There are many reasons why an organization may require turnaround assistance. Rarely is it due to a single factor. A business may find itself in need of assistance based on internal or external factors or a combination.
Regardless of the reason, companies that are in need of a turnaround may exhibit one or more of the following –
-Revenue increases year-over-year are anemic due to continual price pressure in a mature industry;
-Cash management and business management practices are lax and inefficient;
-Employment and administrative expenses are increasing;
-Strategy is outdated and incorrect for the current market;
-Customer satisfaction and employee satisfaction are low; and/or,
-Marketing efforts are not organized and occur sporadically, i.e. the volume of new business, only serves to replace terminating relationships.
It is very easy to let these situations continue. Years later you stop and look at the business and discover things are inefficient and costly. In response you try several tactics to address the issue, but instead of correcting the situation, you make it worse.
An Accounting colleague once advised that often times he is asked to look at an established business to help them correct a low profitability issue. He reflected on the fact that, “Most of the time when a business comes to me for help, it is already too late.” You need to understand when a problem exists.
A successful business turnaround is a commitment to critically look at your organization and implement business practices that have historically been the most effective at managing a business, i.e. best practices.
The below list represents individual articles that fall under the category of TurnaroundTips. Simply left-click the topic listed to link to the posting.
How the Situation May Occur
To address an underperforming company, initiate a redesign. The method to redesign a business is the implementation of standard business management “best practices.” I have found that small and medium-sized businesses incorporate some “best practices,” but not all.
However each large Fortune 100 company I worked with incorporated every one of the concepts. These are proven methods of success, to help improve the probability of your success.
How do Some Companies React
In February 2014, I published a book that looks at this issue. This manuscript provides insight into when situations arise where a business turnaround is required; techniques (best practices) to employ to ensure your business is operating efficiently; and the proper approach to redesign.
The following link will allow you to read chapter one of the manuscript Redesign to Turnaround Underperforming Small and Medium-Sized Business
So far reviews have been positive – Redesign to Turnaround Reviews 09.16.2014
To order your copy, click