Business Restructuring and Turnarounds – What You Need to Know

It is inevitable that a small to medium size business will falter in the execution of its business strategy at some point during the lifetime of the business which will have an impact on employees, customers, and other stakeholders, and may necessitate the need for business restructuring and turnarounds.

Therefore, when that time arrives, it is important to identify the factors that will assist the CEO and management team in a restructuring event, and or turnaround, and ask several questions to identify its organizational fitness.

Business Restructuring and Turnaround Questions to Ask

Where Are We Now?

  • Situational Analysis
  • Diagnostic Organizational Fitness Health Evaluation

Where Do We Want to Be?

  • Strategic Direction
  • Objectives

How Will We Get There?

  • Strategies
  • Programs

Who Must Do What?

  • Delegated Objectives
  • Action Plans

How Are We Doing?

  • Business Review
  • Key Performance Indicators Operational {leading}
  • Financial Review {lagging indicators}

While these questions are essential, it is vital that the leadership team also focus on:

  • The well-being and mental health of their employees.
  • Pay attention to the input of customers who have a stake in the health of the company.
  • Streamline processes, practices and systems.
  • Create a high sense of urgency; we can turn this business around.
  • Develop a relentless focus on “Cracks in the table”; where are the cash leakages?
  • The focus on cash is extremely important and business assumptions about the inflow and outflow of cash must be managed in a disciplined manner.

Receiving Outside Assistance

After answering these questions and take assessment of the business situation, the CEO, business owner, and the Board of Directors may discover that the current management team needs external assistance in developing the turnaround plan; it is not a sign of weakness to ask for assistance from a qualified professional. We turn to fitness gurus for our physical health, we ask our ministers for spiritual health and we see counselors for our mental health. During this turbulent time, management has to ask, “Are we paying sufficient attention to our organizational fitness health” and “Do we have the capabilities to fix the ailing business”?

In addition to stringent cash controls, the turnaround team must focus on accounts receivable {cash inflow and days outstanding}, accounts payable {cash outflow days behind} and debt payments. Too much debt will sink a company in short order and too much cash allocated to payments deprives “oxygen” from product development, capital expenditures and other key areas of the business.

How Parker Revenue Growth Strategies Can Assist Your Company

Parker Revenue Growth Strategies revenue growth and turnaround capabilities assists companies that are facing significant financial, operational, financial deterioration and business trends. We work to course correct the direction of the business with an assembled team of trusted advisors who work to improve competitive advantage in the marketplace.

Our industry knowledge and functional core competencies enables the turnaround team to address critical issues quickly and with great dispatch so business stabilization occurs in a short period of time.

Working hand in hand with the management team, we craft an “Organizational Fitness” review that leads to strategic, operational and financial plans that govern and guide the company through the business difficulties and spot those opportunities that will increase revenue and ultimately profits for the business.

Finally, the lessons learned from the restructuring and business turnaround should be applied on a regular basis; cash controls, streamlined decision making and processes, a focus on accounts receivable and accounts payable and performing as a market leader, not a market follower.

If you are a CEO or business owner who has identified a need to develop a turnaround plan for your company and are feeling overwhelmed, there is a solution! Our interim management, revenue growth plans, and turnaround strategies can turnaround your company for maximum return on investment because we are an outcome driven company to maximize value and operating results. Don’t wait another day – Contact us at Parker Revenue Growth Strategies today for a complimentary business assessment and start your company’s path to long-term success!  (858) 232-7273

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