White Paper: Leading a Turnaround as CEO – Driving Commercial Growth and Cultural Change
Executive Summary
Turnarounds demand more than just strategic realignment; they require bold leadership, decisive action, and a willingness to engage in every aspect of the business. As CEO, you must own the full P&L, make difficult decisions, and create forward momentum by reigniting commercial engines. This white paper outlines the approach to successfully lead a turnaround, with a focused lens on driving growth through new customers, geographies, channels, and products, while instilling a performance-based culture throughout the organization.
I. Taking Ownership of the Full P&L
A successful CEO in a turnaround scenario must be hands-on and deeply involved in both revenue generation and cost control:
Revenue Levers: Disaggregate revenue by product, customer, and geography. Identify underperforming segments and growth headroom.
Cost Discipline: Cut non-essential spending, align variable costs with revenue trends, and rationalize SG&A.
Working Capital: Improve inventory turnover, accelerate receivables, and manage payables.
Transparency: Implement clear, real-time P&L visibility for functional leaders. Set targets, cascade and measure results.
II. Rebuilding the Commercial Engine
A key pillar of any turnaround is reigniting top-line growth. Four commercial vectors require attention:
1. New Customer Acquisition
o Create segmented value propositions by channel.
o Refocus marketing and SDR efforts on high-opportunity targets.
o Become customer obsessed.
o Establish pipelines, and conversion rates and meet regularly with relentless discipline.
2. New Geography Expansion
o Identify underserved or whitespace territories based on market size and competitive intensity.
o Build lightweight, scalable go-to-market models (e.g., channel partners, distributors, inside sales).
o Localize product/service offerings to ensure relevance.
3. New Channel Development
o Expand beyond traditional channels (e.g., ecommerce, national accounts, digital marketplaces).
o Establish strong partnerships with key intermediaries.
o Adjust incentive models to support multi-channel sales.
4. New Product Introduction
o Develop a Stage-Gate innovation process to prioritize based on margin and market pull. Invest in ideation.
o Align R&D and commercial teams for faster go-to-market.
o Consider M&A for quick product line expansion if time-to-market is critical.
III. Making Difficult Decisions
In a turnaround, inaction is a greater risk than speed. There is a law of diminishing return once you cross a threshold of analysis thereby taking action quickly. CEOs must:
Restructure Leadership: Remove or repurpose leaders who are not aligned with the pace and ambition of the turnaround.
Reallocate Resources: Shut down legacy programs that no longer contribute to growth or profitability.
Communicate With Clarity: Be transparent about trade-offs and the rationale behind tough calls.
Model Accountability: Set the tone by making data-driven decisions and being accountable for outcomes.
IV. Driving a Performance-Based Culture
Lack of a performance based culture is often the silent killer in underperforming companies. A successful turnaround requires:
Clear KPIs and Scorecards: Define what winning looks like for every function and level.
Merit-Based Recognition: Promote and reward based on performance, not tenure.
Real-Time Feedback Loops: Create fast, transparent feedback systems to identify and correct performance gaps.
Leadership Cadence: Implement weekly performance reviews and monthly all-hands to reinforce priorities and celebrate wins.
Be discipline
Focus on Execution and develop clear roadmaps.
Conclusion
Being the CEO of a turnaround demands a unique mix of strategic vision, commercial tenacity, operational discipline, and cultural courage. Success comes from personally owning outcomes, rebuilding the commercial engine with precision, and creating a performance-based culture that refuses to settle for mediocrity. Done right, the turnaround becomes not just a rescue mission, but a launchpad for enduring success.
About the Author
Shawn Davies, a seasoned CEO and operating executive, has led multiple successful business transformations across manufacturing, distribution, and B2B services. From 2013 to 2019, Shawn served as President and CEO of the Kraus Group of Companies in Waterloo, Ontario. During his tenure, he successfully restructured and sold the PE-backed company in 2018.
At Kraus, Shawn implemented operational enhancements including procurement savings, conversion cost improvements, and new product development. He drove commercial success through the acquisition of new customers, expansion into new markets, and introduction of new products. Under his leadership, the company adopted a cohesive strategy supported by an aligned organizational structure, people development, and streamlined processes. These changes reduced complexity, lowered costs, and significantly improved speed of execution.
Shawn managed a diverse workforce of 550 employees across eight North American facilities while building a high-performing executive team and embedding a performance-based culture focused on growth and accountability.
This white paper reflects his firsthand leadership experience, and the pragmatic approaches required to achieve real-world turnaround results.