Have you ever wondered why an underperforming professional sports team can sometimes replace a coach or manager and, within a short space of time, the team performs well again? Ever seen a business on the brink of extinction come back as a mighty titan?
Sometimes good teams fail. It could be caused by internal friction, perhaps the clarity of vision and cohesion has been lost, or maybe there is a toxic leader in place. Whatever the cause, a new leader is expected to redirect that team and deliver commercial success quickly.
I made a career out of turning around underperforming teams. Private equity firms proactively seek them out to acquire. After all, there is far more value creation in an underperforming team than buying a well-oiled machine.
So, what steps can you take to redirect an underperforming team and achieve commercial success at speed?
One Radical Change
Rapid turnarounds require fresh thinking and interrupting existing patterns of behavior. When assessing a business and team’s performance, identifying one radical change creates more impact than making 20 small changes.
The major change you identify could be technology-related, a disruptive reorganization of leadership, a refocus of core products, or the creation of a new product.
Regardless of the one radical strategy you adopt, that decision must deliver significant profit upside and be a notable departure from the old routine. Experience and grind are necessary to identify such a change, and confidence is mandatory to press ahead in the face of your fear.
Oversell Your Vision.
There is no such thing as overselling your one radical plan or vision. That doesn’t mean promising results or changes you can’t deliver, but rather describing that vision at every possible opportunity.
More than talking about your vision, talk about the impact of your vision—how will it benefit the person you are communicating with? Will it get them recognized? Could it lead to a promotion? Perhaps a better bonus? How does it lead to something they can gain for future benefit? Selling the WIIFM aspect will ensure they buy into your vision with a sense of personal gain.
Just remember, results are the currency of belief. Make sure you highlight and sell the results to grow belief in your vision as it takes shape.
Seek ‘A-player’ Potential
During a turnaround, there is a temptation to clear the decks and bring in a team you already know and trust—don’t do that. All underperforming teams I worked with had ‘A-player’ performers that, for whatever reason, had lost their way—who hasn’t at some point in their career?
Unless there is an underlying behavioral issue, everyone has ‘A-player’ potential. In a turnaround, you need to identify those who can adapt within your timeline. Those who can’t, or those with behavioral issues, should be encouraged to find alternative paths.
Naturally, consult with your HR leader to manage the latter within the bounds of decency and employment law.
Measure, Revise, Iterate
No matter how confident or experienced you are as a leader, things will go wrong. We have more data today than ever before—unless a decision can sink your company, make it fast, measure it, and iterate to perfect the outcome. At Village Hotels, when leading a major technology overhaul, we acknowledged upfront that things would go wrong. It is only natural when you innovate in uncharted waters. The important factors were to be transparent, keep emotions in check, and pivot where necessary.
It’s important to note that the big picture—the radical plan—never deviates, but the path you take to achieve it often does.
Stay Humble
I must admit to binge-watching Buying Beverly Hills on Netflix. The No. 1 Rule of the agency resonates deeply with me—No Assholes. Despite the irony not being lost when watching the dramas unfold, the rule carries significant weight. At times, I was an asshole and it never served me well.
The Academy of Life brutally educated me that humility and being a good person despite your real-time emotions were always the optimal path to a successful turnaround. So, be a good person, stay humble, and above all, don’t be an asshole.
About the author: Rob Paterson has almost 2 decades of C-Suite experience including serving as CEO of Best Western Hotels Great Britain, a role he occupied for nearly 4 years. He now resides in the US running workshops and speaking professionally on leadership topics. Schedule a call to learn more about how Rob can help elevate your and your company’s performance.