How to Lead if You Inherit a Bad Situation 

By Michael Watkins

As businesses navigate market disruptions, technological innovations and an increasingly turbulent world, leaders will frequently find themselves taking control of a team in the aftermath of a crisis. Inheriting such a challenging environment often means facing frustrated employees, expectant customers, and senior teams all crying out for rapid improvement.  

But the process is not as clear-cut as simply making changes and heading off into the sunset. Succeeding as a turnaround leader requires a different mindset and approach compared to typical management styles. It demands a balance of decisiveness and conscientiousness, underpinned by strategic thinking abilities. Without these, leaders can find themselves creating a worse situation than the one they originally entered.  

Here are some basic principles to help you thrive if you find yourself in this situation as a new manager.  

Get crystal clear on what went wrong  

Rigorously assessing the previous scenario and its mistakes is an important first step in developing a strategy and preventing further crises. Structured problem-solving plays a key role here, as it ensures that decisions and diagnoses are based on a thorough understanding of the problem, not just on gut feelings or superficial assessments. 

Start by clearly identifying the main issues at play, breaking the situation into manageable parts to discover the root causes. Drive your analysis using frameworks like stakeholder analysis, SWOT assessments and scenario planning. Likewise, develop criteria for evaluating potential solutions, ensuring they align with your organisation’s strategic goals. 

Other strategic thinking skills like mental agility are also beneficial here. Learning how to think flexibly and adapt to changing circumstances helps you pivot quickly when faced with unexpected challenges. To cultivate this skill, practice brainstorming and lateral thinking techniques. Playing logic-based games can also be an easy way to introduce this way of thinking into your daily routines.  

Sell your vision for change 

The team you’ve inherited will also feel the weight of the situation and may have lost trust in management’s ability to fix it. As a leader, it’s your job to win them back onside. Doing so requires an inspiring, shared vision outlining how you will get out – and stay out – of trouble.  

Effective visions provide stakeholders with an understanding of how an organisation will appear once it has achieved its mission, considering its priorities and strategies. However, simply imagining this idealised future is not sufficient; you must rally people behind it. This requires leaders who can bridge the gap between ambitions and the current reality within the organisation and promote the process. 

Practice your storytelling with trusted colleagues, trialling how you’ll present your vision persuasively to different audiences. Pick out key elements that will appeal to certain groups. Alongside your communications, let your actions do the talking. Allocating the right people and holding them accountable for achieving the various targets and stages of your vision shows that you are serious about making improvements. 

Prioritise transparency 

After a crisis, there will be trade-offs and hard choices to make. Hiding from these will make it worse for everyone involved. To gain support and momentum, prioritise transparency when discussing the situation with your team.  

Acknowledge the impact that any changes may have on priorities and workload going forward, explaining the rationale behind the decisions you’re making and how this could affect their day-to-day work. Ensure you regularly check in with those affected to address their concerns, provide updates, and manage expectations. Answer the questions that are being asked instead of the ones you want to speak on. But remember, your message should be consistent with the vision you’re working to achieve.  

Taking the time to recognise your team and celebrate every win can also be a great way to build and sustain momentum.  

Be politically savvy 

In a turnaround, you must be adept at building the best connections to drive your strategic agenda forward. By cultivating political savvy – the ability to influence others and capitalise on the power dynamics at play in any organisation – you can build alliances, negotiate and navigate conflicts more effectively. 

Begin by identifying the stakeholders you need to mobilise behind your vision and who recognise the need for change. Learn about their internal power structures, interests, and motivations. In doing so, you can avoid strategic missteps and internal resistance. 

Leaders are often time-poor so having a strong coalition of supporters to spread your message can be far more effective than simply relying on one person’s voice. Learn who best to lean on for certain initiatives and leverage these relationships to drive your objectives and vision forward.  

By implementing these strategies, you can maximise efficiency as a leader while supporting your remaining team members through these challenging times.

About the Author

Michael Watkins is a professor of leadership at the IMD Business School, co-founder of Genesis Advisers, and a bestselling business author of books including The Six Disciplines of Strategic Thinking and The First 90 Days.