{"id":362926,"date":"2025-06-04T22:14:05","date_gmt":"2025-06-05T02:14:05","guid":{"rendered":"https:\/\/chiefexecutive.net\/?p=362926"},"modified":"2025-06-05T11:51:16","modified_gmt":"2025-06-05T15:51:16","slug":"how-to-lead-through-a-turnaround","status":"publish","type":"post","link":"https:\/\/chiefexecutive.net\/how-to-lead-through-a-turnaround\/","title":{"rendered":"How to Lead Through a Turnaround\u2014Starting on Day One"},"content":{"rendered":"\n

Editor’s note:<\/strong> In his book From Panic to Profit<\/em>, Bill Canady discusses his role in leading a private equity-sponsored company\u2014which he calls “Rolling Thunder”\u2014through a significant turnaround. The company, a recent acquisition by the PE firm, was experiencing declining financial performance and faced issues such as inadequate financial data, poor analytics, and limited tracking capabilities. Additionally, tax complications, severance obligations, and contractual cash requirements were contributing to a tightening cash situation. In the following excerpt, he shares how he handled the daunting challenge of getting the company back on track.<\/strong><\/p>\n\n\n\n

As a new CEO, one of the most daunting moments is stepping into your first company-wide town hall. The stakes are high, with team members often anxious about the future, wondering what your leadership will mean for them and the business. How do you address their concerns while rallying them to your vision?<\/p>\n\n\n\n

When I first took the helm at Rolling Thunder, I was acutely aware of the tension that exists between executives and employees, especially in times of uncertainty. I knew I needed to bring transparency, clarity and urgency to the table. Here\u2019s how I tackled it in the first 100 days\u2014and how you can too.<\/p>\n\n\n\n

Step 1: Define and Communicate a Clear Goal<\/h4>\n\n\n\n

Before the town hall, I set a bold five-year goal: $2.5 billion in revenue, high teens margins and $300 million in EBITDA. Setting this ambitious target was vital, but it wasn\u2019t enough to just set it. I needed to share it and bring the entire company into the conversation.<\/p>\n\n\n\n

I communicated this goal through an open letter to the entire company, explaining where we were, where we needed to go, and how we planned to get there. I made it clear that we were facing tough times\u2014missing sales targets, rising costs\u2014but this wasn\u2019t just about cutting for the sake of cutting. We were focused on simplifying the business and honing in on what really mattered. The goal itself would act as a north star, but the first step was earning the right to grow by simplifying operations.<\/p>\n\n\n\n

Step 2: Frame the Strategy<\/h4>\n\n\n\n

A goal is just a point on the horizon; the strategy is the map that gets you there. In the second stage of our turnaround, I outlined a four-step framework to bring our business back to health:<\/p>\n\n\n\n

    \n
  1. Get a goal:<\/strong> Already accomplished with the new revenue target.<\/li>\n\n\n\n
  2. Frame the strategy:<\/strong> In May, our executive leadership team (ELT) would reconvene to finalize our strategy, separating the vital from the trivial.<\/li>\n\n\n\n
  3. Build the structure:<\/strong> We\u2019d organize around key customer segments and focus on innovation.<\/li>\n\n\n\n
  4. Launch the action plan:<\/strong> We would quickly implement the tactics to make it happen.<\/li>\n<\/ol>\n\n\n\n

    This framework wasn\u2019t about perfection; it was about making informed decisions and moving forward.<\/p>\n\n\n\n

    Step 3: Address Anxiety Head-On<\/h4>\n\n\n\n

    The town hall was designed to be candid, but it had a clear structure. The first 60 minutes were devoted to addressing the current reality. I shared the tough truths\u2014missing targets and rising costs\u2014but also framed them in a way that showed the path forward. I didn\u2019t sugarcoat it, but I also didn\u2019t dive into despair. This is where the\u00a0Stockdale Paradox\u00a0(a leadership and mental resilience concept popularized by author Jim Collins in his book Good to Great<\/em>) came into play: facing the brutal facts of the situation while maintaining an unwavering faith that we would prevail.<\/p>\n\n\n\n

    The message was simple: we would work together to turn things around. But we had to act fast. I also shared our immediate action plan\u2014reducing unnecessary expenses and focusing exclusively on initiatives that drive revenue. This gave people clarity on what they should expect.<\/p>\n\n\n\n

    Step 4: Listen, Then Act<\/h4>\n\n\n\n

    The second hour of the town hall was devoted to Q&A. No CEO can come up with all the answers, especially in a turnaround situation. This was my opportunity to listen\u2014to the questions, concerns and ideas from employees. In preparation, I had asked employees to submit questions beforehand. This ensured that the most pressing concerns were addressed, and it gave me a better understanding of what was happening on the ground.<\/p>\n\n\n\n

    It was also an opportunity for me to demonstrate transparency. When I didn\u2019t have an answer, I said so. And when I did, I was direct about the steps we\u2019d take.<\/p>\n\n\n\n

    The Results: From Panic to Productivity<\/h4>\n\n\n\n

    By following this framework\u2014setting a clear goal, outlining a practical strategy, addressing concerns directly and listening actively\u2014we transformed a room full of anxiety into one of motivated engagement. When people understand the challenges ahead but also see that there\u2019s a real plan in place, it\u2019s easier for them to rally behind that plan.<\/p>\n\n\n\n

    I\u2019ve seen companies pivot from panic and uncertainty to productive confidence the moment they grasp the notion that growth isn\u2019t something you wait for\u2014it\u2019s something you earn. And they are capable of earning it. The transformation doesn\u2019t happen overnight, but it starts with clear leadership, transparency and the belief that the company can overcome its challenges and thrive.<\/p>\n\n\n\n

    In those first hundred days, we didn\u2019t just lay the foundation for a new direction. We shifted the culture. And that\u2019s where the real work begins.<\/p>\n\n\n\n

    Adapted with permission from the publisher, Wiley, from <\/em>From Panic to Profit<\/a> by Bill Canady. Copyright \u00a9 2025 by Bill Canady. All rights reserved. This book is available wherever books and eBooks are sold.<\/em><\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Your first hundred days as CEO require transparency, clarity and urgency. Here\u2019s how one leader tackled it\u2014and how you can too.<\/p>\n","protected":false},"author":31776,"featured_media":369427,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[871],"tags":[],"class_list":["post-362926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leadershipmanagement"],"acf":[],"yoast_head":"\nHow to Lead Through a Turnaround\u2014Starting on Day One<\/title>\n<meta name=\"description\" content=\"Your first days as CEO require transparency, clarity and urgency. 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