Turnaround, Restructuring and Transformation

Go find the problems and fix them - sounds simple. What are you really up against? Have fundamental market shifts happened so quickly that you're unable to pivot fast enough? Are people in denial, pointing fingers, defending the status quo, or avoiding decision-making? Are they aware but too busy managing crises to diagnose and fix root causes? Are they working on solutions but not aligned, causing competing priorities and wasted time and effort? Are they simply too busy with their day jobs to drive meaningful change? 

How can you stabilize immediate financial crises, optimize operations, and formulate long-term strategic plans to ensure sustainable success? A structured, adaptable approach and dedicated resources are essential. Here are a few success factors to keep in mind:

• Form a holistic fact base. The problem may not always lie where you think it does. Looking at the entire value chain will help identify upstream contributors and understand downstream implications and trade-offs. If you're only treating the symptoms, you may end up causing more harm than good.

• Clarify your exit strategy. Are you in it for the long haul, or are you looking to stabilize and exit?

• Sufficiently resource the effort. You'll need people dedicated to coordinating the change, and time from people involved in executing it.

• Focus on the most impactful levers. Identifying a select few focus areas will help you accelerate stabilization. 

• Achieve quick wins. Making an impact quickly will build momentum and support for the effort.

• Test, learn and scale. Starting small and slow can help you go faster and finish sooner. Solve for one thing, then gradually expand.

• Be prepared to take drastic measures. You may have to change long-standing cultural norms, operating locations, staffing models, customer relationships, suppliers and business processes. You may be faced with shrinking or divesting poor performing assets and making strategic choices to reallocate resources elsewhere.

• Don't go too far too fast. Over-simplifying and over-prioritizing short-term gains have the potential undermine your ability to succeed in the long-term. Do the analysis and exercise caution to avoid the Pyrrhic victory.

• Reset your long-term strategy. Communicating a new vision and goals will provide the foundation to energize teams, prioritize activities and guide decision-making.

• Future proof your operating model. Develop your capabilities, offering portfolio, sales plans, operational processes, technology, organization structure and culture to capitalize on market opportunities. 

• Establish strong leadership support and governance. Form executive steering committees to convey urgency, champion change, provide direction and make decisions. Provide structure for projects through a program management office. Gain buy-in and ownership for outcomes from the people that you will depend on to realize your objectives.

• Remember your customers. When it comes to your struggles, your clients are most interested in what it means for them. Keep them happy.

• Remember your people. Transformations can provide attractive new opportunities for growth and development. Find ways to retain and repurpose your top talent and minimize unwanted attrition.

• Monitor and adapt. Establish clear metrics to track progress, and be prepared to adjust your approach as you learn. Successful transformations often evolve as new insights emerge.

Every business transformation is unique. These practices should be tailored to your specific situation, challenges, and opportunities. The key is to approach the process with both rigor and flexibility, always keeping your long-term vision in sight while addressing immediate needs.