Turnaround & Transformation

Organizations of every shape and size and from every industry and sector can find themselves in a situation where they are in decline regardless of past successes and accomplishments. Sometimes an organization recognizes the decline and quickly takes steps to ‘right the ship.’ As Jim Collins notes in his 2009 book, How the Mighty Fall, often an organization can find itself further down the path of deterioration before it recognizes the extent of its failings. These are organizations in need of a turnaround or transformation – a condition which, if not addressed with sufficient resources in an aggressive time-frame, will result in long-term damage or destruction of the enterprise.

There are steps that leaders can take to lead the turnaround effort:

• First: they need to assess the current reality by reaching out to internal and external stakeholders. Understanding customers, suppliers and the internal capabilities of the leaders and employees provides a broad and deep perspective of the business situation.
• Second: support must be generated for a shared vision for the future, including achievable goals and a rational time frame. This requires informed discussion with input and dialog from key stakeholders who reach agreement around key business issues. This process results in the creation of a strong coalition.
• Next: the future state must be extended to the broader leadership including key players, transition teams and team leaders. This requires comprehensive communication regarding the vision and objectives, projected benefits as well as contingencies and clear metrics for accountability.
• Finally: the organization must execute. Execution requires constant follow-up and communication. Leaders must anticipate and manage through the “Dip” as fatigue sets in. Rewards and recognizing “over and above” effort is important.

Organizations facing a turnaround or transformation situation come to us for help with:

• Assessing the organization’s current state and gaining an understanding of their current cultural strengths and weaknesses. Understanding where they are in black and white (or in our case – living color) helps them create concrete plans for the future.
• Assessing their current leadership and “people” needs. Is the organization engaging and leveraging their human capital? Do they have the bench strength within the organization and what steps do they need to make sure they have the right people in the right places?