Create a culture and structure that will withstand third-party accountability to add value to the business. Start thinking as a rebuilt and growing company and prepare for a potential future life as a public company or increased scrutiny of investors. What should you expect during the turnaround? The process goes through five stages: changing management focus (leadership), analysing the situation and developing plans (viability), emergency action (crisis control), restructuring business (change), and return to normality (going concern). It is key to coordinate the functions and focus of the company to complement each other. Can you detail the key steps that are involved when turnaround services are required? You need clear thinking to quickly determine what is wrong, develop strategies that no one else has tried before, and implement plans to restructure the company. The problems are rarely obvious. Instead, there are often two or three underlying systemic ills that must be fixed. You can’t focus on the symptoms but must find the real causes. There is a process for guiding an entity through corporate renewal. It involves using a transferable set of skills to revitalise the property and restore it to a sale-worthy state. Then, you sell the entity and realise returns. Bring Leadership. Change Management Focus In times of crisis and transition, who can handle the crisis management role? This is a predicament. If there is a qualified leader within the company, then delegate the job of ‘turnaround’ Bank i ng & F i nanc i a l Se r v i ce s 42 Finance Monthly. Action/Skill Independent Perspective, Unbiased Advice Strategic Thinking & Planning Experience & Objectivity, New Knowledge Turnaround Expertise Contacts, Networks Capital Infusion Transactions Benefit Challenge Management, Sounding Board for CEO, Objective, Mediate Conflicts Turnaround Management, New Directions, Transitions, Incentive-Based Compensation Been There, Done That, Oversee Performance & Risk, Accountability, Credibility, Interim Management Investors, Lenders, Resources, Partners, Customers, Suppliers Raise Money, Restructure, Guide Offering Process, Finders of Capital Prepare Company for Sale, Locate Interested Parties, Negotiate a Deal Benefits of Outside Directors
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