Turnaround outcomes are directly impacted by a number of factors. These factors can be categorized into three types of drivers: inherent risks, scope, and level of readiness. Key factors—including turnaround risk elements, turnaround readiness elements, and organizational capabilities—are quantifiable and can be used by leadership to not only identify problems before they occur, but to maximize the likelihood of turnaround success. But while these factors are identifiable and quantifiable, the level of control that managers have over each driver varies significantly.
Based on quantitative data collected from recent turnarounds, this presentation examines the three types of drivers and isolates their effects on turnaround performance. In addition to Turnaround Risk and Readiness indices, a new study associated with Organizational Capability will be summarized. This study serves as the precursor to a new leading indicator—Capability Index.