There is a particular kind of strain that enters a business before it becomes visible on the balance sheet. A few departures that should not have happened. A once-reliable customer who starts asking sharper questions. A leadership team that spends more time reacting than leading.

It is in that space, between “things feel harder” and “we are in trouble”, that turnaround has become increasingly relevant. Not as a last-minute rescue, but as a disciplined way to regain control while there are still options.

To understand how this shift is playing out in practice, we spoke with Milly Camley, CEO of The Institute for Turnaround (IFT). The conversation explores how the market is evolving, why UK businesses still wait too long, and what leadership teams should be paying attention to before options begin to narrow.

Turnaround Is Moving Earlier in the Decline Curve

Milly is clear that the traditional image of turnaround is outdated.

Fifteen to twenty years ago, the focus was largely on cash crises and financial restructuring. That work still matters, particularly when liquidity tightens, but it is no longer the full picture.

Today, turnaround is being applied much earlier, “further up the decline curve”, where the objective is not survival, but restoring competitiveness and operational performance before a company is forced into action.

This reflects a broader shift in the operating environment. Businesses are now dealing with multiple pressures at once: technological disruption, cost volatility, tighter capital, and changing customer expectations. In that context, turnaround becomes less about rescue and more about structured decision-making under pressure.

A Shift Toward Hands-On, Blended Expertise

This evolution has changed what companies expect from turnaround professionals.

Milly points to a growing demand for individuals who work alongside management teams, rather than remaining purely advisory. The emphasis is on a blended skill set, combining operational and financial capability, with a clear expectation of being hands-on.

There is also a shift in who initiates turnaround engagement. Where lenders once dominated, the sponsor base has broadened. Business owners, private equity firms, and advisory firms are increasingly bringing in professionals who can step directly into executive roles with accountability.

She also notes a dynamic more familiar in the US: lawyers increasingly acting as brokers of turnaround expertise, helping boards access the right capability at the right time.

“Adapt. Transform. Succeed.” as a Leadership Framework

The IFT’s strapline — Adapt. Transform. Succeed. — reflects how Milly views turnaround in practice.

It is not a reactive discipline. It is a structured approach to finding and rebuilding value through change that lasts. The focus is on creating conditions where a company can remain in control and continue to perform.

She connects this directly to productivity. While the UK has a strong start-up ecosystem, long-term economic performance depends on established businesses being able to adapt and improve continuously, particularly in volatile conditions.

The Scale of Impact, and the Growing Demand

The IFT’s 2024–25 Societal Impact Report provides a clear sense of the scale at which turnaround operates.

Its members have collectively:

• safeguarded over 59,000 jobs
• increased shareholder value by £2.8 billion
• secured more than £2.1 billion in new funding to support turnarounds

At the same time, distress is rising across sectors, with real estate and energy seeing particularly sharp increases. Against that backdrop, 76% of IFT members expect turnaround demand to grow further in the coming year.

Recognising the Early Warning Signs

When asked what leaders should watch for, Milly moves beyond purely financial indicators.

A lack of profitability is often the first signal, but it rarely appears in isolation. It is usually accompanied by subtle but compounding changes, such as increased competitive pressure, reduced ability to respond to shocks, or the gradual loss of key staff and customers.

What matters is visibility.

Maintaining a rolling 13-week cashflow, supported by strong management information, allows leadership teams to see pressure building early and act before options begin to close.

Why UK Businesses Still Wait Too Long

Despite clearer tools and earlier signals, many businesses still delay action.

Milly describes this as a “curiously British attitude”. In some cases, it is avoidance. In others, incomplete information. Often, it is cultural.

Leaders hesitate because they do not want to disappoint stakeholders or funders. In family-owned businesses, the emotional connection can make decisions even harder.

The data supports this. A large majority of practitioners cite cultural and psychological resistance as a major barrier to accessing turnaround support, and many businesses only recognise the scale of the issue when it is already too late.

Her position is direct. Turnaround should not be treated as a last resort. It should be part of normal governance to assess performance, resilience, and risk, and to seek support when needed.

When to Act, and What “Good” Looks Like

On timing, Milly is clear. A cash crisis is an obvious trigger, but waiting until that point limits options significantly.

The stronger approach is to act earlier, when there is still room to shape outcomes.

When selecting a turnaround professional, she highlights the importance of:

• proven track record and accreditation
• clarity on mandate and expected outcomes
• alignment with the specific situation, rather than only sector background

Her recommendation is to prioritise situational experience, especially when the environment is complex and time is limited.

A Broader Toolkit for Modern Turnaround

Turnaround today is supported by a more flexible legal and operational toolkit.

Milly highlights the Part 26A restructuring plan as an example of how frameworks have evolved. It allows companies to restructure liabilities while remaining solvent, keeping directors in control and creating space for operational change.

Used effectively, tools like this extend the runway for action and allow restructuring to happen in a more controlled environment.

Technology Supports, but Leadership Delivers

On technology and AI, Milly takes a balanced view.

These tools can improve efficiency and support productivity, particularly in invest-to-save initiatives. But they do not replace the core work of turnaround.

That work remains fundamentally human.

It requires leadership capable of creating clarity in uncertainty, aligning stakeholders, and building a shared direction. As she puts it, the ability to create “one version of the truth” is essential.

Her emphasis is clear: communication is central, both internally and across all stakeholders.

The Hidden Constraint: Management Fatigue

Looking ahead, Milly points to an issue that is becoming increasingly visible: management fatigue.

After years of sustained disruption, many leadership teams are stretched. Energy, focus, and bandwidth are under pressure, precisely when decisive action is required.

External support in these moments does more than bring expertise. It restores capacity and momentum at a critical time.

Final Advice to CEOs

Milly’s closing message is simple and direct:

Take control of the situation before it takes control of you.

Leaders who bring in external expertise early often find the process more constructive and empowering than expected.

At Valtus UK, this is where experienced interim leaders play a critical role — stabilising the situation, creating clarity, and executing change at pace across CEO, CRO, CFO, and COO mandates.