6 Proven Strategies for Effective Turnarounds

Turnarounds are critical to any business. Whether a struggling company or a department needs a boost, turnarounds are necessary to get things back on track and achieve success.

However, turnarounds can be challenging and require a strategic approach. In this article, we’ll explore six ways to achieve effective turnarounds to help you achieve your goals and improve your situation.

Why Are Turnarounds Important?

Turnarounds are essential for businesses because they help identify and address issues hindering growth and success. They provide actionable insights that can help companies make intelligent solutions and improve their overall performance.

Identify the Root Cause of the Problem

The first step in any successful turnaround is identifying the root cause of the problem. This requires a thorough analysis of the business, its processes, and its performance.

Conducting a root cause analysis can help you pinpoint the issues causing problems and develop a targeted plan. These could include outdated processes, ineffective leadership, or a lack of resources.

Develop a Clear Plan of Action

Once you have identified the root cause of the problem, it’s essential to develop a clear action plan. This plan should outline specific steps and strategies for addressing the issues and turning things around.

It’s crucial to have critical stakeholders in developing this plan to ensure buy-in and support. This plan should also include measurable goals and timelines to track progress and hold everyone accountable.

Communicate Effectively

Effective communication is crucial during a turnaround. It’s essential to Keep all stakeholders informed and involved in the process to ensure everyone is on the same page and working towards the same goals.

Communication should be transparent, honest, and frequent. This will help build trust and keep everyone motivated and focused on the turnaround efforts.

Focus on Employee Engagement

Employee engagement is a critical factor in any successful turnaround. Engaged employees are more likely to be motivated, productive, and committed to the business’s success.

During a turnaround, it’s essential to focus on employee engagement and involve employees in the process. This could include seeking their input, providing training and development opportunities, and recognizing and rewarding their efforts.

Utilize Technology

Technology can be a powerful tool in a turnaround. It can help streamline processes, improve efficiency, and provide valuable data and insights.

Consider implementing technology solutions that can help address the specific issues identified in the root cause analysis. This could include project management software, customer relationship management (CRM) systems, or data analytics tools.

Continuously Monitor and Adjust

A successful turnaround is an ongoing process. It’s essential to progress subtly and make adjustments to ensure the plan is effective and achieves the desired results.

This could involve conducting regular check-ins with stakeholders, tracking key performance indicators (KPIs), and making changes to the plan as needed. Remaining flexible and adaptable during a turnaround is crucial to ensuring its success.

Real-World Examples of Effective Turnarounds

One real-world example of an effective turnaround is the story of Starbucks. 2008, the company was struggling due to an economic recession and increased competition. Starbucks implemented a series of changes to turn things around, including closing underperforming stores, cutting costs, and focusing on customer experience.

Another example is IBM’s turnaround in the 1990s. At the time, the company faced significant financial losses and struggled to keep up with competitors. To turn things around, IBM implemented a new business strategy, focused on innovation and customer needs, and invested in new technology. These efforts helped IBM become one of the most successful companies in the world.

Who Is Responsible for Turnarounds?

Turnarounds require a team effort, and the right people must be involved. This could include executives, managers, and employees from various departments.

Having a designated leader or team overseeing the turnaround efforts and ensuring they stay on track is also crucial. This person or team should have strong leadership skills, communicate effectively, and have a strategic mindset.


Turnarounds are necessary for any business and require a strategic approach to be successful. Companies can achieve effective turnarounds and goals by identifying the root cause of the problem, developing a clear plan of action, communicating effectively, focusing on employee engagement, utilizing technology, and continuously monitoring and adjusting. With the right strategies and a dedicated team, any business can turn things around and achieve success.