Turnaround Leadership: Combining Strategy and Heart to Inspire Change
Leading during a company turnaround is one of the most challenging tasks a leader can face. It’s a test of vision, resilience, and adaptability. When everything feels uncertain, the way leaders act, think, and manage their teams has the power to steer the organization toward recovery—or further into crisis.
Here are some guiding principles for leadership that I have found useful during a turnaround:
1. Set a Clear Vision and Communicate It Relentlessly
In times of uncertainty, people crave direction. As a leader, your role is to provide clarity. Define a vision that is realistic yet inspiring. Outline the steps the organization must take to reach stability, and communicate this vision consistently across teams. Transparency builds trust, even when the news isn’t favorable.
Example: Instead of saying, “We’re in trouble,” articulate, “Here’s where we stand, what we’re working on, and how we’ll get through it together.”
2. Act Decisively, But Stay Empathetic
Turnarounds often require tough decisions—cost-cutting, restructuring, or even layoffs. The key is balancing execution with humanity. Make decisions based on data and priorities, but acknowledge the emotional weight they carry. Your team will remember how you treated them during difficult times.
Tip: Involve your team in problem-solving. When people feel heard, they’re more likely to stay engaged and committed.
3. Rebuild the Culture Intentionally
Company culture can take a hit during a turnaround, but it’s also an opportunity to reshape it. Revisit your core values and ensure they align with the new direction. Encourage behaviors that support collaboration, adaptability, and accountability.
Action Plan: Celebrate small wins to rebuild morale and foster optimism. Recognize individuals who embody the desired culture.
4. Focus on Teams, Not Just Individuals
Turnaround success isn’t achieved in isolation; it requires a collective effort. Evaluate team dynamics, not just individual performance. Are the right people in the right roles? Are teams aligned and working cohesively toward shared goals?
Strategy: Cross-functional collaboration becomes essential in turnarounds. Break down silos and create opportunities for teams to learn from one another.
5. Strengthen Relationships with Peers
Your leadership team is your most important asset during a turnaround. Build trust and alignment with your peers to create a unified front. Disagreements will happen, but handling them constructively is critical to maintaining credibility and focus.
Mindset: Prioritize collaboration over competition. A turnaround is no time for egos or hidden agendas.
6. Lead by Example
During a turnaround, everyone is watching you. Your actions set the tone for how others behave. Model resilience, adaptability, and a willingness to do what it takes to succeed. Show up with energy, even on hard days, and your team will follow suit.
Conclusion: Steer with Conviction and Care
Turnarounds are moments of transformation. While they bring immense challenges, they also create opportunities to redefine the company’s purpose and culture. As a leader, your ability to act decisively, communicate transparently, and care deeply for your people can make all the difference.
Remember, leadership during a turnaround isn’t about perfection—it’s about progress. Show your team the path forward, one step at a time, and lead with both your head and your heart.