Forging a Path to Recovery: The Transformative Role of Communication for Turnaround Success

I’m currently in turnaround discussions with a major retailer and the key stakeholder, the property owner. One of the criticisms from the property owner has been the lack of communication by the tenant.

First, there were the initial discussions on a new lease because the current lease had expired.  The new terms and conditions were agreed. It was agreed the new lease had been executed between the parties.

The agreed new lease has remained unsigned for four months.  In the meantime, the old expired lease terms are being applied.

Rent is three months behind.  There has been absolutely no communication from the tenant on how he intends to manage these arrears.  

Crisis of confidence and the role of communication

So, now we have a crisis of confidence between the property owner and the tenant. 

Now the tenant lacks credibility.  Credibility is, saying what you mean and meaning what you say or walk the talk.

As the time has progressed and the arrears on the current rent have not been paid, the lack of confidence and credibility has transitioned to a lack of trust.

Credibility forms in the logical part of our brains, trust forms in the emotional part, and as we know, emotion is stronger than logic.

So, if we agree to a plan on a turnaround, how do we know that the tenant is going to stick with the plan, asks the property owner? 

And there it is.  

A question covering the lot – lack of confidence, credibility and trust.

Building stakeholder relationships through effective communication

Communication or maintaining communication, regardless how painful, allows you to maintain confidence, credibility and trust with your stakeholders.

Communication, confidence, creditability, and trust is the single biggest asset that you have.