Expert article · Turnaround · 2 min read
Turnaround: keep what works, create what is new
Dr. Klaus-Jürgen Wolf, Founder & Managing Partner
Bankruptcy is rarely a verdict on the product or the workforce. It can be the chance to reset the company clock to zero, with calm and a clear plan.
Bankruptcy is not always the sign of a poor product or of a workforce that did not give its best. Often management has acted against ethical and commercial rules. Bankruptcy then offers the chance to reset the company clock to zero and start again.
A turnaround is the supreme discipline of change management and asks everything of everyone. Often no stone is left unturned. What matters is an experienced turnaround manager who brings calm to the workforce through good leadership. That way the fear of losing jobs is reduced step by step and trust is built.
Eight steps everyone knows
Once this basis is in place, the turnaround is planned in eight steps, presented to the workforce and then implemented swiftly. Every employee should know these steps. The proven routine quickly creates transparency and small wins. These restore trust in the company and raise commitment.
A turnaround takes place under high pressure. Setbacks have to be planned for, financially, administratively and technically. Risk management is therefore mandatory and has to be practised down to the smallest unit.
With calm and a professional process, many companies can be more than saved. For a machinery manufacturer, the road out of bankruptcy led to 8 per cent EBIT after two years and back to the top of its niche.