Start at demand, not capability
Most turnaround plans start in the middle of the problem. Start with demand instead: is there demand you aren't serving, and where? Then delivery. Then capability and cost.
Where most plans start
They start with the org chart. The process map. The capability assessment. Does the engine run.
The engine isn't the question. The question is whether there's demand you aren't serving, and where.
If there's no pent-up demand, you can have the Ferrari of engines in the middle. Who's going to care?
Why does demand come before delivery?
If there is pent-up demand and you can't deliver against it, you already know what's broken. You don't go to market asking for more business until that's fixed.
Why do plans run it backwards?
Because capability is where the org chart is, and the org chart is what a board can see. That's why eighteen months later the number hasn't moved.
Short answers
What order should a portfolio company turnaround follow?
Demand, then delivery, then capability and cost. First find demand the company is not serving. Then fix whatever stops it delivering against that demand. Only then rebuild capability and take out cost.
Why do most value creation plans start with capability?
Because capability is where the org chart is, and the org chart is what a board can see. It is visible, so it gets fixed first, even when it is not what is holding the number back.