TMCnet News
What's the Secret to Turnaround Success? These Seven Nordic Companies Have the AnswersBOSTON, Feb. 26, 2018 (GLOBE NEWSWIRE) -- Companies in search of successful turnarounds might want to look north—to one of the world’s most competitive business regions—for answers. Seven Nordic firms—operating in a region where large-cap companies have vastly outperformed their global peers—reveal the three key ingredients needed for sustained breakthrough performance in a turnaround, according to The Nordic Comeback Kids: Turnaround Stars and Their Stories, a report from The Boston Consulting Group (BCG) being released today. The companies include such well-known names as Nokia and Danske Bank. Their lessons should be of urgent interest to business leaders in the US and around the world who operate in highly disruptive markets and need to know how to turn a company around. At any point, about a third of large US companies experience a severe, two-year decline in their ability to create shareholder value, and about a third of those companies fail to recover the loss in value within the following five years. Most companies need to transform at least once during any five-year window, according to BCG research. Large-cap Nordic companies in the top quartile of performance achieved an impressive average total shareholder return (TSR) of 41% during the five-year period ending in December 2016. That’s nearly double the 21.4% median TSR achieved by their Nordic peers, and it’s nearly four times the 10.8% median TSR of the S&P Global 1200 for the period. “These remarkable results have powerful implications for any companies that are currently struggling to grow their revenues or sustain profitability,” says Mikko Nieminen, a BCG partner and coauthor of the report. Three Steps to Sustainable Success The seven companies represent a cross-section of industries, including financial services, industrial products, beverages, and paper and packaging; many are household names globally. Th companies took various steps, but all of their transformations had three elements in common. After quickly recognizing signs of decline, leaders acted decisively, focusing first on funding the journey through quick wins. Once their organizations were stabilized, the leaders strategically repositioned them for growth. Finally, they honed the agenda for lasting performance. “This approach has had winning results among hundreds of companies throughout industry sectors and across the globe. We believe it is the only path to sustainable performance,” says Jesper Damm, a BCG partner and coauthor of the report. Big Performance Gains, Big Prospects for Future Growth Among the companies featured are these four:
Nordic Comeback Kids follows BCG’s November 2017 report The Comeback Kids: Lessons from Successful Turnarounds, which profiles turnarounds from throughout the globe. The Nordic edition is also the first regional report in the Comeback Kids series. A copy of the report can be downloaded at http://on.bcg.com/2FpFB1A. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or [email protected]. About The Boston Consulting Group |