Sunday, August 02, 2009
How not to turnaround a business
Many smart people and companies try to turn around a business, whether one they have owned a long time, or recently bought. I three biggest reasons for failure are: inadequate funding or resources; going against the heritage positioning; and failure to learn from the past, the one over-riding reason is hubris. Frequently, there is no recognition of difficulty or that anyone else can teach us anything. If a company does not suffer from this, then once an effective strategy is in place, the next failure is in execution, such as a tendency to cut corners, or to make people who have never done it before the responsible ones. It can be done, but is rarely done as well as it could be.