3 Ways to Initiate a Turnaround and Which One You Should Choose

In our last article, we described 5 signs that are often seen in projects which are in disarray. If you noticed them in your project and have correctly decided on a turnaround, the question now is how to successfully initiate it. It is of vital importance to act deliberately, strategically and determinedly so you do not throw the already insecure project team off even more. Often, politics also play a large role; the old project leader must be protected and should not be denounced.

From our experience, there are three ways in which a turnaround can be brought about with the help of a single turnaround manager (TAM). These three approaches are all different when it comes to the introduction and the role of the TAM. Depending on the phase of the turnaround, all three versions show advantages and disadvantages, which is why a combination of these options has proven to be the optimal decision in practice.

1. The turnaround manager as an external reviewer

The first phase – the turnaround assessment – can be initiated without much ado via an “external review”. The use of the TAM as an external reviewer has many benefits for all sides. Firstly, the word “turnaround” should not fall yet, officially. An external review as such is nothing unusual, can easily be justified and leads to less uproar than the official announcement of a turnaround where no stone remains unturned. The external role is ideal for the initial analysis of the project’s status, the conduction of interviews and to work through documents and the results up to that point. The TAM can put the focus on project analysis and is not taken up by operative tasks.

In this version, however, there is less mutual obligation to start with, which is advantageous both for you and the TAM. The TAM can get an idea and assess the situation, while you can get a feeling for the work of the turnaround manager before you give them free reign and, for example, admit the substitution of the previous project leader. wrong staffing of key roles.

2. The turnaround manager as project leader

The most obvious variant is the substitution of the previous, possibly failed project manager for the TAM. However, no serious turnaround manager would take on the role of project leader before thoroughly assessing the situation first. Furthermore, you lose an important advantage by immediately having your TAM take over the responsibility over the project and using him operatively and then has to not only analyse the situation but also take care of the daily business of a project which is in shambles – they can make no clean cut with a well-founded overview. The existing “rituals” are continued under new leadership and can only be replaced one by one.

If in your concrete situation you realise that the replacement of the current project leader is an urgent, immediate measure, the TAM should take over the leadership role after their assessment phase and define the further measures while already having this role. Like a change of managers in football, this drastic measure can, with this new and unspent power from outside, lead to a surge to go through the team, ending their rapid descent. Simultaneously, however, the blame for the bad situation is inevitably channelled entirely onto the previous project leader.

3. Joker: The turnaround manager as PMO

As a final option, we want to show you a clever version with a lot of flexibility – the use of the turnaround manager as PMO (project management officer). With this role, the TAM is immediately incorporated into the project organisation and, from the role description of a PMO, has the necessary powers for the creation of measures and to secure their implementation.

The use as PMO is especially opportune if you want to keep your current project leader (based on the assessment’s results), or if you must keep them (based on your company’s policies). It is, however, of vital importance that the current project leader accepts the role of the turnaround manager and cooperates with them unconditionally. The PMO role also offers the TAM the possibility of switching into the role of project leader later on, if necessary. Reasons for this can always be found and the TAM will then have already settled down and established themselves in your project. leader, or to exchange him for someone else.

Our advice – adapt the role in accordance with the phase

We structure our turnaround efforts in three phases: „Assessment and Analysis”, “Defining Measures” and “Correction and Turnaround”. In practice, it has proven itself to adapt the role of turnaround manager to the phase accordingly. We recommend an external entry, followed by taking over the project responsibility as project leader.

As described in the first segment, the introduction as “external reviewer” has advantages for both sides. If the turnaround is easy in its complexity, the TAM’s services may no longer be necessary after defining measures, without leaving a gap in the project’s organisation. If you want the TAM to conduct the turnaround, however, and implement the new measures, we recommend giving the TAM the operative responsibility for your project and thereby giving them necessary organisational vigour. If this is not possible in your project, the use of the TAM as PMO is a viable and flexible alternative.