Turnaround with style

ROSABETH MOSS KANTER

In turbulent times, turnarounds are increasingly a fact of life. Some companies need to be rescued from the brink of extinction, others need a course correction while still profitable, or a momentum shift because of disruptive new technologies. Be prepared for bad news: the situation is always worse than you think.

One symptom of decline is withholding information. Inconvenient facts are papered over. Decisions are made behind closed doors. Accusations and blame abound. So, it is almost impossible to know the full extent of problems.

Facing the facts squarely is a turnaround imperative. Open dialogue encourages everyone to see their role in the fixup… Identify the core assets that create value for customers, and refurbish them… In a nutshell, find a meaningful unifying purpose.

Teams and companies with negative momentum are characterised by fragmentation: a drift into many activities that get tacked on and stay, becoming ends in themselves. Territories get hardened, and people seem to be out for themselves. It is too easy to lose sight of the larger purpose of being together. Invest in team-building — a cliché but still true. Give voice to people who haven’t been heard. Think small as well as big.

Turnarounds operate on several time frames. The key is to spot symptoms of decline before they accumulate, and then shift toward the actions that build positive momentum.

From “How to Turn Around Nearly Anything”