00:00:00: [MUSIC]
00:00:04: Hello and welcome to the IAA Mobility Visionary Club here on LinkedIn Live,
00:00:09: the interactive format where we are connecting you with the mobility pioneers
00:00:13: who are shaping our future.
00:00:16: If you're joining us for the first time, a very warm welcome.
00:00:19: If you're an old hat, welcome to Episode 11.
00:00:22: Today, we are talking about the big C crisis and, more importantly,
00:00:28: surviving and thriving through a crisis with the help of resilient leadership.
00:00:33: Here to talk about this topic today, I am very pleased to welcome the owner and CEO
00:00:37: of Ready Group, Kristin Reitmeier.
00:00:40: Kristin, it's great to have you with us.
00:00:41: Thank you, Sarah.
00:00:42: Great to be here and tell my story.
00:00:45: Yeah, I can't wait to hear it.
00:00:47: So, everyone, just imagine breaking up tomorrow and learning that one of 10 companies
00:00:53: in your supply chain has collapsed.
00:00:56: That's not a scenario.
00:00:57: That's the reality we are facing in Germany right now.
00:01:01: 22,000 companies, gone.
00:01:04: More than 300,000 jobs at risk, and it isn't a German problem.
00:01:10: It's a warning sign for the entire global automotive industry.
00:01:15: While we race towards electric future and autonomous driving,
00:01:20: some of us are forgetting one thing.
00:01:23: Without resilience, without the ability to fail and recover fast,
00:01:28: we might not survive long enough to see that future.
00:01:32: I know this firsthand, believe me.
00:01:35: I took over Ready Group, a technical service provider,
00:01:38: in the automotive industry, with 400 employees in Germany
00:01:42: and more than 700 abroad, from my father-in-law in 2014.
00:01:48: We are specialized in containment activities, rework,
00:01:51: supply chain management, industrialization of new suppliers,
00:01:56: serving more than 1,200 clients around the world.
00:01:59: Like many, I had a simple vision.
00:02:02: Grow at any cost.
00:02:05: I am to double the company, and I needed it to be fast.
00:02:10: I wanted to shine.
00:02:13: Being a pure optimist, I ignored all the warning signs.
00:02:17: OEM project failed, cost pressure mounting,
00:02:22: new and higher IT security regulations we hadn't factored
00:02:26: into our business model.
00:02:28: And yes, we forgot a lot.
00:02:31: My numbers didn't lie, but I refused to believe them.
00:02:35: I thought, if I work harder, save more,
00:02:40: told myself I can turn this around.
00:02:44: Until one day, my former CFO, his name is Ralph,
00:02:49: sat me down and made it impossible to look away.
00:02:54: That night, I sat alone in our empty office building,
00:02:58: staring at the numbers, realizing this is over.
00:03:02: It felt like playing Monopoly.
00:03:05: You know that game where you don't have--
00:03:07: when you run out of money, you're out.
00:03:10: That's it.
00:03:11: My mind started spinning around.
00:03:14: Fears came up.
00:03:15: Many questions, concerns, worries about my family.
00:03:20: My employees, their families, said this cannot be the end.
00:03:25: And by the way, I never lost a Monopoly.
00:03:29: My poor young brother, he had to suffer,
00:03:32: but I said, hey, I will find a way out here.
00:03:35: And here's where the real story begins.
00:03:38: We had no money.
00:03:39: No banks would lend to us anymore.
00:03:43: And yet, we still had something very powerful--
00:03:47: a team, reputation, loyal customers, and the world to fight.
00:03:53: That's when we discovered something many German entrepreneurs
00:03:57: still don't know--
00:04:00: plan insolvency.
00:04:03: The German thing, a structured fast-track insolvency process
00:04:08: where you don't lose control about your own company.
00:04:12: We know it from the US.
00:04:13: They call it Chapter 11.
00:04:16: In China, they just pivot overnight.
00:04:18: But in Germany, failure was taboo.
00:04:23: Yeah, it doesn't exist until now, that moment.
00:04:29: This process, the whole plan insolvency,
00:04:33: allowed us to complete our entire restructuring
00:04:36: in just a bit over three months, because we
00:04:39: had a good and solid plan.
00:04:43: But it wasn't the legal process that saved us.
00:04:46: It was something more human.
00:04:49: I went personally to my employees and core customers,
00:04:53: face-to-face and online.
00:04:56: I told them the truth.
00:04:58: I explained where we stood and what our plan was.
00:05:03: And even when the salaries of my employees
00:05:05: were at risk, most of them still trusted me.
