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Decline and Turnaround

Recognising decline before the financial indicators, the turnaround sequence, cutting well, and closure as an act of stewardship.

  1. 01

    Knowing When to Close Something

    Closing well is an act of stewardship, and it is available only while there are still resources to do it with. An organization that continues until it collapses has chosen the worst version by…

  2. 02

    The Honest Assessment

    Telling a board that the organization may not be viable is the hardest thing a leader does, and delaying it removes the options that would have made the conversation survivable.

  3. 03

    Cutting Well

    One round, deep enough, with the reasoning stated. The slow bleed feels humane and destroys the organization, because a second round teaches everybody capable of leaving that there will be a third.

  4. 04

    The Turnaround Sequence

    Stabilise, diagnose, cut, rebuild. The order is not a preference. Each stage depends on something the previous one produces, and reversing any two is how recoverable situations become terminal.

  5. 05

    Recognising Decline

    The financial indicators arrive last. Everything that would have told you earlier is qualitative, available for years beforehand, and reported to nobody.