Top 3 Reasons Why to Consider a Corporate Turnaround

What is a "Corporate Turnaround" and how is it applicable to me as a leader, or to my business as a business owner?

That's what you might be asking yourself if you're reading this article.

Well here's the answer. It has everything to do with the long-term success of the business that you are operating. Let me tell you how, but first I'd like to demonstrate two very successful businesses that considered a "Corporate Turnaround" and who then implemented this turnaround successfully.

“Every problem is a gift –- without problems, we would not grow.” – Tony Robbins

Perhaps the most famous corporate turnarounds of all time are Apple Inc. and Netflix (Parrick, 2018).

Apple Inc. was founded by Steve Jobs and Steve Wozniak in 1976 - Jobs was kicked out of his own company back in 1985 only to be asked to return in 1997 after he has successfully founded and operated Next Computers and Pixar Animation Studios; Pixar ended up selling to Disney for close to a $1B after its successful production of Toy Story in 1995. When Disney saw the impeccable job that Pixar did with the film and learned of its team management and organizational structure, that's when they decided to purchase them. You can learn more about this story by reading Creativity Inc. At the same time as all this was happening, Apple was facing serious challenges and was about to declare bankruptcy until Jobs returned. Jobs managed to turn the company around to become one of the most profitable companies of all time - one of the first companies to ever reach a valuation of $1 Trillion! 

Netflix is another great example. It started off as a mail-order DVD rental service and is now the leading online streaming service with over 120 million users worldwide. What all began as a total random mistake, as its co-founder Marc Randolph said in an interview with Tim Ferris, Netflix has very quickly become a household brand. Netflix was quick to react when it saw the direction the industry was flowing. Giants such as Blockbuster went out of business because they didn't react quickly enough. Netflix can boast several Emmy and Oscar Awards for its independent films that it produces. Netflix is no longer some small mail-to-order DVD rental - they are an entire industry of their own! 

In both cases, Apple and Netflix were struggling, what do you think they had to do in order to turn their companies around and not only remain relevant but rather become industry leaders? They made the initial decision that they were going to embrace change. They then assessed where they stood as an organization. After that, they took massive steps of action to implement the changes that were discovered and the rest is history. Apple was on the verge of bankruptcy while Netflix wasn't turning profits for 6 years! They both had to assess what was going on with their business or they would be history as Kodak, Blockbuster, Nokia, and other similar companies. 

Organizational Assessment (OA) plays a major role in these situations, because of three major factors that require consideration: 

• Developments and advancements in technology (Olsen, 2018).
• Major organizational issues (Lusthaus, 2002).
• Low organizational performance (Lusthaus, 2002).

Here's how all this applies to you.

These days, most organizations are struggling to attain or attract employees. There are many businesses that are being sold and would like to ensure that the seller is getting the price that they want, or that the buyer is getting a good deal with the purchase. In either one of these three cases, an OA plays a critical role and the consideration for the Corporate Turnaround is imperative.

Don't get scared by the name Corporate Turnaround - for this purpose, let's call it Organizational Turnaround - it's just a term we will borrow for the sake of expressing the embracing of rapid changes that we are currently facing in the market.

With that being said, how are we embracing those changes?

Changes are scary and at many times uncomfortable, however, they are necessary because the external forces that surround your business are shifting ever so rapidly. Sometimes, it is very difficult to catch up or stay ahead of all these changes, yet, we are able to not fall too far behind.

In the case of selling or buying a business, we want to make sure that the business isn't too "outdated" so to speak. We want to make sure that they have safeguards in place that indicate their ability to shift, respond, and embrace change. In the case of retainment and attainment of new talent, similar safeguards are required to make sure that the talent remains inspired and motivated to keep working for the company.

All these are important considerations that business leaders and owners ought to keep in mind for the long-term sustainability of their organization. Otherwise, they run the risk of their businesses falling behind, hurting their bottom lines, and potentially becoming the next obsolete organizations like those listed above.

Are you going to be a Blockbuster or a Netflix?

Yermi Kurkus - Yermi has spent most of his career helping people at their lowest find meaning and purpose through proven methods that are built from psychology, philosophy, and mystical teachings. Yermi's approach is pragmatic and down to earth, thus coining the term Practical Mindfulness. 

Today, Yermi partners up with business owners, professionals, and individuals that want to become more "Exceptionally Irresistible" in their personal and professional lives, as well as helping founders build "Exceptionally Irresistible" systems in their businesses.

To learn more about Yermi Kurkus feel free to follow him on LinkedIn, Facebook, Instagram, YouTube. Or you can book your first 30-minute FREE consultation here.

References: 

Lusthaus, C. (2002). Appendix 2: An Organizational Assessment Sample Report Outline: In Organizational assessment: A framework for improving performance. Ottawa, Canada: International Development Research Center. Retrieved from EBSCO ebooks in the Touro Library.

Lusthaus, C. (2002). Chapter Seven: Implementing Organizational Assessment. In Organizational assessment: A framework for improving performance. Ottawa, Canada: International Development Research Center. Retrieved from Ebscohost ebooks in the Touro Library.

Olsen, T. (2018). Turnarounds: Strategic opportunities to improve. Chemical Engineering Progress, 114(8), 46-50. Retrieved from ABI/Inform Collection Proquest in the Touro Library

Parrick, M. (2018). 11 Corporate Turnaround Success Stories. Retrieved: https://brownandjoseph.com/blog/11-turnaround-success-stories/