Great turnarounds start with an uncomfortable truth.
EXPERT OPINION BY PETER ECONOMY, THE LEADERSHIP GUY @BIZZWRITER
When Bob Wright took over as CEO of Wendy’s in May, he quickly realized that the company he inherited had some big problems.
U.S. same-restaurant sales fell seven percent in the second quarter. Wendy’s had been pushed out of its position as the nation’s second-largest burger chain by archrival Burger King. The company also experienced six consecutive quarters of negative same-store sales.
But instead of simply pretending everything was fine — “Nothing to see here” — Wright did something refreshing: He admitted Wendy’s had made mistakes.
We have made some decisions around quality
“We have made some decisions around quality that were rooted in efficiency and cost savings,” Wright told The Wall Street Journal. He also acknowledged that Wendy’s had allowed its value proposition to erode.
Refreshed leadership advice from CEO Stephanie Mehta
An Inc.com Featured Presentation
There’s a lesson here for every leader. When your business is struggling, explaining your problems away rarely fixes them. Facing them might.
Here are five things you should do when your business gets off track.
1. Admit what isn’t working.
Leaders sometimes believe admitting mistakes makes them look weak. In my experience, the opposite is usually true. Your employees probably already know where the problems are. Your customers may know, too.
Source: www.inc.com
