stuck?


If you have a strong VP whose organization runs at the speed of their own calendar, adding headcount will not fix it.


One conversation is usually enough to tell whether the constraint is delegation, priorities, executive communication or decision rights. It will also tell you what moving it would take.



 
 
 

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