How To Create Positivity During A Business Turnaround

Believe you can and you’re halfway there.

Theodore Roosevelt

A business turnaround can be a tough, gruelling process. It’s certainly not for the faint of heart. Sometimes a situation can get so bad that your university degree, your contacts and your experience can’t help you. Sometimes, it comes to a point where it is all heart.

In such a tough situation it can be very difficult but necessary to create positivity.

GET ‘YOUR’ MINDSET RIGHT FIRST IN A BUSINESS TURNAROUND

This is leadership. It’s easy to lead during good times. But true leadership is when the chips are down. This is when you lead.

As a leader, you need to get your mindset right. Don’t worry about anyone else just yet. If your mindset isn’t right, then you can’t create positivity in a business turnaround. Start with yourself first.

Here are a few tips to get your mindset right:

Don’t Run Away – Understand The Current Financial Situation

By understanding your true current financial position, you are not shying away from it. You need to tackle this thing head-on and not bury your head in the sand.

Talk To A Trusted, Positive Person

A business turnaround is seriously not the time to talk to a negative person. Now, more than ever is the time to talk to a positive person (spouse, friend, brother) who is going to tell you that you “…can do this!”

Say It Out Loud

Both secular and religious philosophy have agreed that there is great power in speaking as a form of affirmation and building up ones-self.

Do not skip over this one. Don’t dismiss this as some fluffy thought. There is so much power in this technique.

I challenge you to do this whenever you’re alone. Either in the car, in the bathroom – wherever. Say out loud, “I can do this! I will turn this thing around!” Say it again and again with conviction. Say it louder each time. 

You’ll start to notice your body language changing. You’ll sit/stand more upright, your breathing will change, you might even smile.

HOW TO CREATE POSITIVITY WITH YOUR TEAM IN A BUSINESS TURNAROUND

Now you’ve got yourself sorted, it’s time to talk to your team. Here are some tips I’ve learned over the years that are great for communicating and creating a positive mindset during a business turnaround situation. Some of these tips (and more) can also be found in ‘Extreme Ownership’ by Jocko Willink and Leif Babin.

DON’T BULLSHIT THEM

People can smell bullshit a mile off. Don’t pretend that you’re not in trouble. Leadership is transparency, acknowledging the situation and tackling it head-on with a fearless attitude. Be honest and tell them the situation.

Explain to your people that you personally have reviewed the financials of the business in detail.

Why? 

Because you need to give confidence to your team that you have personally done the work on understanding the problem – and you know what you’re talking about.

TELL THEM, “WE ARE GOING TO PUT IN A PLAN”

The problem with telling them that you already have a plan is that they will not be bought into it. They weren’t included in the plan. You need to create buy-in for your plan and the best way to do it is to ask your team to help you to create it.

Notice, I didn’t say you are to outsource the turnaround plan to your team. That’s not leadership. That’s backseat leadership, it’s lazy and it doesn’t warrant respect. If you’re a true leader, then lead goddamit!

TELL THEM THIS IS A NORMAL PART OF BUSINESS LIFE

Every business goes through tough times. Fact. There is nothing else to say on this.

TELL THEM YOU HAVE CONFIDENCE IN THEM

Put yourself in your team’s shoes. You’ve told them the business is in trouble. Wouldn’t you want your leader to tell you that they have every faith in you? Wouldn’t you want that motivation?

Then give it to them!

Even if there are members of your team who aren’t performing, this might be the opportunity they need to turn it around themselves. Remember: People will always rise to your level of expectation.