Acquiring and bringing a business back from the brink can be an exhilarating experience, but what makes it so, is the ever-present possibility of failure. Failure is one of the best ways to really learn things we thought we already knew. Here are five findings from a failed turnaround attempt:
People: The management team that caused the problem, or failed to prevent it, will almost never be capable of contributing to the solution. Loyalty won’t help; change your team – fast!
Urgency: Have a plan ready to go before you start. There’s no time to learn on the job. There’s no time to train leaders.
Clarity: Accept responsibility for understanding everything. Don’t assume, because an expert on your team has seen something, they approve of it. Ask. Don’t proceed until you both have clarity.
Information: A Buyer will never have as much information as a Seller. Do your due diligence – and trust your gut. It’s better to walk away from a potential winner than be stuck with a certain loser.
Communication: Sharing information with stakeholders can be a double-edged sword: if your success is in their best interest, they may collaborate to find a workable solution; if risk-averse they may pull out when needed most. Don’t expect outsiders to fully grasp your predicament, but communicating early helps avoid completely blindsiding them.
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