How to turn around a company?

Well this is not a ‘how to guide’ – just a talk that I had with a ‘turn around’ specialist. I met him at a social function and what he said was interesting. Hence the blog article.

Many of the things he told me were intuitive. So I will not dwell on things like cut air travel, save electricity – he himself told me that such actions are normally energy saving and money saving, so it needs to be done. Such actions also help send a message through the organisation.

He said certain things like:

– he met the people who had parted from the company over 5-6 months before his arrival. He met people who had spent more than 3 years even if they had left more than 2 years ago.

– he met dealers, clients, retailers – with a good track record over the past 6 years. Some of them had ceased to do business with the company for various reasons. He says it was a revelation about what people were willing to say AFTER they had got all their dues.

– he met the sales team, and asked them to point of 10 people without whom the company could not survive. He then zeroed in on some of those who had been seen to be ‘useful’ and found some of them very poor performers 🙂

– those who could not see his vision for the next 3 years were SACKED. He felt it was a waste of time and energy trying to get them to his side.

he also tole me a lot on what he did on the admin, Hr, operations side…but those will do in a different post.

This turnaround was in an engineering company based in Mumbai – it had a manufacturing and a service division also.

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3 Responses to “How to turn around a company?”

  1. great work and process. i’m sure he would have achieved his results…

  2. Pretty much true. I worked in US for a online retailer which is extinct now. During its last days they brought in a turn around executive who did all these above. At last he couldn’t achieve much of what he wanted to do.

    He sacked each and everyone. 40000 people on the same day. The company filed for bankruptcy, liquidated its assets to pay its creditors and at last he walked away with 2-3 million dollars for doing all the above within a span of 3 months.

    After a month I heard about him in the news that he is doing turn around efforts in a different dying organization. He does that for a living. Didn’t know whether to luugh or cry when i thought of him

  3. Hello Subra

    Thanks for the wonderful post. Point no. 3 is really interesting one which i guess is easily overlooked as the sales guys are always asked bout numbers..
    Looking forward to the next one on the same topic..


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