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A turnaround strategy is a plan to save an organization, department or team that is failing. This typically requires fast and aggressive decisions in the context of constrained resources and large threats. The following are common examples of a turnaround strategy.TriageTriage is a process of quick decision making in an urgent situation. A turnaround may require large decisions to be made within hours. For example, if a trade dispute causes borders to close disrupting a supply chain, a manufacturer may have to immediately decide which operations need to shutdown.
ReplacementThe practice of replacing the management of an organization or team that has generated poor results. In some cases, a management team has produced good results but an organization is at risk of failure due to external factors such as a disaster or economic collapse. A replacement strategy may still be used where management has performed well. This is typically done where it is felt that insiders are likely to hold tightly to the status quo of the organization.
Business as UsualBusiness as usual is a basic principle for managing drastic circumstances whereby people are asked to continue with their work without becoming distracted by events of the day. For example, an airline with a drastic cut in revenue due to an adverse global event may ask employees to continue on without loss of enthusiasm despite pending job cuts.RetrenchmentRetrenchment is the process of reducing an organization including elements such as departments, teams, products, regions and business functions. This is a painful process that is often nonetheless necessary for the survival of an organization. For example, a firm that is facing a liquidity crisis may be able to secure additional funding based on the condition that they reduce costs by 40%. From an optimistic viewpoint this can be considered a process of creative destruction.
RepositioningRepositioning is the pursuit of creativity and innovation to find a leap forward that saves an organization. For example, an oil company that repositions itself as a solar energy firm that produces energy at great scale and low cost.RenewalRenewal is the pursuit of a long term strategy that will eventual pay off in significant ways. Once a firm stabilizes its finances a turnaround begins to invest in the long term goals of the organization. For example, an oil company that begins to recruit talent who can realize a shift to green energy.
Culture ShiftThe process of changing the culture of an organization. For example, shifting from a culture of resistance to change where people find excuses not to do things to a culture of aggressive change where people find ways to speed things up.|
| Type | | | Definition | A plan to save an organization, department or team that is failing. | | Related Concepts | |
Strategic Management
This is the complete list of articles we have written about strategic management.
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A list of techniques for developing and implementing a strategy.
A guide to the strategic planning process.
A guide to strategy implementation.
The common types of strategy monitoring.
A list of business weaknesses for strategic planning exercises such as swot analysis.
The definition of strategic management with examples.
An overview of the strategic development process with examples.
The definition of the external environment with business examples.
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