Turnaround strategy enables senior managers of underperforming companies to understand the critical causes of poor results, in order to stem losses and restore growth. A well-crafted turnaround strategy leads clients to quickly achieve their full potential. Typically, this involves removing costs, restructuring finances and redefining strategic objectives. Turnarounds often call for building a stronger management team, making acquisitions or devising an exit strategy.

Bain's broad experience with turnarounds has led to a data-intensive approach, which begins with a strategic review of each underperforming unit. We don't assume that the existing organization should be preserved or that revenue should be protected at any cost. Frequently, effective turnarounds require that clients hire a new management team or shrink operations to regain profitability.

Bain doesn't recommend across-the-board cost cuts or the elimination of all discretionary spending. Instead, we investigate where and how a company can invest strategically or redefine its relationships to decrease spending in other ways.  Perhaps most important, Bain teams plan and structure their work based on the assumption that long-term projects do not necessarily lead to higher returns.  Our work is focused on our clients' biggest issues and the best way to get results.

To find out more about Bain's work in this capability area, please contact the practice.