Advice for Turnaround Professionals

Walking into a company facing a ‘turnaround’ is at its best exciting and at worst harrowing. It takes strength of character because, whilst thriving companies exude confidence, in declining / distress situations you'll encounter a host of negative emotions. Fear of failure, of loss of incomes, of loss of reputation, denial, anger, hostility, suspicion and blame.

How we plan for this is crucial to success. Negative emotions are prone to producing unpredictable behaviours - and that's not just in the company. It goes for the bankers and investors as well. They backed this team and now things have changed.

External stakeholders will have these feelings too. Suppliers may well have been promised payment only to have been let down. They want their money and, whilst some will be incredibly supportive some will show hostility.

In summary though, if it's not really unstable, it's probably not a turnaround defined by the various bodies such as TMAUK, on behalf of whom I write after 31 years in the profession.

The action plan, or better; the plan for action, must start before you arrive.