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ARTICLE · 01 MARCH 2005

Avoiding the Seven Deadly Sins of Turnaround Managers

Turnarounds often fail for the "right reasons." There may be no existing core business, and the company does not deserve to be saved. Although no one enjoys seeing good people thrown out of their jobs, these cases leave little room for second-guessing.

United StatesStrategy
Miles Stover
Miles Stover

By Miles R. Stover, President, Turnaround, Inc.

Turnarounds often fail for the "right reasons." There may be no existing core business, and the company does not deserve to be saved. Although no one enjoys seeing good people thrown out of their jobs, these cases leave little room for second-guessing. More troubling are the situations in which good people lose their jobs because a turnaround manager veers from the fundamentals and commits one or more of these seven deadly sins.

1. Taking charge slowly.

The turnaround professional should not start off gently by holding meetings, visiting scores of locations and making plant tours, conferring and discussing the situation with too many people, reading reams of memos, or appointing numerous task forces.

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