Recognizing When Turnaround is a Must
The most important part of the whole exercise is to recognize when / if a turnaround is required
or if some path adjustment will do. Doing frequent turnarounds may not be good for an organisation as it has some disruptive effects also.
In my opinion when the profit is continuously going down
for more than three terms or is contrary to the general business trend
, there is a need for turnaround.
Another method could be using control chart techniques of SQC to recognise if the deviation in profits is significant and needs a turnaround.