When a company is declining, it is difficult to turnaround things & bring it back in a profitable position.
I tell every CEO whom I work with, “During a turnaround, motivate your employees to cut down costs & help them find creative ways to increase revenue. Then, trust their ability to adhere to it.”
Business turnarounds are tough, painful.
To gain profitability, you have to launch a new product or idea which generates demand among the consumers.
However, it can lead to further bleeding of cash in the organisation which is already facing finance-crunch.
At that time, the role of the CEO becomes indispensable.
Instead of blaming employees for over-utilising funds, he should tell them to take responsibility for profitability.
The employees must be encouraged to take ownership, closely watch costs and reduce unnecessary expenses.
Blame-game can deteriorate confidence of employees, and they may lose their productivity.
When CEO inspires the employees to take ownership of the operations, people focus on taking care of the customer and gaining profitability simultaneously.
Board room meetings don’t turnaround companies, employees do.
What’s your take? Do you know a turnaround case study which inspired you?
#Turnaround #BusinessTurnaround #Strategy