Season 1, Episode 6
Thriving or Surviving:
How do I turnaround a business? Part 2
Episode 6: Thriving or Surviving: How do I turnaround a business? Part 2
In Part 2 of this special podcast series, we talk about Principle 2 and Principle 3 on how to turnaround a business.
Nothing is more important in executing a successful turnaround than a deep understanding of the financial and operational performance data of the organisation. When businesses fall on hard times, companies need to take dramatic action to generate rapid improvement in performance or they run the likelihood of going out of business completely. To ensure the leadership team is equipped with the right information, we will delve into Principle 2: Improving Transparency.
Transparency with your financial data immediately tells people you trust them, highlights problem areas and cuts out a lot of the politics that thrives in ambiguity. More importantly, it allows leaders to set meaningful targets with their teams and create the type of focus needed to turn things around.
In this special episode, we also talk about Principle 3: Creating a responsible and accountable culture.
Winning the trust of all staff, not just management, in a turnaround means empowering people to believe in themselves and fostering a sense of confidence that they have the support from management and the broader team to deliver. If the turnaround is successful, but the culture isn’t fixed, the business will end up in the same position again.
Leadership must ensure that expectations about meeting targets and completing high quality work are explicitly communicated across the business tracking progress against the written plan, and the overall strategy.