During a recent meeting with a prospective client I was asked how I would approach a turnaround situation for a possible engagement. Although we often hear the phrase “turnaround management”, owning and running a business on the decline can be overwhelming. Creating and implementing a turnaround strategy and plan by following a systematic approach will often lead to a successful execution and profitable recovery.
Turnaround management is “a process dedicated to corporate renewal”. It uses analysis and strategy to give business owners and management the guidance to revitalize distressed companies and return them to solvency. When analysis is completed, a long-term strategic and restructuring plan is created. Once approved by ownership/management, turnaround interim managers begin to implement the plan, continually reviewing its progress and making changes to the plan as needed.
In Western Europe, Turnaround Managers are also called Turnaround Practitioners and often are interim managers who only stay as long as it takes to achieve the turnaround. Assignments can take anywhere from three to 24 months, or longer depending on the size of the organization and the complexity of the job. The Globe and Mail recently reported on the “seasoned executive with a parachute”; interim management has gradually become accepted in North America as the changing economic climate has surpassed the concept of long-term job security. Senior executives can be parachuted into temporary roles without a long learning curve due to the wealth of experience accumulated.
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