“No matter how far you go in the wrong direction, there is always a chance to turn around”
There is always that time when a company needs some help. Turnaround management is the process of reviving a company that is struggling. Whether the company is facing financial problems, or is just struggling to keep up with competition, there may come a time when the company needs to put a turnaround management plan in place.
In effect, turnaround management is very similar to the strategic planning process; however the first step of identifying areas of stress in the business is critical. For any business where this stress is already occurring, applying the above process, in consultation with a turnaround management expert, will not only ensure the business turnaround but also the opportunity to improve and develop well into the future.
When do I need to prepare a turnaround plan?
If your company is suffering from any of the following symptoms then a turnaround plan is needed.
- If your company is having a declining market share;
- If income statement shows a continuous loss;
- If financial results are marking declining readings consistently;
- In case of having a general deteriorating performance measures of any aspect;
- If turnover is rolling down on a negative trend;
- In case of facing resilient problems that consumed numerous trials of in vain resolutions.
How can you help me? What makes you different?
“We believe that quality means delivering more than what was expected”
This is our approach in conducting the turnaround plans:
- Define & Analyze: During this stage the definition of performance problems within the business are clearly outlined. It is particularly important during this step that any areas of financial stress within the business are identified and a thorough analysis undertaken.
- The objective of this is to arrest any further decline in the business while continuing to trade and avoid insolvency.
- Scope & Strategy: Once the business has been stabilized, it is now time to commence a strategic planning process. The first part of this is to scope the strengths, weaknesses, opportunities and threats “SWOT Analysis” of the business. From the SWOT analysis, the long term vision, mission and objectives for the business can be defined. Knowing where the business is heading allows the development of a strategic plan.
- Link & Action: Now it is time to take the strategic plan and develop an action plan. This is a list of actions and tasks with time frame that must be undertaken to ultimately achieve the business objectives. The tasks are the daily, weekly and monthly activities to be done and with this strategic planning process, each one will be contributing to the overall mission.
- Implement: This step is not just about implementing the action plan, but also ensuring coaching and support of all staff. Without this critical step, all the planning can go in vain. It is important that employees are aware of the overall vision of the business. This is achieved through communication, consultation and coaching on a regular basis.
- Review: With all the planning and implementation in place, it is now time to conduct regular reviews. This ensures not only that continual improvement is achieved but also helps to identify any corrective actions that may be needed.