Turn-around - The Different Beast
Turning around an existing business is most probably the most challenging and complex task one can undertake. It is not enough being experienced in successfully running a business; a turn-around requires a totally different mindset, skill set, insights into human behavior, and leadership. Often, as business case studies have evidence for, brilliant and successful business owners are unable to lead a turn-around and, as well, brilliant turn-around specialists are not necessarily the right leaders once the business is running successfully again.
Many reasons lead a once successful business into a dead end situation, where only a complete turn-around can save the business from disaster. While external factors in some cases may contribute significantly to mounting problems for a business, it is however, often the Leadership Team, which is running the business into the ground.
If you are facing a turn-around situation, whether in your own company or in a business you are about to buy, here are some useful points to observe:
- The leaders and managers in place won’t tell you voluntarily what’s really going on. Either they just don’t know or understand it, or they themselves are the main reason for it.
- The employees are in fear to lose their jobs thus almost paralyzed in their thinking. What they are looking for is the leader saving them…
- If you buy such a business be aware that neither the broker nor the actual owner will volunteer any information beyond the scope of your questions.
- A turn-around is like extinguishing a fire: You don’t have the time to carefully plan each step; instead you must have the ability to quickly assess the situation and make a decision. In order to do that you need a lot of experience.
- You will be the one addressing the issue to the management and the employees, with a compelling “state-of-the business” address! You must be concise and to the point making them aware that tough decisions will be made to get the company back to be a successful business. You have only one chance to prove that you are the right leader.
- You can’t do the job without having the right people in the right place. Therefore select carefully who you want in the most critical positions. Those people are not necessarily the most “easy-going” people. You need people whom you can trust that they will tell you their point of view “unfiltered”…even if you might not like that.
Walter H. Groth
Walter H. Groth is the founder of Concise Coaching: Effective business coaching facilitating the improvements for the business owners through raising their awareness and igniting positive change, which not only translates into business related benefits but also into their personal lives. You provide the fuel…we provide the spark!
http://concisecoaching.blogspot.com
contact: walter.groth@gmail.com
Tags: bottomline, Growth, leadership, management, Marekting, Market, money, success, Turn-around