You may ask, “What is a Turnaround Mindset? Surely, Turnaround is all about financial management and strategic planning”. Certainly, a sound plan that is economically viable is important. However, these ingredients are not enough on their own to successfully transform the fortunes of a challenged organisation. Ultimately, turnaround (or transformation) requires radical change and successful change demands great leadership. By extension, great leadership demands the right mindset.
Imagine a situation where those leading the turnaround are paralysed by fear of failure and loss and struggling with anxiety about the future and what may or may not come to pass. You would not expect them to make objective high-quality, decisive, decisions or lead with energy, enthusiasm and confidence, all of which are needed to successfully implement the plan.
We know that what we do is shaped by what we think and how we feel. So negative thoughts and feelings lead to negative behaviours and attitudes, which are a barrier to great leadership. You know the ones: anger, frustration/impatience, blaming and harsh judgement, a reluctance to communicate and a withdrawal to avoid difficult questions or conflict, being overly controlling and overly/unreasonably demanding.
I have spent most of my career helping organisations face existential threats, and I know from experience that stress, pressure and anxiety impact every relationship whether inside or outside the organisation and even into the home life of those charged with leading and implementing the turnaround plan. What experience tells me, is that these relationships are the ones that inevitably make or break the turnaround strategy, so they must be healthy for support to be secured.
What is a Turnaround Mindset?
I’m not sure there is a scientific definition but again, from experience, a mindset that:
- Embraces change and challenges as opportunities rather than merely threats.
- Demonstrates a personal desire to learn, grow and develop, accepting (self-awareness) that one may have gaps and shortcomings and areas of improvement.
- Is empathetic, tolerant, compassionate, and understanding. That builds trust rather than erodes it.
- Is positive and confident that transformation is possible. I’m not suggesting living in denial, but it is possible to be fully cognisant of the challenges ahead and remain positive.
- Determined and committed. Too often have I seen a turnaround plan come unravelled due to a lack of commitment and conviction. We may see this as indecisiveness or procrastination. Turnaround is not easy and demands 110% effort and an ability to overcome the inevitable bumps in the road.
- Willingly takes ownership of the situation now and in the future. Dodging accountability and pushing this onto others will destroy relationships and erode commitment.
- Recognises that not having all the answers is not a weakness. Great leaders recognise their gaps and seek help from others to fill them. That is where we come in of course!
Developing a Turnaround Mindset
There are a number of critical stages:
Embracing fear
I’m sure you will have realised as you read my description above that to develop a turnaround mindset you will inevitably have to confront fear (including worry and anxiety) and the discomfort of risk and uncertainty (e.g. stress and pressure). Turnaround demands stepping outside of one’s comfort zone and doing what needs to be done despite the fear. Don’t get me wrong, I am not saying that you must be free of fear. Feeling fearful or at least worried is inevitable, so the key is being able to maintain a turnaround mindset and do what needs to be done despite the feelings of fear and worry.
Practising Acceptance
There must be a recognition that turnaround, and its associated need for radical change, is necessary. There is often a lack of acceptance whether through denial or an inability to read the warning signs.
With acceptance comes objectivity and clarity of mind and thereby the ability to communicate with conviction (and possibly an appropriate level of assertiveness!) with those stakeholders that are key to success. When we are caught in negative reactivity from fear, we rarely communicate well (or at all!) as we withdraw to avoid difficult questions and conversations.
Acceptance (“It is what it is”) also means we do not dwell on the past. Certainly, we must learn from the past but that is much different than being burdened by regret or guilt or feeling the need to blame and criticise. These negative emotions lead to depression, suffering, and a lack of objectivity, and soon empty one’s tank of energy!
It also means we avoid becoming paralysed by the fear of tomorrow. We can plan for tomorrow with positivity, trusting in our capacity to make a difference and do the right thing, even whilst remaining cognisant of the challenges faced. But one must avoid getting sucked into the rabbit hole of what may or not come to pass which leads to hopelessness, anxiety and indecision. Again, these negative emotions rob of us of energy and enthusiasm and the capacity to act.
Being courageous
Change inevitably comes with the potential of resistance and even conflict from key stakeholders. Some stakeholders will not want to change or will not like the change proposed. The trust of some may also have been lost and need rebuilding.
Not only that, but success can also never be guaranteed and the unexpected can be expected! There are so many variables it is impossible to plan for every eventuality. As such, agents of change often face criticism and blame for their decisions when they do not meet the expectations of others and plans are not achieved or require revision.
So, turnaround is a high-risk business, and it takes great courage to climb into the arena of life and face the doubters and nay-sayers. To push ahead with conviction and determination despite opposition and criticism.
How can Lunesdale Consulting help?
Well, I am very glad you have asked!
We specialise in supporting organisations, and those who own and lead them, to navigate economic and strategic challenges which are causing serious under-performance and risk terminal decline and failure. We are troubleshooters and agents of change and equip leaders with the tools they need to effect radical transformation.
Our services wrap around the complete process of turnaround and transformation by supporting leaders and the organisation in three critical areas:
- Understanding the current situation clearly and, critically, identifying the underlying causes of the issues faced rather than just the symptoms.
- Helping craft a workable and achievable plan that will solve the problem and be capable of a successful rollout.
- Supporting leaders as they overcome the barriers and challenges of implementation (arguably the hardest phase of the process).
Bringing clarity and focus to messy, complex and emotive problems, so that otherwise unseen solutions become visible
Importantly, though, we also help leaders and business owners sleep at night. Through the sharing of our expert skills, knowledge and experience, we support the development of the turnaround mindset and personal resilience. By enabling leaders to see and understand the challenges faced and the opportunities for future success, we build hope and enthusiasm and bring clarity and certainty to what must be done. We also help them develop coping strategies so they can lead effectively even in the most challenging circumstances.