Turnaround – Sparring during turbulence
If your company for one reason or another, is facing turbulent times – perhaps the financial situation is stressing the overall cashflow, customer demand is stagnant or you are using more capital than is available.
Once we have analyzed what the problem exactly is, we have the information needed to make important decisions and can implement countermeasures. From there on the the real action starts.
The trick is to do this while your business is still operating !
As a starting point, my experience is that you cannot just implement cost savings and expect that to save the situation – you need to have a 360 degree view of the company and the situation on hand.
A cost saving exercise is only one of many elements of a turnaround. Other elements could be:
- A revised market strategy
- Re-adjust and adapt the organization – revise the control span internally, perhaps a need for new recruitment, maybe job cuts.
- Get a firmer grip on cash flow.
Often – when in a crisis it is tempting to look for a quick fix – a parachute. But my experience is that it is necessary to to obtain a more holistic view to enable a long term approach to the situation