00:05:10: And when that money hit their accounts,
00:05:13: maybe a little too late, but right in time,
00:05:16: the trust became unbreakable.
00:05:19: Communication is the key.
00:05:24: Trust is the energy and the reliability
00:05:28: for all stakeholders.
00:05:31: We have to really understand this and take this into account.
00:05:35: So what saved us?
00:05:36: And what could save you if you are familiar with the situation?
00:05:39: Find yourself in there.
00:05:41: It's, first of all, radical transparency.
00:05:45: Hiding bad news doesn't protect you.
00:05:49: It destroys you.
00:05:51: Second, involve experts early.
00:05:55: You do not have to have all the answers,
00:05:58: but you must ask the right questions.
00:06:01: Ruin the trust of your people first.
00:06:05: Before customers, before the banks,
00:06:08: your employees decide if you survive.
00:06:13: And finally, your customers.
00:06:15: They will stand by you if you are honest, fast,
00:06:19: and keep delivering.
00:06:20: They don't want you to fail.
00:06:22: They want you to keep supplying.
00:06:25: The global automotive industry is facing its biggest
00:06:28: transformation in 100 years.
00:06:31: EVs, autonomous driving, AI, tariffs, it's all crazy.
00:06:39: Exciting.
00:06:40: But ask yourself this.
00:06:42: Are you building or are you working in a company that's
00:06:47: ready to survive the failure that will inevitably
00:06:51: come before their success?
00:06:55: Resilience isn't the buzzword.
00:06:58: It's a survival skill.
00:07:00: And it starts with leaders who dare to fail, learn fast,
00:07:06: and rise stronger.
00:07:07: On March 1, 2020, we officially completed our
00:07:12: planning events and have been restructured, saved.
00:07:18: Our success story could have started back then.
00:07:23: All was prepared.
00:07:24: We'll just try to remember only 17 days later, March 18,
00:07:32: Germany went into the first COVID lockdown.
00:07:36: That's the thing about crisis.
00:07:38: You don't get to choose when they happen.
00:07:40: But you always get to choose how to respond.
00:07:43: We survived that crisis too.
00:07:46: And today, my company is stronger than ever,
00:07:50: because we don't just manage crisis anymore.
00:07:54: We lead through them.
00:07:56: Thank you.
00:07:56: Kristin, thank you.
00:07:57: That was so moving in a way to hear someone speak about
00:08:01: such a personal experience with such a difficult topic
00:08:03: and to come out so resilient.
00:08:06: It's really inspiring.
00:08:07: I was struck listening to you and thinking about this industry
00:08:11: that you're working in.
00:08:12: It's complex.
00:08:13: It's fast moving.
00:08:14: You've led this team through a period of significant
00:08:17: transformation.
00:08:19: What shaped your mindset when you were navigating this
00:08:22: uncertainty?
00:08:23: You know, I talked about I was the optimistic guy.
00:08:28: Optimism is important.
00:08:31: But I also learned the hard way that realism is essential.
00:08:39: And my mind shifted.
00:08:43: When I realized ignoring the science of trouble
00:08:48: and the problems got bigger and bigger,
00:08:54: and probably all know that solve the problems once they arise.
00:09:01: And don't try to postpone and postpone.
00:09:04: They only get bigger and bigger.
00:09:07: And so this is what I really now have implemented in my mind.
00:09:12: Just face the things when they come up and solve them
00:09:17: before they get really in a shape.
00:09:19: Yeah.
00:09:19: Yeah, I was struck by you saying trust is the engine.
00:09:23: I think that's such a good line.
00:09:25: There's a lot of companies out there focusing on technologies.
00:09:27: But in times of crisis, it's really about the people.
00:09:31: I'm curious what you've learned about keeping teams aligned
00:09:35: and motivated under pressure, but also under straight up hardship.
00:09:41: As I said, for me and my team, it was really essential
00:09:45: how we communicated and that we treated the employees and everyone equal.
00:09:54: We have been really open in the communication.
00:09:58: And it was a tough way.
00:10:00: Telling them, maybe you probably don't get your salary by the end of the month.
00:10:04: It will take a couple of more days.
00:10:07: And you've seen their faces.
00:10:09: Oh, God, I have to pay my rent first of the month and I don't get my salary.
00:10:14: So we really took all their questions and their doubts really serious.
00:10:22: We tried to address it.
00:10:24: We tried to really show them the way out.
00:10:27: But we always have been honest to them because there are things you cannot change.
00:10:37: And don't try to hide it.
00:10:40: That was really that transparency and by that communication transparency,
00:10:45: we gained trust again.
00:10:47: Of course, we lost doing such a step.
