Successful turnaround management

Holger Buschmann

2006

Turnaround management is one of the greatest entrepreneurial challenges. Not only does it decide about a company's survival, it is just as important for the stakeholders involved. But what are the decisive factors for ensuring turnaround success?

Holger Buschmann studies the big corporate crises (102 companies) of the last twenty years in Germany. Based on financial accounts, interviews and the evaluation of some 4,000 press articles, he analyzes the influence of framework conditions, turnaround actions and process variables on turnaround success. The findings are surprising: In the past, the importance of sustainable growth has been seriously underestimated, while the effect of a few typical restructuring actions has been considerably overrated. The author presents guidelines for selecting and prioritizing restructuring actions, indicators for assessing turnaround probability and suggests comprehensive actions for making turnaround a success.