Making Space for the Human: emotional intelligence on the turnaround journey

On the face of it, emotionally intelligent interaction with the people within the business may seem like a nice-to-have when its whole capital structure is at stake. Against a global backdrop of polycrisis – from geopolitical shifts to technological disruptions–  it is perhaps not surprising that some turnaround operators view human connection as unhelpful, even obstructive, to the process of making tough decisions within tight time and credit constraints.

However, our experience at BM&Tis that emotional intelligence is far from incompatible with a timely, decisive and effective response. In fact, we have found the opposite to be true. Reading and speaking to the needs of a business on a human level in turnaround is an underrated strategic asset, and an integral part of a successful outcome in the longer term.

When a business is in distress, pre-existing organisational issues come to the fore. The company is an ecosystem operating in survival mode, and on a human level this manifests in familiar defensive behaviours such as blame, mistrust, fear-based decision-making, and fixed negative mindsets. It would be tempting to tune this out as noise that interferes with the task at hand.

But what happens when we ‘read the room’ on more than a surface level? A turnaround professional who understands the emotional signals within an organisation – as well as the balance sheet – is more aware of the cultural barriers to consensus, progress and stake holder confidence, and better able to stabilise internal dynamics for the long term. It makes sense for us to use emotional intelligence to inform decisions made for the optimal operation of a business.

So how do we make space for emotional awareness and communication in the turnaround journey, and what does this look like in practice?

The power of listening

Making time to listen to all stakeholders – not just those with the loudest voices – is a vital investment, and starting early in the turnaround process saves time further down the line.Listening carefully to how people are experiencing the business in flux gives us clues about potential liabilities that could otherwise go unnoticed, such as informal power structures, conflicting interests and organisational and operational blind spots. More positively, listening helps us to identify latent staff competencies, encourage collaboration, and build trust. The simple act of listening is a powerful tool in itself. Allowing people to voice their feelings can clear the way for more focused, considered decisions and actions. Whether in dedicated sessions or more informal conversations, our professionals know the value of listening with respect and authenticity.

Authentic connection

For a positive turnaround outcome, trust between stakeholders – and in the turnaround process itself – needs to be established swiftly and sustainably. Today’s most successful turnaround professionals are able to achieve this through connection.

Honest, direct communication, being visible, availability to answer questions, even if the answer is ‘I don’t know yet’ – these are all seemingly simple attributes, signifiers of respect and humility that in times of insecurity might fall through the cracks. But it is precisely at such times that they are most beneficial.

During the COVID-19 pandemic, our CEOAnton de Leeuw stepped in to chair a hockey club in crisis. At a time of unprecedented financial hardship, illness and loss of life, it soon became clear that the role of Chair was about more than finance. The club’s 400 members, plus families, businesses and banks were seeking answers at a time of great distress. Anton’s approach was to show up, keep listening and keep communicating. By admitting uncertainty, being present and connecting authentically, he was able to guide the club through adversity to emerge stronger.

The way a message is given and received is often just as important as the message itself. In his excellent‘Superhero Leadership’ podcast, in conversation with leading turnaround lawyer Joanne Rumley, Peter Cuneo stresses the importance of ‘constant, regular, open communication’, going as far as to say, ‘I actually think that human beings would rather hear bad news than no news.’[1]

Authentic communication demonstrates integrity. Integrity fosters trust. This means fewer barriers to honest conversations between stakeholders, saving valuable time. It means that rebuilding trust with funders and valuers is easier and more likely. Ultimately, it means the difference between dragging a business along with our vision and bringing them with us, as part of a motivated team committed to a successful outcome.

Walking in their shoes

What does true empathy mean, and is it really possible, or even helpful, in high-stakes turnaround situations? AtBM&T we believe the answer is yes – with one important caveat: that empathy must be genuine, embedded in the approach of the turnaround professional from the outset.

Inhabiting another person’s viewpoint, ‘walking in their shoes’, is a fundamental part of human connection. When empathy is deployed as a tick-box exercise, the lack of sincerity is very easy to detect, leading to an erosion of trust. But engaging with real empathy from the outset brings many benefits. Our professionals draw on their own lived experiences of business adversity when walking with clients through difficult times. Our CEO remembers in 2008 having the bank funding pulled from the global business he founded: ‘The news was given to me over the phone at a train station by the commercial manager from the bank. I’ve been in the shoes of owners and boardrooms myself. The dark thoughts, the strain on health and relationships. I understand how that feels.’

Genuine empathy provides insight into people’s motivations, informing communication styles and effective negotiations. In partnership with our own emotional honesty, it can form a two-way bond of trust that encourages collaboration. And even where corporate decisions lead to unavoidable human consequences such as wage reductions or redundancies, the sense that those decisions have been made with a greater degree of understanding of their emotional impact can help those affected to rebuild.

Intervention in the acute phase of distress is only the beginning of the recovery process.Even when turnaround is achieved, a sustainable foundation gives the best chance of a business surviving and thriving into the future. In the polycrisis era, this means equipping it with the fitness and resilience needed to meet the next challenge. As temporary guardians, our turnaround professionals have the privilege of being embedded within the business, and the opportunity to view its workings with a fresh eye and from an outsider’s perspective. Engaging our emotional intelligence allows us to work with leadership to build long-lasting organisational change, leaving the business ecosystem in a healthier, more sustainable state than when we joined it. Securing financial capital is key to turning an organisation around. Securing human capital gives it the best chance of long-term survival.

[1] Peter Cuneo, ‘Superhero Leadership’ podcast, Episode 6: From Chaos to Clarity and the Art of Turnaround Leadership, with guest Joanne Rumley (July 2025)

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