Turnaround & Transformation

Organizations of every shape and size and from every industry and sector, regardless of past successes and accomplishments, can find themselves in a situation where they are in decline.  Sometimes an organization recognizes the decline and quickly takes steps to ‘right the ship.’  As Jim Collins notes in his recent 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.  This requires a leader to reach 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 and reaching agreement around key business issues – resulting in 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.  This requires constant follow-up and communication.  Leaders must anticipate and manage through the “Dip” – when fatigue sets in.  Rewards and consistent reporting of progress - recognizing “over and above” effort is important.