Do you recogise the symptons that may give rise to a business turnaround in your organisation?

There are distinct symptoms that a business will experience prior to a business turnaround being actioned.  They may not all be recognized immediately, however, they may well be accepted at a later date.

Some examples are:

1. The Downward Creep
Often a continual decline in the business fortunes may be experienced.  The decline may be excused as general market conditions and accepted as part of normal trading risks.

Whilst this may be manageable in the short term if a pattern emerges of small annual reductions in the finances of the business then the threat signs are missed and speedy corrective action is not taken. 

There will be a danger of failure and a business turnaround should be actioned.

2. Crisis Management
No strategy, no medium or long term operational planning with a focus on solving immediate concerns only.  This approach may be ‘the norm' within the business but is it sustainable?

Probably not.

The cost of waste within all processes will escalate, the service to customers will deteriorate and finances will suffer.  Customers may resource products or services away from the business and the business decline may merge into the Downward Creep phase and become indistinguishable.

It will be important to identify the causes of the ‘crisis management' and to take corrective turnaround action prior to possible failure.

3. Lack of Business Control
The business may have a healthy sales order book but the business struggles due to poor management controls within the company.

This may manifest itself in high stocks, high receivables and poor cash flow which may require a radical change in strategy and the injection of additional funding.

Expert help in the management of the business turnaround will probably be required.

4. One off event
An event outside the control of the business may take place that is so significant that the business may need to re-focus or re-invent itself.

The cancellation of a large contract, the largest customer going out of business, political actions are examples of such events and may trigger a business turnaround programme.

If your organisation requires additional skills to turnaround the business contact DAW Consulting for expert impartial advice.