Business Turnaround
The business turnaround methodology is similar to that employed for a performance improvement programme. The fundamental difference is that time is of the essence, cash is heavily constrained and stakeholders require close involvement.
Given these constraints our checklist for a business turnaround is as follows:-
- Take control of cash by closely monitoring/controlling all cash movements.
- Asses the viability of the business. Can it be saved as a stand alone business?
- Prepare a short term business plan identifying key issues to be resolved i.e. customers, operations, supply chain, structure, profitability etc.
- Gain stakeholder approval i.e. board, shareholders, bank, creditors (if approapriiate)
- Agree roles and responsibilities
- Be bold with early cost reductions and downsizing activities.
- Communicate openly, honestly and regularly with the staff. Its important to gain their trust and buyin to the changes.
- Implement plan and closely monitor performance
- Keep key stakeholders fully involved with progress