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Turnarounds require 'enormous confidence'
Turnaround specialists must have an enormous amount of self-belief and confidence to be successful, according to an interim management specialist.
Gautam Thapar, who earned his reputation as a turnaround director for the paper firm BILT, explained that there are not strict rules for turnarounds, but that the executives must consider their priorities and ensure these are implemented.
Highlighting other requirements needed to become an interim specialist, Mr Thapar identified that good management skills combined with an entrepreneurial risk taking outlook can be a "great combination" in turnaround situations.
Speaking to the Wall Street Journal, the interim expert claimed that leadership change has become increasingly popular as there are "few bad businesses", just "bad management".
He told the news provider: "The complexities are enormous. More than anything else, you need to have enormous amount of belief and confidence, both in yourself and the people who are supporting you."
Last month, the Audit Commission emphasised that executives working for distressed organisations in the current economic climate require good financial management skills.
Charlotte Baker, Head of OdgersInterim Public Practice added: "Financial skills are important but wider commercial perspective is vital. Yes it is complex and a broken organisation will have issues with morale along with poor financial management.
However the reason that organisations fail is almost inevitably a consequence of poor leadership. It follows then that an interim specialist must be a leader whose judgement and independence is unquestionable. The clarity that comes from being an independent trouble shooter with no other agenda than to turn fortune around is often underestimated."
Categories: Board & CEO