Companies that can make a comeback:
- Jamba Juice
- Washington Mutual
Companies that have already made a comeback:
I suspect the companies on the comeback trail will need to look at companies have already made successful turnarounds. It is important not to repeat too many mistakes as it could doom a comeback.
Beyond this, companies need to focus in on what are their most important assets. The 80/20 rule can definitely make a difference. Spend 80% of your time on the 20% most important pieces of the company. A lot of these companies have valuable products and services that they haven’t figured out to capitalize on!
Eliminating dead-weight is essential. Often, a company on the mend requires a quick response. To be agile means to be light. Dead-weight slows a company down. Throw it overboard.
Execution is key. A lot of companies get tied down with too many ideas and products are not delivered on time or at low-quality. Planning, executing, and streamlining processes are important to increasing profit margins, speeding up production, and keeping customers happy.
Another area to look at is to have strategic alliances and partnerships. What are ways to enhance a business or make it more valuable without much upfront investment. A good partnership can benefit both sides and help a company mount a good comeback.
So to summarize, here are some ways to a successful turnaround:
- Study successful turnarounds in history
- Focus on most important assets
- Eliminate dead-weight
- Streamline processes
- Strategic alliances and partnerships