If a business has been underperforming for a number of years, or if it is in financial distress, turnaround management may be the best approach. A turnaround manager or interim CEO can take the company through a restructuring process leading to solvency.
In distressed companies, management has often been at the helm for years, not sure how to fix the business. Despite many different attempts, success has remained elusive. Although the owners are dedicated to turning the business around, they’re out of ideas of what to do.
In these situations, a turnaround manager can be the alternative. Someone with experience, a fresh perspective and who is not held back by a ‘Not Invented Here’ attitude. Someone who can quickly assess the situation, make the tough decisions necessary to turn the business around, and implement solutions.
Causes of Poor Business Performance
A company’s lack of performance is usually the result of a multitude of factors. Rarely is it just one aspect of the business that’s misfiring. Many factors can contribute to a company’s lack of performance such as:
- Sales decline
- Poor management decisions
- Weak execution
- Lack of a sound business strategy
- High costs
- Poor inventory management
- Lack of management skills
- Personnel issues
- Insufficient resources
- Lack of new products
- Outdated technology
- Weak competitive position
- Excessive debt
- Weak accounting practices
- Low profits
- Poor pricing strategies
- Focus on the wrong markets
- Over (or under) diversification
Turnaround Management Process
Although each company in a turnaround situation is unique in its own way, the typical turnaround process involves
a number of stages. Click on the topics below to learn more.
If your business can benefit from the fresh perspective of a turnaround manager or interim CEO, contact us to start a conversation about the options.