Turnaround Management - Leadership and Turnaround Management

Leadership and Turnaround Management

1. Leadership and Turnaround Management
UNIT-5






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2. Leadership and Turnaround Management
❖“Leadership is the ability of a manager to induce subordinate to work with confidence
and zeal.” Koontz and O’Dennell

❖“Leadership is the exercise of authority and making of decisions” -Dubin, R

❖“Leadership is the activity of influencing people to strive willingly for group objectives.”
- George R. Terry

❖Turnaround Management - When a company that has experienced a period of poor
performance moves into a period of a financial recovery, it's called a turnaround.

❖A turnaround may also refer to the recovery of a nation or region's economy after a period
of recession or stagnation.

❖Turnaround management is a process dedicated to corporate renewal. It uses analysis and
planning to save troubled companies and return them to solvency, and to identify the
reasons for failing performance in the market, and rectify them.

3. Outfitting the Management Team

4. Outfitting the Management Team
Turnaround process is a team event and each functional area must do its job well.
1.The Chief Executive Officer – Possess the quality to determine what information
is needed to address the issues of organization and must be able to separate the
information which is needed and which is not needed.

2.Product Team – Not to develop a new product in the time of crisis and instead it
can product a better product quality at a very lower cost.

3.Sales Team – The old sales person should be treated well in the organization. We
don’t want to try with the new one as they may not know the customers.

4.HR team – The existing problem can be focused and not the new problems of the
employee can be taken in to consideration.

5.Special Team – Specific problems related to specific departments like Finance,
Marketing etc.

5. Personal Characteristics of Successful Turnaround Leader

❖Optimistic Leadership
❖Justice
❖People Skills
❖Creativity
❖Focus
❖Decisiveness
❖Resilience
❖Perseverance
❖Honest and transparent
❖Collaboration/Teamwork

6. Focusing on Present Situations


•Improvising the product.
•Bringing in new features.
•Reducing cost of production.
•Improvising the quality.
•Improvising the packaging.
•Increasing the customer services.
•Reducing operating cost.
•Reducing the lead-times.
•Holding lesser stock.
•Reducing transportation times.

7. Focus on Needs in Turnaround
Dr. N.G.P. ASC

Coimbatore, Tamil Nadu, India



Analysis of present situations.
Stabilizing of situations of crisis.
Redefining of the strategy to suit
present environment.
Financial restructuring.
Strategy implementation.
Change management.
Getting back to normal position.

8. Styles of Decision Making in the Turnaround Process
Dr. N.G.P. ASC

Coimbatore, Tamil Nadu, India

1.Directive decision-making - A directive decision-maker typically works out the pros and
cons of a situation based on what they already know. Their decisions are rooted in their
own knowledge, experience, and rationale, rather than going to others for more
information.

2.Analytic decision-making - Analytic decision-makers examine much information before
taking action. For example, analytic leaders rely on direct observation, data, and facts to
support their decisions.

3.Conceptual decision-making - The conceptual decision-making style takes a more social
approach compared to the directive or analytic methods. Conceptual decision-makers
encourage creative thinking and collaboration and consider a broad array of perspectives.

4.Behavioral decision-making - Behavioral decision-makers try to make sure everyone
works well together.

9. Organizational Change
❖It involves altering one or more of a company’s major components, such as its culture,
infrastructure, and internal processes. To guide your organization toward success, you
must be proficient at navigating change.

❖The changes are required for the current operations in which the leader can build the
team confidence and the strength in a competitive manner , giving reward to another
person for his potential and from the leaders side the special knowledge can be
inculcated by the expert power.

❖The trouble some companies need to focus the strategic planning implementation as
improving the product and its quality along with the customer service then the business
operations or creating a new joint ventures with the incremental improvement.
Measurement of Change
1.Adaptive changes - are small, incremental, and occur gradually over an extended
period.
2. Transformational changes - have a much larger impact and typically occur
dramatically and suddenly rather than incrementally.

10. Quality in the Managerial Process

✔Customer focus.
✔Leadership.
✔Involvement of people.
✔Process approach.
✔System approach to management.
✔Factual approach to decision making.
✔Mutually beneficial supplier relationships.

11. Dilemma of Management

❖Dilemma management is a systematic approach used by managers to
address and solve complex problems.
❖A dilemma arises when a manager faces conflicting goals or objectives, and
there is no straightforward solution at first glance.
❖It’s not merely a single specific situation; rather, it involves managing
multiple goals simultaneously.
❖Dilemmas often seem difficult to resolve, but effective managers engage in
dilemma management to tackle them systematically.

12. Dilemma of Management



Dilemma managerial Framework
•Identify the Dilemma: Recognize the conflicting goals or challenges.
•Analyze the Situation: Understand the complexities and potential
consequences.
•Explore Alternatives: Brainstorm possible solutions, even if they seem
contradictory.
•Evaluate Trade-offs: Assess the pros and cons of each option.
•Make a Decision: Choose the best course of action, considering the overall
impact.
•Implement and Monitor: Execute the chosen solution and monitor its
effectiveness.

13. Turnaround Management as a Skill