4 Strategies For Leaders To Turnaround Their Company

4 Strategies For Leaders To Turnaround Their Company

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We’re in tough economic times. When a business is struggling, many leaders turn to reducing headcount to save money. But that’s not the only option.

When Hubert Joly took over as CEO of Best Buy, the company was on the brink of shutting down. But Hubert brought the company back from the edge of destruction with an incredible turnaround--and he didn’t cut a single employee. In fact, he actually put more money into training, incentives, and wellness.

Hubert shows that by putting people first, remarkable turnarounds are possible. Because of Hubert’s innovation and risk-taking, Best Buy is now one of the most successful companies in the world. 

Here are the four levers of a turnaround according to Hubert Joly: 

  1. Grow the revenue line by focusing on employees and customers. Putting people first can lead to strong growth. 
  2. Cut costs around the non-salary expenses. Look for creative ways to cut costs and streamline operations. 
  3. Optimize benefits to foster greater wellness. Healthy employees (physically and mentally) perform better and have a better quality of life. 
  4. Headcount should be the last resort. If the first three levers aren’t enough, leaders may have to reduce headcount.

Business struggles can be challenging. But Hubert Joly and Best Buy show what can happen when leaders find creative, people-centric solutions for a turnaround. 

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Over the last 15 years, I’ve had the privilege of speaking and working with some of the world's top leaders. Here are 15 of the best leadership lessons that I learned from the CEOs of organizations like Netflix, Honeywell, Volvo, Best Buy, The Home Depot, and others. I hope they inspire you and give you things you can try in your work and life. Get the PDF here.

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Romulus Sirbu TD

CEO | COO | Global Director | General Manager Fortune 500 | Holistic Leader Connecting Resources With People | B2B & B2C Turnaround | #1 Fast Growing Market | Brand Of The Year | Amazon Published Author

9mo

great place to start from. Love it.

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Sharon Tiger 🐅

Founder | Advisor | Podcaster | Growth Wizard | Customer Woo-er | Culture & People Enthusiast | Rare Mom & Pediatric Sjögren's Advocate | Top LinkedIn Voice | Redefining Workplaces + Igniting Hearts, Sparking Change

1y

I think we all know it's not the only option. Give the problem a lifeline instead of an ax; slashing staff numbers! Jacob Morgan

Jason Thian

Managing Director at Credence | Changing Lives From Ordinary to Extraordinary | Committed to Reducing Inequality | Proud Dad of 2

1y

This is such a powerful example of how one leader was able to transform an entire company.

Lisle Head

Learning to truly let go and accept reality

1y

Love this how she focused on the people first. Too many CEO's walk into companies and cut the human resources first. This model needs to be shared with more

Laura Norton Jacquier

🇺🇸🇫🇷 Driving Engagement & Sustainable Growth through Communication & Change Management

1y

This is such an important message, Jacob Morgan, especially these days.

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