Turnaround of operational hotspots into profits

18. April 2023


The down-to-earth adjustment of the necessary objective of your operating units follows clear strategic guidelines for profitability. It enables an objective cost reduction as part of the new dimension of the organisation.

Today I would like to support you on how to achieve the “turnaround of operational hotspots into profits”. Allow yourself 2 minutes of your time for the “successful turnaround”.

What is the typical starting point when operational hotspots jeopardise your turnaround?

In one of my previous motivation sessions, I explained “how winners utilise strategic need for change”.

Winners mainstay strategic changes through a consistent method of the so-called congruence model.

What follows when winners turn operational hotspots into profit is the embodiment of the so-called target operating model (TOM for short), i.e. an efficient and constructive improvement of the necessary target state of your operating units.

This TOM target state follows clear strategic guidelines when it comes to profit and enables an objective cost reduction as part of the new extent of your operating units. In other words, not benchmark-driven budget cuts, which usually prevent accepted responsibility.

On the contrary, integration clears the way for TCQP (Time, Cost, Quality, Performance) to naturally take responsibility for the respective operating units and can be measured by new KPIs and an alternative management can be installed.

If this sounds too “theoretical”, then you should try at least five specific core business transactions and check them against your operating units along the new TOM objective and then modify.

How can you successfully implement this turnaround?

Act steadily, instead of step-by-step. Don’t spill the beans when it comes to ambition and goals. Determine ability necessities from KPIs. Let go of functional silos with “plateau or gym mode”. Unleash obscure discoveries with the “Las Vegas principle”. Stop sinking in quicksand with quota grading. Prevent “PowerPoint Business Theater”. Connect and integrate experienced and younger people.

Outlook on the use of tools and methods in the turnaround

Be motivated with the next motivation session, in which I will share with you our experiences of “what winners use in the turnaround”.

Until then, feel free to ask your questions and send us your suggestions for the impulse “turnaround of operational hotspots in profits” via our Impulse Contact website or arrange a 15-minute impulse call at a time of your choice.


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