The purpose of this paper is to improve understanding of the company turnaround process. Three Australian firms engaged in the heavy engineering industry undergoing the transition from organisational decline to recovery were studied in depth in a period of significant change for the industry. The turnaround performance of these firms was compared with that of a less successful rival. Effective turnaround management involved making a series of holistic changes to strategies, structures and practices throughout the organisations. The concept of the “self-calibrating” organisation is developed which provides new insights into the turnaround process and which challenges conventional prescriptions for company revival in a mature industry.