Use an Insider or an Outsider as a Turnaround Manager?

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Turnaround Management > Best Practices > Use an Insider or an Outsider as a Turnaround Manager?

Use an Insider or an Outsider as a Turnaround Manager?
Anonymous
I wonder, what is preferable? Use an insider for a turnaround, because (s)he knows the complexity of the situation very well, or an outsider, because (s)he can act independently and without any attachments to the current situation and stakeholders?
 

 
Insider or an Outsider as a Turnaround Manager?
Edgar Zuņiga
Based on my experience, you need to build a team including outsiders and insiders. Insiders help to design the strategy for the turnaround and outsiders to implement it.
 

 
Insider or Outsider Turnaround Manager?
Gian
Good question, but (as usual) the answer is: "it depends".
What is leading the company to disappointing results? If it is inertia coming from previous successes, than maybe an outsider could be the best way to go. If the reason for the bad results has to do with re-alignment of resources than maybe an "insider" could get the job done in a better way (the signal to the other employees would be one that says: "we appreciate you all and we think you can pull it off without any external help".
 

 
Turnaround Manager... Insider or Outsider?
Abbas
I believe that sometimes employees are so tired of old stuff work that they need inspiration to motivate themselves ( as this principle is widely used in Football). I would go for an outsider with a good reputation.
 

 
Outsider is Necessary
Jagdish B Acharya, Consultant, India, Premium Member
When the situation has gone to a level that demands turnaround, it is only an outsider who can help. He has no stake in past, can be considered unbiased, can really change and can be seen as a savior.
The solution will however come from insider's knowledge and outsider's understanding and analysis. Insiders may know the solution but may not force it, due to some limitations from top and hence a suave and articulate outsider can get that solution out of insiders and present it in form by which it brings turnaround.
 

 
Insider or an Outsider as a Turnaround Manager?
Daniels, MBA Student, United Kingdom, Member
Very good question. The answer is fully embedded in the causes and symptoms of decline. If the management team is capable then perhaps only a new CEO and CFO need to steer the ship. However, this is not to say existing CEO and CFO's have not rescued companies before albeit they are the exception rather than the rule.
 

 
Insider or Outsider - Does it Matter?
Amey Bhide
Does it really matter who the turnaround agent is as long as the turnaround strategy is correctly defined and effectively implemented?
Probable reasons why an "outsider" is preferred could be insiders have lost faith in themselves, they start doubting the credibility of their colleagues in effectively running the organization. They know it is because of the "insiders" that the organization is facing the turnaround situation.
Hence the natural reaction is to seek outside help because as rightly pointed out, outsiders have no stakes and are unbiased.
Attitude matters - outsiders look at the situation as a "challenge" (positive approach) whereas most of the time insiders think they are in a "crisis" (negative approach).
If "insiders" can maintain a positive attitude, I don't think there is a need for any external agency (except under extreme scenarios). Advices from 'outsiders' can surely be sought.
 

 
Turnaround Management by In- or Outsider
Julio Furtado, Consultant, Angola, Member
Both are necessary but to start off the process it is better to use an outsider because he or she will be more objective and focused to the process besides bringing more experience.
As for the insiders, they would be usuful to give inputs and to implement the strategies and make them feel part of the process.
Insiders can always almost trouble any turnaround initiative if they are not given a share in the process. But letting insiders drive the turnaround initiatives by themselves can be risky endeavor. Insiders have always their own agendas.
 

 
Insider or an Outsider as a Turnaround Manager?
Tom Lesnikowski, Business Consultant, Australia, Member
An often asked question! An impartial outsider who can create and execute the turnaround plan is a critical appointment.\
To achieve this, a powerful guiding coalition to lead the change and work as a team is a one of the foundations of any turnaround. It is important whether internal or external that this group work as a team.
 

     
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