Turnarounds

Economic and financial recession is already changing ordinary rules which were acceptable in a stable market economy life. Declining demand, difficulties to predict customer behavior, need for reducing prices, restricted bank loan policy and on the other hand constantly growing energy and labor costs might turn some companies into a troubled situation.

The long termed strategy is suddenly not realistic because of fast and unpredicted problems appearing. This is and will be the case for a large amount of companies. But the ones who find its way out of the problems will be among the successful companies, when the global economy has recovered. It is therefore important not just to give up.

Special tools and management methods are required in such situations and 1.Q consult and its specialists have extended knowledge in how to turn companies around.

Every day nothing is being done, the problem grows bigger and the focus therefore has to be on:

• getting a fast, clear and realistic picture of the present situation in the company and the main reasons for the appeared problems
• making a rescue plan, where the turnaround team gets the mandate to make the needed decisions
• divide the company activities in to profit/cost centers and immediately stop all activities which is loss giving unless they with simple changes can be made profitable
• working on finding all possible places to cut cost in the organization
• finding ways how to improve the cash flow here and now
• removing all loss giving clients unless they accept significant price increases
• focusing on few important key performance indicators and use them actively in the day to day planning
• working parallel with a plan for the next steps, when the turnaround phase is over, what is the vision, what key employees to involve and how to change some of the management systems

Please us the following link to read the full presentation about Turnarounds