Facing customer dissatisfaction and increasing competition from sites like Amazon, Best Buy was declining fast. In September 2012, Hubert Joly, Best Buy’s current CEO, came to the rescue by creating a framework for managing a successful corporate turnaround. His transformational leadership helped Best Buy return 154% in the last three years. Here are seven of his rules for turning around a company.
Seven Rules for Leading Organizational Change
- Challenge employees to step up. Don’t get caught up on high-level strategy; instead, task employees with making small improvements.
- Improve profits without cutting jobs. Before resorting to layoffs, cut non-salary expenses; eliminate luxury perks; or choose more economical insurance plans.
- Encourage faster decision making. Start accomplishing transformation by not obsessing over making the “right” decision.
- Embrace the power of “and.” For example, you can cut costs AND increase revenue. Employees will be more efficient if they’re going for both.
- Stay positive. “You need to have a spring in your step, you need to be full of energy and lift. You need to have people believe,” Joly says.
- Hold workers accountable. Expect your employees to follow through on everything they say they will.
- Spread bad news faster than good news. If something goes wrong during your fast-paced transformation and word gets out, quickly follow up with a viable solution.
Takeaway: Best Buy's turnaround emphasizes the importance of staying positive and encouraging employees to get the momentum going: start first, obsess over strategy later.