Turn Around – Step By Step!
Distress signals start flying around when a particular company, whether multinational, corporate or medium sized, is placed under financial pressure and is at the brink of bankruptcy. What was happening all along? No body knows and nobody wants to be held responsible. The CEO has to bear the brunt and alas, extermination!
The overall aim of a turn around strategy is to bring back a firm to normalcy which has been under distress in terms of permissible levels of profitability,solvency,liquidity and cash flow.Turn around strategies should be very carefully formulated so as to stabilise the firm in distress,that is to bring the company out of the hole and then go for long term planning.Turn around can be in the form of operational efficiency management,financial restructuring,marketing management or savings in the form of cost reduction or liquidity in the form of asset reduction.
We have seen so many such occurrences at the global level and micro level. Some companies rejuvenate like a phoenix bird from the ashes, some go haywire, some dissolve into thin air. It all depends how well you manager the situation with either the help of an external expert consultant or you might want to go fora joint venture or collaboration in order to save you skin from mounting interest payments or you right royally sell the company if somebody is ready to takeover.Either way you have to do something! “Turn around to see what is around”.
- Dont see what you want to see
- See what has to be seen
- Change the Ceo (He is the Ideal Victim!)
- Resurrect your employees’ confidence
- Cut down costs
- Look for Alternatives
- Lie low for Sometime(till the situation favors)
- Slowly capture the market by inventive Campaigns and ads
- Paint a new picture about your company
- Review your Mission and Vision statements
- Work on targets
- Bang on the right target customers and clients
- Strengthen your Channel of Distributors
- Go smooth with the bankers(You need them always!)
- Have confidence in yourself
- Crisis management is necessary
- Stress busters like yoga and meditation mandatory
- Evolve Strategies
- One step at a time (Slow and steady)
Fear and Panic grips the organization in situations of crisis. So the first step would be to stay cool to estimate the situation by calmly reviewing the damage with all the concerned people. The next step would be to stop the bleeding by cutting all unwanted costs, unnecessary overheads, and the final stage would be renaissance,recovery,renewal or by at any rate name you want to call it, already if it method negative investment or profit.
Proper Planning, Inventory Control, Strategic prepositions, Renewal of old strategies in accordance with the situation, Tightening finance controls, Defining the credit management limits, all these are precautionary measures which will keep up you from falling into the danger of handling a crisis situation, as” recovery of damaged integrity is going to cost you more than ploughing back your profits. “