WRITTEN BY GARRETT DELPH, CEO AND FOUNDER OF CLARITY OPS
Turning a struggling business around is no small feat. As someone who has guided numerous companies through challenging periods, I can tell you that it requires a blend of strategic insight, operational adjustments, tactical flexibility, facts on the ground, and, most importantly, a willingness to confront hard truths that will be used to determine the right decisions for transformation. If you’re in a situation where you find yourself saying, “My business is experiencing painful and complex challenges,” take heart.
Below, I’ve provided seven proven, actionable steps that, if followed, will transform your business problems into solutions and turn your business around to deliver sustained success.
STEP 1: Be Humble & Honest: Admit There’s A Problem
The first and most crucial step in any business turnaround strategy is admitting you have a problem. Acknowledging that your business is struggling can be tough. Ego and fear are often the hurdles that leaders need to overcome before they can focus on fixing their business operations. Being honest and transparent about the truth that you have a problem is the foundation for building a transformational blueprint.
STEP 2: Understand Why Businesses Fail
To effectively turn around a failing business operation, you must understand why businesses fail in the first place. Outside of a radical inflection point or economic catastrophe, the number one reason businesses fail is because they lose sight of their most important asset: their operational engine. This engine comprises three critical criteria: People, Processes, and Performance. At Clarity Ops, we refer to this framework as P3™. Understanding how these three business engine components are connected and interdependent for success is crucial to solving your operational challenges. Losing sight of any of these elements will likely cause your business to falter.
STEP 3: Destroy Department Silos
If you permit department silos (aka business functions) to form, your business and people will suffer the consequences. Silo’s create blind spots and inhibit the flow of information. I’ve listed several other examples below of the consequences suffered by formed silos:
- Confusion and misunderstandings
- Project and product delays
- Missed deadlines
- Missed deliverables
- Errors and inaccuracy
- Increased costs
- Lost profits
- GTM delays
To turn your business around, you must militantly destroy these silos. By doing so, you will eliminate single points of failure and ensure your business knowledge and communication are transferred and transparent across to the relevant departments. Consider the analogy: if the foot said to the hand, “I have no need of you,” or if the arm said to the shoulder, “I can do it on my own,” the body would fail. Likewise, your business must become an expert facilitator in its cross-functional details and foster interdependence in order to succeed – in order to win. As a result, your people and teams stay informed, become clearly aligned, and your business will now reap all of the positive benefits as a result of this strategy.
STEP 4: Establish Communication Routes That Provide Transparency
Now that you’ve taken steps to eliminate the silos and gaps between your business functions, the next step is to architect new pathways and bridges of transparency within your organization. So, what does this mean, practically? For example, set up communication rhythms that Relay™ pre-decided information (i.e., greenlit projects, new initiatives, data, announcements, etc.) to the relevant departments, teams, and people. For example, if Marketing is preparing a new customer acquisition campaign, establish a requirement by the Project Lead to notify and/or meet with the other interdependent functions (i.e., Sales, Customer Support, Production/Manufacturing) so there is awareness. You can use communication channels like Slack, Skype, Microsoft Teams, etc.
Every department in a business has dependencies on other departments. And, so, it is in the business’s best interest to build out these transparent communication channels. And, moreover, establish guidelines and expectations for what, who, when, and how transparent communications will be delivered.
This transparency will create a culture of appreciation, trust, and accountability, which is essential for any successful turnaround. We introduced weekly steering meetings focused not on daily management but on the development of each department. These meetings are a platform for open communication and strategic planning which gives amazing benefits of speed, agility, and accuracy.
STEP 5: Knowledge Transfer
One of the most transformative steps in any business turnaround strategy is the effective knowledge transfer of the IP, directions, guidelines, and instructions that your P3™(people, processes, and performance) depend on.
Imagine a key strategic leader, in whom you’ve invested hundreds of thousands of dollars, perhaps millions, leave without passing on in an easy-to-follow playbook the IP and knowledge they have designed over time to execute in their role effectively. Without a roadmap or detailed instructions for their successors, your business could falter. In this scenario, your business requires insurance for those people. That insurance comes in two forms: an agreed-upon model and plan, and comprehensive directions and instructions on operating any and all positions should they not be available to do so.
Below are examples of our FASTT™ Operational Solutions which businesses achieve transformation using a permissions-based platform:
1. Define and Assign Permissions:
- Define your “Decisions Rights”
- Determine who can see what information
- Define who has permission to edit that information
- Ensure that the right people have easy access to the right information
2. 360-Degree Viewing Features:
- Macro and micro viewing options for detailed or broad overviews
- Clarity Ops Org Chart MAPS™ – a variation of ORG Chart views
- Nexa360™ – Easy to view and find roles, skills, capabilities, and certifications
3. Workflow And Activity Maps:
- Workflow Journey MAPS™ for step-by-step process guidance and instructions
- SOP Journey MAPS™ for easy-to-follow standard operating procedures
- Activity MAPS™ for a clear understanding of roles and responsibilities
- Use products like Loom to record recurring activities for training and other use cases
4. Knowledge Storage and Access:
- Relay™ Repo – Easy to access and find all knowledge documents
5. Benefits:
- Sets everyone up for success by providing clear, accessible information
- Turns chaos into order by eliminating stress, pressure, and confusion
- Increases happiness and job satisfaction through effective knowledge transfer
6. Continuous Improvement:
- Continuous updates to reflect the latest processes and best practices
STEP 6: Empower Cross-Functional Feedback
Creating systems to gather and analyze employee and customer feedback is crucial. Use this data to drive continuous improvement and deliver transparency to all cross-functional product contributors. Then, use the newly defined communication channels and deliver regular feedback loops to ensure that insights are continuously shared and acted upon. This not only enhances product development but also boosts morale, as team members feel heard and valued. Feedback loops cultivate an environment where continuous improvement and innovation thrive which lead to better business outcomes.
STEP 7: Eliminate Single Points Of Failure
A Single Points Of Failure (SPOF) is when there is a breakdown of one component in your supply or value chain—whether it’s a process, system, person, or resource—where the failure causes a critical part of business stop working and/or fail. These vulnerabilities often arise from over-reliance on specific individuals, outdated systems, or the absence of robust contingency plans. To safeguard your business, it’s important to eliminate these single points of failure. As a result, all dependencies on this part can no longer function, which often leads to major problems like delays, financial loss, and damage to the company’s reputation.
The Reality Of Operating & Sustaining A Growing Company
Turning your business around is undeniably challenging but absolutely possible with the right strategy. With strategic planning and clear objectives, you can lay a solid foundation for recovery. This journey involves admitting there’s a problem, understanding the root causes of failure, and creating a culture of open communication and accountability.
Break down silos, leverage cross-functional feedback, and set specific, measurable goals. Manage team and partner communications effectively and eliminate single points of failure. Adopt agile project management to keep your projects on track. Finally, also drive and propose solutions rather than just presenting problems. This proactive approach shows leadership and initiative, qualities that are crucial during a turnaround. It also fosters a problem-solving culture within your team, encouraging everyone to contribute to the turnaround efforts.
If you find these insights helpful, please share your thoughts in the comments section. I would love to hear your feedback and continue the conversation. 🙂
Also Read: Timeless Principles Of Leadership And Management
Have you determined that your business is in need of help and would like expert help from an Operational Partner? Join forces with Garrett Delph and Clarity Ops for the operational support, expert guidance, and efficient solutions crucial to your success. Ready to elevate your business? Connect with us today and make it happen!
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