00:10:52: And then, yeah, I think we rise stronger than before.
00:10:58: Because it's also when you manage a crisis together, it really sticks you together.
00:11:05: Yeah, yeah, it brings you together.
00:11:08: Crises can often be turning points.
00:11:10: They can be transformation points.
00:11:12: Can you share an experience where adversity perhaps unlocks some unexpected innovation
00:11:18: or maybe even growth?
00:11:20: If you look at the automotive industry and this, I think one thing you have to understand
00:11:25: that you cannot control everything, at least from my experience, I trust a lot and the people.
00:11:34: Especially if they are in different cultures, if they are in different areas, I decided
00:11:41: control is good, but trust is better.
00:11:46: Does it sometimes hurt?
00:11:47: Yes, it's not the best way always, but for me, I realized it's the best way to trust
00:11:55: on the local knowledge of the people, on the power of the teams in the different locations,
00:12:03: in decentralized organizations.
00:12:08: They know exactly how they will be successful.
00:12:15: Basically my goal is they don't need me.
00:12:18: They are closer to the customers, closer to the employees, they know what to do.
00:12:24: I feel myself being involved in everything, so it's not the micro management, it's really
00:12:31: supporting them, being more like a servant leader.
00:12:36: I'm there for them.
00:12:38: I was struck when we were talking just before the episode started, you said to me, "We don't
00:12:43: manufacture anything, we're in the people business."
00:12:46: But I'm curious, Kristin, how you see digital tools evolving your firm's service offerings
00:12:52: in the next, let's say, three to five years.
00:12:54: I'm thinking here about things like predictive quality analytics, AI, where is your head on
00:13:00: that?
00:13:01: I mentioned it, AI, everyone is talking about AI.
00:13:06: Probably there's no conference, no workshop where you don't have an AI part in it.
00:13:11: It's just like a big wave coming all over.
00:13:17: Yes, I think it is important, especially that you teach your organization not to be afraid
00:13:25: of it.
00:13:27: Be curious and don't think that AI is stealing your job.
00:13:33: Just try them to have fun with it, to experiment, but also to fail.
00:13:42: When I look at the whole industry, everyone is talking about AI, about the robotics of
00:13:48: the future, and we don't need people anymore.
00:13:52: I don't believe in that personally.
00:13:54: I always think we need people, but we can use AI, we can use robotics, we can use a
00:14:04: lot of machine learning to support us and to make the life for everyone easier.
00:14:11: I don't have the answer on all of that.
00:14:13: We are also in the middle of it.
00:14:16: We have our next workshop next week and the company.
00:14:20: It's all about practicing, we're just using it.
00:14:25: We see how does it feel, how does it work, and then at the end trying to find out what
00:14:31: fits to us.
00:14:33: I also learned and know that we are a small company.
00:14:38: We do not have to be market leaders or first movers.
00:14:43: We watch the different trends, we watch what the big companies do.
00:14:49: We can be second, but we have to be good.
00:14:52: We have to pick the right solutions for us.
00:14:54: I'm curious about when we think about services and people, how are you ensuring consistency
00:15:01: and best practice sharing across your teams when you're delivering services in multiple
00:15:05: client plans or countries?
00:15:07: You talked a little bit about trust and about hopefully they don't need you, but tell us
00:15:10: a little bit more about how you approach that topic, because I imagine it's quite complicated.
00:15:15: Yes, and I could have told you that we have the perfect system to make sure that everyone
00:15:23: is working the same way, the same process, the same system.
00:15:28: Reality is that's not the case.
00:15:33: Again here, I decided long time ago that I want to have a decentralized company.
00:15:39: A lot of many companies with under one roof.
00:15:42: Yes, we share the same culture and the same DNA, but we also have to understand that people
00:15:50: and companies in Southeast Asia and India, they have different circumstances, different
00:15:57: requirements, they have a different history than we in the industrialized countries here
00:16:04: or in the US.
00:16:06: We always have to keep that in mind that here in these countries, we have different focus
00:16:12: so yes, we try to make sure that we are on the same platform, that we support everyone
00:16:20: from the headquarter's perspective in terms of training, in terms of material and processes,
00:16:25: but we also know that we shouldn't be too strict.
00:16:30: Also let them do their own thing.
00:16:34: And at the end, the result and the happy customer and the returning customer is the best proof
00:16:41: for that.
00:16:42: It's not us having the best control mechanisms and pointing at them.
00:16:48: It's like, hey, make your own experience and if you grow by yourself in your country, that's
00:16:56: the best proof that you do right.
