In the world of business turnarounds, the key to success lies in maintaining control of the venture. This is a crucial lesson that can be learned from the struggles at companies like Under Armour and Hertz, as well as the dramatic success story of Apple under the leadership of Steve Jobs. Kevin Plank, the founder of Under Armour, is back as CEO after firing Stephanie Linnartz, and has seen sales rebound from a low of $4.5 billion in 2020 to $5.9 billion in 2023. Similarly, Hertz has faced turmoil with a failed CEO and a disastrous bet on electric vehicles, which was actually authorized by a previous CEO and led to the replacement of the current CEO.
The lesson from both Under Armour and Hertz is clear – in order to successfully lead a turnaround, it is essential to have control over the business. This can increase the chances of staying in the job long enough to see success, as opposed to being prematurely fired without cause. This lesson is exemplified by the turnaround at Apple under Steve Jobs, who staged a boardroom coup to regain control of the company in 1997. Jobs went on to launch a series of successful products, including the iMac, iPod, iPhone, and iPad, leading to Apple’s resurgence as a tech giant.
Maintaining control of the venture is crucial for entrepreneurs, as losing control can significantly decrease the chances of success. Among 85 billion-dollar entrepreneurs, only 6% succeeded after losing control, while 94% stayed in control. To keep control, entrepreneurs should delay or avoid venture capital funding, as the top VCs often seek to grab control and replace the entrepreneur. Keeping control is the single biggest mistake that entrepreneurs can make, and learning from the successes and failures of other entrepreneurs can help in navigating the challenges of growing a business.
Overall, the key takeaway from the stories of Under Armour, Hertz, and Apple is the importance of control in business turnarounds. By maintaining control of the venture, entrepreneurs and business leaders can increase their chances of success and avoid the pitfalls that come with losing control. Learning from the experiences of successful leaders like Steve Jobs can provide valuable insights into the strategies and tactics that can lead to a successful turnaround. Ultimately, control is key in navigating the complexities of the business world and achieving long-term growth and success.
