How to proceed
You naturally ask yourself – Where do I go from Here?
Most businesses have found themselves in trouble because of growth for which management has
The most important steps to move forward on the road to recovery through the strategic business review and strategic business plan process is:
- Produce up to date financial and non-financial information that clearly demonstrate where
the issues lie. This supports a plan that will identify critical and immediate changes that must be made
- Work out the most profitable areas of the business and dedicate your attention to building
up the high-value adding activities.
- Stick to your core business activities and capabilities and keep doing the things that generate positive cash flow – Don’t experiment with new ideas during this critical period
- Business turnaround strategies require total staff, clients and suppliers support. They must
feel an integral part of the strategy. This can often be difficult because staff usually detect a downturn in company fortunes. Develop a clear and achievable strategy by sharing achievable a qualitative objectives which are understandable and believable.
When companies get into trouble many don’t strategise quickly enough. This requires a new dynamic approach which is best serviced by an independent business expert.
In these moments of crisis it is best to seek outside expertise who has led by example and made
things happen through personal experience and success.
It is important for the key stakeholders of the business to see added leadership skills which
translate into keeping morale high and the team’s effort focussed on the great tasks ahead.
Communication is a critical success factor in this entire process.
To determine how your company should move forward through a structured time apart from the normal flow of business based on thorough analysis of the current operational position and available options for developing sustainable growth and profit
Red Global Solutions would suggest that you undertake a ‘Turnaround’ commitment which incorporates:
- Business Strategic Review
- Strategic Business Plan
Business Strategic Review
To determine how you as a client should move forward through a structured time apart from the normal flow of business based on thorough analysis of the current operational position and available options for developing sustainable growth and profit.
After an in-depth and independent due-diligence review of the business, RGS utilises a four (4) stage process involving all key stakeholders where a clear consensus is established for the way forward.
Where is business now?
This stage involves analysing company strengths and weaknesses, how well it addresses the needs of buyers and markets, including how it compares with market competition.
An assessment of operational effectiveness will be undertaken specifically addressing people, processes, procedures and organisational responsibilities.
A full and comprehensive review of financial budgeting, reporting, and management will also be an integral part of the initial review process.
By utilising internal resources, this process will build consensus about what needs to be done, by whom, and by when. It answers the questions about why?
Where could the business go?
The second stage identifies strategic options for consideration whilst addressing research and analysis of sizing, profiling and segmentation of markets with opportunities for development of current and new products and services through organic growth, acquisitions and/or strategic partnerships
Where should the business go?
Based on the in-depth analysis of the first two (2) stages, a selection of appropriate objectives can be made from the strategic options that are available.
This will include the selection and prioritisation of the initiatives that will be required and those responsible for managing them.
There will also be a deeper benchmarking assessment of the market opportunities in order to complete this stage effectively
How will the business get there?
In the final stage, a Strategic Business Plan will be developed based on the differentiated value proposition that has been identified in the first three (3) stages.
The growth through each potential current or new market segment is defined. Targets, position descriptions, budgets, and all operational control aspects which underpin growth will be included and will be the measures used to evaluate success.
The Business Strategic Review will culminate in the main findings of the diagnostic process and set out firm proposals for transformation of the business.
Based on the above, there will be a consensus by all key stakeholders in support of the case for change and the development of a detailed Strategic Business Plan for implementing the growth and profit projections.
What are the first steps?
Stabilise the cash flow and set up daily/weekly KPI’s and measures
Diagnose the business problems, review the organisation and culture
Prepare an action list of priorities accepted by all key stakeholders.