Hannah Spellmeyer
VP, People
Slingshot Aerospace
Navigating Complex People Leadership Challenges: A Journey Through Coaching, Financial Restructuring, and Organizational Change
As a People Leader, you often find yourself in situations that require not just strategic thinking but also a deep understanding of human behavior and organizational dynamics. I've had the opportunity to lead several initiatives that ranged from executive coaching to financial restructuring and organizational change. Here’s a glimpse into three distinct scenarios I navigated, the decisions we made, and the lessons learned along the way.
Coaching a High-Profile Executive
A particularly noteworthy-experience was coaching a former senior executive who had previously led operations for a MAANG in China and LATAM before moving on to a C-suite role at one of the world's largest video game companies in the world. Despite his pedigree and litany of successes, he was struggling to connect with his direct reports in this smaller startup environment. He approached me one day, concerned about this disconnect. It was clear to me his reports didn’t really know him on a personal level and their interactions were strictly transactional. For example, he was unaware of basic personal details about his team members, which contributed to the lack of connection.
This realization led to a candid conversation between us wherein I shared my observations and he graciously took them in. We also conducted a 360-degree review that highlighted a need for improved communication and clarity, especially in our remote environment. We developed an action plan focusing on building relationships through personal engagement and transparency. While the journey wasn’t entirely successful in the end, the CEO’s willingness to be vulnerable, even briefly, allowed for some improvement in his relationships.
Lesson Learned: Even the most accomplished leaders can benefit from guidance. Being a truth-sayer is a sacred role; offering candid, gracious feedback can foster growth, even if the immediate outcome isn’t perfect.
Transitioning Equity Structures
Another complex situation I led was at a seed-stage startup, where we had to transition from RSUs (Restricted Stock Units) to ISOs (Incentive Stock Options) after the market downturn. Initially, the company offered single-trigger net-settlement RSUs to employees after a massive $450 million Seed round. However, as the market fell, the business faced a significant tax liability.
Working closely with our investors, including a16z, and our finance leader on various scenarios, we arrived at the conclusion that we must transition to ISOs. However, we needed to balance that shift with the retentive upside of single-trigger RSUs in a turbulent market. After our yearly 409A valuation exercise, we shifted to ISOs for all incoming new hires and future refresher/merit grants. Existing employees retained their RSUs, with the anticipation of potentially adjusting to double-trigger RSUs in the future.
While this change didn’t affect most of our employees at the time, we simultaneously launched several internal communications initiatives to ensure that the changes were transparent and our team members understood the implications. In the end, our concerns about this pivot in total rewards strategy were far greater than the actual cultural impact of the change, but I have no regrets about being overly prepared. This shift was crucial for our financial sustainability.
Lesson Learned: It’s nearly impossible to take away a benefit once given, and financial decisions should be based on moderate business cases, not just the windfall moments. In these situations, it’s vital to consider what’s best for the business, even if it requires personal sacrifice. And, as that same CEO once told me, what often seems like a disaster is often just an inconvenience.
Implementing a Reorganization
Currently, I’m navigating a reorganization at a company I joined just 6 weeks ago. This company, like many in the tech industry, faced their fair share challenges in 2023.
The need for this restructuring stems from several issues: Our products weren't meeting market needs effectively, our approach to engineering, sales, and research lacked scalability, and there was a lack of clear accountability across teams. Through this reorganization, we aim to establish clear points of responsibility (what we call "single belly buttons"), combine similar work streams for efficiency, emphasize the critical role of Product Management, and enable our Research & Innovation teams to focus on their core missions.
My role in this process has been to facilitate the preliminary work and drive the project forward. I’ll be the first to say that I'm not an expert in astrophysics or aerospace engineering, functions that are critical to our business. Accordingly, I do not own the decisions that will shape our organizational structure. But, even if this was a standard B2B SaaS play and I knew it well, the fact remains that business owners and executive leaders are responsible for the shape and success of their teams.
This situation highlights an important point about HR leadership. While HR professionals are often expected to be "fixers" - and we are indeed tenacious, resilient, and creative - we cannot and should not try to know everything or do everyone's job. Instead, our role is to enable and empower our leaders to make informed decisions and implement changes effectively.
So far, this initiative has mostly been met with relief and enthusiasm, though it's still early days. We’re focusing on a comprehensive communication strategy, ensuring clarity and alignment across the board.
Lesson Learned: When implementing a reorg, start with the biggest picture - what work needs to get done? - and gradually get more granular. Spend an equal amount of time on the communication strategy as on the actual reorganization. Consistent messaging is key to ensuring a smooth transition.
Advice for People Leaders
Coaching Executives: Be direct yet gracious. Acknowledge strengths but don’t shy away from honest feedback. Building trust through transparency can significantly impact leadership effectiveness.
Financial Restructuring: Make decisions based on long-term sustainability rather than short-term gains. Be willing to put the business's needs above personal benefits.
Organizational Change: Plan meticulously and communicate clearly. Align your talking points across all levels to maintain consistency and clarity.
Final thoughts
As HR leaders, we navigate a complex landscape where organizational strategy intersects with individual growth and team dynamics. Each of these experiences—from coaching C-suite executives to restructuring equity and implementing large-scale reorganizations—reinforces a crucial truth: our role transcends traditional HR boundaries. We are strategic partners, change catalysts, and guardians of organizational culture. Our success lies not in having all the answers, but in asking the right questions, fostering open dialogue, and creating environments where both individuals and the organization can thrive. By balancing empathy with business acumen, and flexibility with principled decision-making, we can guide our companies through challenges and towards sustainable success. Remember, in the ever-evolving world of people leadership, our greatest asset is our ability to learn.