Successful turnaround leaders start by making clear contracts with the key stakeholders about the future picture of success. They then have the right kind of strong personality and strategic skills to do the successful turnaround.
Some people score highly in having both the right kind of strong personality and strategic skills.
Some people may have a strong personality but not the required strategic skills.
Some people may have the strategic skills but not the required strong personality.
Different people follow the turnaround approach in different ways. Whatever route they take, however, it often involves focusing on the following themes.
Success
Successful turnaround leaders start by making clear contracts with the key stakeholders – such as the Board – about the specific goals to achieve. They make clear contracts about:
The real results to achieve – the future picture of success;
The key strategies to follow – including the support required – to achieve the picture of success;
The things they will do to get quick successes and keep the stakeholders informed about the progress towards achieving the picture of success.
They reassure the stakeholders that they will be accountable for delivering the goals. They also make sure, however, that they have the authority and autonomy required to achieve the picture of success.
Strong Personality
Successful turnaround leaders have the right kind of strong personality to deliver the goods. They sometimes demonstrate the qualities described by Jim Collins in his book Good To Great. They combine personal humility with professional will.
Such leaders aim to be positive, professional and show respect for the organisation. They aim to build on its strengths whilst also making the strategic decisions required to achieve the goals.
They then need to build a positive environment in which motivated people can perform superb work. They may aim:
To communicate the specific goals and the benefits of achieving the picture of success;
To communicate the strategies – together with the reasons for these – for achieving the picture of success;
To make clear contracts with people about their best contributions towards achieving the picture of success.
Such leaders focus on the positive energy in the organisation. They build on the people who want to work towards achieving the goals, for example, rather than try to persuade the unpersuadable.
They then aim to get some quick successes. This can reassure the key stakeholders plus also build momentum. They also demonstrate the following quality.
Strategic Skills
Successful turnaround leaders have good strategic skills. Bearing in mind the results to achieve, they follow the strategies that provide the greatest chance of success.
Such leaders may be positive, but they keep focusing on the picture of success. When helping a company to turnaround, for example, they make decisions that provide wins for the company, customers and colleagues.
They recognise, however, that sometimes they will need to make challenging decisions. Bearing this in mind, they then aim:
To clarify the real results to achieve – such as the short, medium and long-term pictures of success;
To clarify the possible options going forwards – together with the pluses and minuses of each option;
To settle on their chosen option, translate this into a clear action plan and do their best to achieve the desired results.
Different leaders use different models for making strategic decisions. Some take the following approach.
Successful Turnaround
Successful turnaround leaders love the challenge of turning around a failing system and making it work. They have a strong belief in their own ability to make this happen.
Some also recognise this can be a lonely job. They therefore take around with them a core team of people who can help to deliver the goods. This is a common practice in sports and other professional fields.
Such leaders are good finishers. They believe it is important to complete the turnaround successfully and never declare victory too early. They have the resilience to overcome obstacles and achieve the goals.
Different turnaround leaders may also have different definitions regarding what constitutes finishing. Some like to reap the fruits of their labours and stay to build something that achieves more longer-term sustainable success.
Some have a different approach. One leader expressed this in the following way.
“I love to go in and fix things. Maybe it is because of my background as an engineer. I analyse what’s wrong and get a picture of what is required. Then I implement the tough decisions required to make it work.
“Interestingly, once it is functioning well, I tend to lose interest. I can take something from 3/10 to 8/10 but am not motivated to take it to 10/10. I then get fascinated by the next turnaround project.”
Some turnaround leaders also like to produce a success story that describes the steps that were taken to deliver the goods. This sometimes focuses on the following themes.
The Success Story
The specific challenge we faced and the desired picture of success;
The specific strategies that were followed when doing the turnaround on the way towards achieving success;
The specific results that were achieved in terms of delivering the picture of success;
The specific lessons that were learned – such as the things that went well and the things that could be done better in a potential future scenario.
There are many ways to do successful turnarounds. One approach is to make clear contracts with the key stakeholders about the future picture of success. It is then to have right kind of strong personality and strategic skills to do the successful turnaround.
Let’s return to your own life and work. Looking ahead, can you think of situation where you may want to follow elements of this approach? How can you do this in your own way?
If you wish, try tackling the exercise on this theme. This invites you to complete the following sentences.
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