Crisis? - The Immediate first 6 things to do (plus 1 longer term) – Turnaround Quick Hit
1. Mandate: The first step in a business turnaround is to clearly define the mandate of what the company is trying to accomplish. This mandate should be concise and provide a roadmap for the entire turnaround process. The mandate should take into consideration the company's strengths, weaknesses, opportunities, and threats, as well as its overall mission and goals. This step is crucial because it sets the foundation for the rest of the turnaround process and helps ensure that everyone is working towards the same objective.
2. Centralized Control: The next step is to centralize control by giving decision-making power to a single person or body. This helps to ensure that all decisions are made in a timely and consistent manner, which is critical in a time-sensitive situation. By centralizing control, the company can avoid confusion, delays, and conflicting decisions that could further harm the business.
3. Cash Management/Control: A critical component of a business turnaround is to manage and control cash flow. This requires a single person or body to be in charge of all cash decisions, such as payments, disbursements, and investments. By implementing tight controls over cash flow, the company can ensure that it has the resources it needs to survive and carry out the turnaround plan.
4. Stop Gap Moves: In a business turnaround, it's important to take emergency actions to buy early time. This may include reducing expenses, negotiating with suppliers and creditors, or implementing temporary cost-saving measures. These "stop-gap" moves help to buy time for the company to implement more comprehensive solutions and can help to prevent further deterioration of the company's financial situation.
5. Relevancy Assessment: The next step is to assess the company's offerings against the market demands. This includes analyzing the company's product portfolio, marketing strategies, and customer satisfaction, to determine how well aligned the company is with the market. This assessment also helps to identify any changes that need to be made to the company's offerings to better meet the market demands.
6. Stabilize: The next step is to implement actions for stability and to buy time. This may include cost-cutting measures, operational improvements, or financial restructuring. The goal is to stabilize the company's financial and operational performance and to prevent further deterioration.
7. Long-Term Plans: The final step in a business turnaround is to develop a long-term strategy. This involves creating a comprehensive plan that outlines the company's vision, mission, and goals. The plan should also include specific actions and initiatives to achieve those goals, as well as a timeline and budget. The long-term plan should take into consideration the results of the relevancy assessment and the actions taken to stabilize the company and should provide a roadmap for future growth and success.