The business environment today is becoming more challenging than ever with a market place that is volatile and unpredictable. No longer can a business sustain itself with management being satisfied with the status quo.
I advise CEO’s to look at the ever changing environment, the competition both nationally and internationally, and to also seek out their customer base on how the service/product base can be improved to continually add value to their business..
You may be achieving acceptable results today, however, you should be looking at ‘Turnaround’ strategies which include rapid and accurate assessments of short, medium and long term survivability to combat increasing marketplace demands.
There are early warning signs of potential business decline leading to probable distress:
- Declining margins
- Declining market share
- Increasing debt
- Declining working capital
- High staff (including management) turnover
In looking at strategic turnaround strategies you will focus on the direction of the business with the objective to mobilise the operations in support of your business plan/budget including the ongoing and positive support from all key stakeholders.
- Identify and reverse causes of operational non performance and distress
- Identify and resolve financial weaknesses
- Review all costs and initiate a cost reduction/avoidance programme
- Initiate a change management programme
- Run a company wide SWOT/TW analysis and determine how people see things and can contribute to sustainable improvements
- Initiate an asset reduction strategy
- Establish a contribution analysis of all products and processes
In essence, I have found that a decline or stagnation in operational performance comes down to some very basic and fixable areas.
- Core activities
- Marketplace intelligence
- Cash flow
- Customer service
- Performance measurement
It is amazing how these basic areas of management fly under the radar?
I have been privileged to have assisted many diverse companies reinvent themselves and recover from under-performing to acceptable levels of best practice performance covering liquidity, solvency, profitability and positive cash flow.