4 Strategies For Leaders To Turn Their Company Around

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We’re in tough economic times. When a business is struggling, many leaders turn to reducing headcount to save money. But that’s not the only option.

When Hubert Joly took over as CEO of Best Buy, the company was on the brink of shutting down. But Hubert brought the company back from the edge of destruction with an incredible turnaround--and he didn’t cut a single employee. In fact, he actually put more money into training, incentives, and wellness.

Hubert shows that by putting people first, remarkable turnarounds are possible. Because of Hubert’s innovation and risk-taking, Best Buy is now one of the most successful companies in the world.

Here are the four levers of a turnaround according to Hubert Joly:

1. Grow the revenue line by focusing on employees and customers. Putting people first can lead to strong growth.
2. Cut costs around the non-salary expenses. Look for creative ways to cut costs and streamline operations.
3. Optimize benefits to foster greater wellness. Healthy employees (physically and mentally) perform better and have a better quality of life.
4. Headcount should be the last resort. If the first three levers aren’t enough, leaders may have to reduce headcount.

Business struggles can be challenging. But Hubert Joly and Best Buy show what can happen when leaders find creative, people-centric solutions for a turnaround.