Abstract:
All organisations will face some form of decline in their existence. The sooner a
decline is acted upon, the better chance for a successful turnaround. Cognition of a
decline is the first phase within the turnaround literature to activate turnaround action.
The study explores top management teams (TMTs) cognition of decline during the
decline and attempting turnaround.
The underpinning theory is based on the turnaround literature, with this study
focussing on the first phase, cognition of the decline. Management cognition is key
for an organisation to notice its current position and act upon it if not on the desired
trajectory. Understanding the metrics that can indicate the decline will assist TMTs
in taking note of the decline and acting early.
The study deployed an exploratory qualitative approach. Twelve semi-structured
interviews with internal and external stakeholders of the TMTs were conducted to
bring forward an indication of financial and non-financial metrics that TMTs can utilise
to indicate a possible decline. The study provided a base for future studies on
attributes of the TMT that positively impact turnaround implementation. Only a few of
the study's conclusions can be extended to lower levels of the organisation and
outside of South Africa because it is focused explicitly on TMTs in that country.
