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1. Craft a Concise, Actionable One-Page Plan

Identify the three to five actions that, if executed, will fundamentally improve your business.

Focus and Simplicity. A successful turnaround begins with a clear, concise plan, distilled onto a single page. This plan should identify the three to five critical levers that drive the business, focusing on actions that yield the greatest impact. This simplicity ensures that everyone in the organization can understand, remember, and act on the plan.

Four Cornerstones. The one-page plan should be structured around four key cornerstones: Market, Financial, Product, and People. Each cornerstone should have a memorable catchphrase that resonates with employees. For example, at Continental Airlines, these became "Fly to Win," "Fund the Future," "Make Reliability a Reality," and "Working Together."

Action and Measurement. Each item on the one-page plan should be assigned to an executive or team, with detailed plans for execution, including targets and stretch goals. Regular measurement of progress is essential to ensure accountability and drive results. This disciplined approach transforms a strategic vision into tangible action.

2. Build a Fortress Balance Sheet for Stability

Make sure you have adequate time to execute your plan by having plenty of liquidity (cash), along with debt covenants and maturity that match your company’s needs.

Cash is King. A fortress balance sheet provides the financial stability needed to execute a turnaround plan. This requires maintaining ample liquidity, including cash reserves and available credit lines. Running out of cash is a death sentence for a struggling business.

Leverage Management. Understand the appropriate level of leverage for your company, avoiding both excessive and insufficient debt. Model various scenarios, including worst-case scenarios, to determine how the balance sheet would be stressed. Match debt maturities to business needs, ensuring that debt doesn't come due at inopportune times.

Detailed Measurements. Develop a detailed set of measurements for each item on the one-page plan. Track progress against goals and stretch goals to ensure that the company is on track to achieve its financial objectives. This disciplined approach to financial management is essential for building a fortress balance sheet.

3. Prioritize Revenue Growth Over Cost Cutting

Profitably grow your business to optimize returns for your shareholders and employment opportunities for your coworkers.

Growth Multiplier. Focus on profitable revenue growth, as it generates significantly higher market value than cost reduction. Empirical evidence suggests that a dollar of profit from revenue growth is worth four times more than a dollar of profit from cost reduction. While cost management is important, it should not overshadow the pursuit of growth.

Sales Cures All. Growing revenue and providing great customer service is critical at all levels of the organization. Employees and teams that drive revenue growth and enhance customer satisfaction should be rewarded. This focus on growth creates a positive cycle, leading to increased profits and job creation.

Growth Creates Jobs. Strong growth allows businesses to fulfill their mission of creating jobs. When companies grow, they provide more opportunities for individuals to support their families and achieve personal fulfillment. This focus on job creation benefits society as a whole.

4. Cultivate a High-Performing, Aligned Team

Build a board and organization capable of executing your plan and then properly motivate everyone involved.

Board Composition. A great board is essential for guiding a company through a turnaround. The board should have a diverse set of backgrounds and experiences, including individuals with CEO experience, financial expertise, and risk management skills. Board members should be honest, courageous, and committed to the company's success.

Executive Team Selection. Build a senior management team capable of executing the Go Forward plan. Don't delay in making necessary personnel changes. Apply consistent tests to evaluate candidates, focusing on intelligence, teamwork, and cultural fit. Prioritize hiring individuals from within your network.

Team Empowerment. Empower the senior management team to run their own divisions and make decisions consistent with the Go Forward plan. Foster a culture of open communication, collaboration, and accountability. This empowers the team to take ownership of the turnaround process.

5. Empower Employees to Drive Results

Empower, motivate, and encourage your co-workers to make decisions consistent with your plan.

Inmates Run the Asylum. Empowering employees to make decisions is crucial for a successful turnaround. This requires creating a culture of trust, where employees feel comfortable taking risks and making decisions consistent with the Go Forward plan.

Communication is Key. Continually communicate the Go Forward plan to all employees, ensuring that everyone understands the company's goals and how they can contribute. Open up direct lines of communication to leadership, allowing employees to share ideas and concerns.

Culture of Empowerment. Foster a culture that values positive behavior and discourages negativity. Reward employees who go above and beyond to serve customers and contribute to the company's success. This creates a positive and supportive work environment.

6. Integrate Life Priorities for Fulfillment

Develop a plan for your life around the things you consider most important so that you avoid getting sidetracked by less important activities.

Work/Life Integration. Strive for work/life integration rather than work/life balance. This involves merging your personal and professional lives to create a more fulfilling and significant existence. Identify your "blue chips," the things that matter most to you, and prioritize them in your daily activities.

Decision-Making Framework. Use a consistent framework for making life decisions, considering the impact on faith, family, friends, fitness, and finance. This helps to ensure that decisions align with your values and priorities.

Personal Go Forward Plan. Develop a personal Go Forward plan that outlines your goals and priorities in life. Regularly review and adjust the plan to ensure that you are staying on track to achieve your desired outcomes. This provides a roadmap for living a more meaningful and fulfilling life.

7. Practice Thoughtful Generosity for Significance

Provide for those in need. Generosity is the key to happiness and fulfillment and the only antidote to materialism.

Money Out, Not Money In. On the personal side, focus on giving back to society and the world. Generosity is the key to happiness and fulfillment, and the only antidote to materialism. Use your platform to help and encourage others.

Financial Legacy. Consider the kind of financial legacy you want to leave that blesses others. What are you doing now to make that legacy a reality? What might your own version of "Money Out, Not Money In" look like?

Thoughtful Philanthropy. Give thoughtfully, regularly, and cheerfully. Integrate giving into your life and involve your family and friends. Hold nonprofits accountable for delivering results. Limit the amount of your estate that goes to your children, and give away your money in your lifetime or shortly thereafter.

8. Embrace Decisive Action Over Analysis Paralysis

The speed of the boss is the speed of the team.

Velocity is Key. In a turnaround, speed is essential. Avoid analysis paralysis and empower employees to make decisions quickly. It's better to make twenty decisions a day, get two wrong, and fix those two, than to take a month to make the "perfect" decision.

Make Mistakes Early. Identify a quick, clear path to success and make key decisions within the first twelve months. This allows time to recover from any missteps and grow the business more profitably.

Empowerment and Trust. To move quickly, you must trust your team and empower them to make decisions. This requires clear communication of the Go Forward plan and a culture that values action and accountability.

Last updated: April 1, 2025