What is Turnaround?
The decline or collapse of companies is a feature of the market economy. If an underperforming business seeks help, and they are returned to being a sustainable, viable organisation rather than being left to insolvency – that is Turnaround.
Our members play a critical role in supporting businesses experiencing stress and delivering the best possible outcomes.
They work across the span of a company’s business stages, using turnaround, transformation and business improvement skills to keep companies adapting, transforming, and succeeding.
Here are the stages of a turnaround that you can expect when working with an accredited turnaround expert.
Diagnose the problem
This involves the urgent, high-level analysis of the problems faced by the business to determine whether there is a pathway to rehabilitation.
Build Stakeholder
Confidence and Support
It is vital to get everyone on board with the plan, including shareholders, lenders, investors, suppliers, employees and customers.
Stabilise the finances
For this stage, the goal is cash generation. That means getting cash flowing into the business, reducing debt, extending credit, reducing inventory, and cutting costs.
Rehabilitation
In this stage, it’s time to fix the finances and restructure any financing, cost base and cost controls. It can also include refreshing leadership skills and finally, developing a strategic vision and a turnaround plan.
Articulate a strategy
for growth
Now we set our eyes on the future, and develop a sustainable business strategy for future growth.