00:16:58: And of course, we support you and we should all understand that making mistakes is good,
00:17:05: but we shouldn't make the same mistakes again and again.
00:17:08: Let's make mistakes and we all know that the learning curve by making mistakes is the
00:17:15: steepest.
00:17:16: So we have to make mistakes in order to develop and learn.
00:17:20: What's been your most effective lever for scaling up capacity rapidly when a client
00:17:25: has an urgent containment or crisis situation?
00:17:30: As you said, we are a service provider.
00:17:31: So my main cost factor are the humans, my employees.
00:17:37: So I cannot afford to have always reserves on the bank and just send them in and have
00:17:46: them pre-trained.
00:17:47: This doesn't work anymore.
00:17:49: So we decided we go into partnerships, into corporations, for example with personal service
00:17:57: providers where we get trained and pre-selected people.
00:18:03: So we really work closely together with other service providers and we try to help them
00:18:13: understand our needs so they can serve us.
00:18:17: And by that, we hope that they understand our needs, we understand their needs and by
00:18:24: understanding the needs of each other, we can manage together and succeed together.
00:18:32: I mean, we also stick to them.
00:18:35: We don't use them as a cheap resource for recruiting, for example.
00:18:38: Say, "Hey, no, this is a partnership.
00:18:41: You have to make some money, but also we have to make some money.
00:18:44: So let's see where this goes."
00:18:46: And this is the same when I look at customers.
00:18:50: I tell my teams always, "Hey, we need these customers that understand our needs as well."
00:18:58: So let's try to learn from each other and see who has the heart or the soul at the right
00:19:04: place and who not.
00:19:06: So when we scale up, of course, we need a lot of external partners and corporations in
00:19:12: order to manage the volatility in the markets.
00:19:17: But at the end, an honest no is also a good answer.
00:19:22: So sometimes we just can't scale up or we need more time and then we take more time.
00:19:30: We don't do anything only to succeed.
00:19:34: An honest no is also a good answer.
00:19:35: I think that's a really takeaway.
00:19:38: And here you also see the difference in your customers.
00:19:44: The ones that really appreciate the honest no and then start working with you a way out
00:19:52: of it or the others that blame you for it.
00:19:57: And we learned that we don't need that kind of customers.
00:20:02: Do you find that clients are open to process consulting after a quality crisis or is the
00:20:07: mindset more focused on firefighting than transformation?
00:20:12: It's a good question.
00:20:13: It's a sensitive issue.
00:20:15: I know it is.
00:20:17: In general, what we see in the market is and that still surprises me, a lot of companies
00:20:27: still do firefighting instead of investing a little bit in preventive actions into project
00:20:34: management before it goes wrong and the catastrophe comes up.
00:20:40: I still don't understand why this is like it is, but it is how it is.
00:20:46: And maybe it's part of the industry and the mindset or the management of the companies.
00:20:54: I see there are the really well managed companies, but this is from the whole culture they have.
00:21:06: They take projects here, they invest from the really beginning.
00:21:09: They want to be really good.
00:21:12: They have a good communication to us and to their customers and others they try to hide.
00:21:18: They try to save.
00:21:20: I don't know.
00:21:21: And at the end, they have to pay like five times more than the others.
00:21:26: Is it good for us?
00:21:28: Unfortunately, yes.
00:21:31: Do I understand it?
00:21:33: No.
00:21:34: We try to help.
00:21:36: We offer solutions for both sides.
00:21:40: So it's okay, but is there real learning?
00:21:43: Difficult, yes.
00:21:44: Christian, I'm conscious that we're coming to the end of our time.
00:21:47: So maybe as a last question, you could talk a little bit about to what extent do you think
00:21:52: that operational excellence is driven by centralized governance versus local ownership in international
00:21:59: settings?
00:22:00: You've touched on this a little bit, but go deeper.
00:22:02: As I mentioned before, I decided the best way for us to be successful is a decentralized
00:22:09: system.
00:22:10: We follow minimum rules.
00:22:12: We follow regulations.
00:22:15: We follow certifications.
00:22:17: But I really experienced it myself again and again that being, for example, German, I will
00:22:27: never understand the Indians 100%.
00:22:31: So I need an Indian who understands the people, the culture, the language or that.
00:22:36: So from a process excellence side as well, they do sometimes some things they do differently.
00:22:42: And it's a difference if you have a huge machinery, you just transport to another country and
00:22:51: it runs and works the same way.
00:22:53: It works always.
00:22:56: In our case, it's a lot of people management.
00:22:59: So you have to consider other aspects as well.
00:23:03: And so we adapt a lot.
00:23:06: We have our core message.
