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Turnaround process

Turnarounds are no longer special cases but an all-too-familiar part of ordinary business life 

 


 

[*] A Turnaround process involves bringing leadership, strategy setting, building a quality management team, acquiring new business/sales, establishing sound capital structure, implementing processes and nurturing resources.

 

Distressed company leadership is about value preservation, recovery, communicating with multiple stakeholders, rebuilding, saving jobs and leading in adversity.

 

Many causes contribute to business failure. According to a study conducted by the Association of Insolvency and Restructuring Advisors, only 9% of failures are due to influences beyond management’s control and to sheer bad luck. The remaining 91% of failures are related to influences that management could control, and 52% are rooted in internally generated problems that management didn’t control.

 

Businesses fail because of mis-management.

 

Sometimes it is denial, sometimes negligence, but it always results in loss. Mismanagement is most often seen in more than one of multiple areas:

 

• Autocratic management and overextension.

• Ineffective, non-existent communications.

• High turnover and neglect of human resources.

• Inefficient compensation and incentive programs.

• Company goals not achieved or understood.

• Deteriorating business and lack of new customers.

• Inadequate analysis of markets and strategies.

• Lack of timely, accurate financial information.

• History of failed expansion plans.

• Uncontrolled or mismanaged growth.

 

[*] insights by John M.Collard

Firm Turnaround & Biz Plan Outlook

Turnaround Road Map