Turnaround Management

Times of corporate distress present special strategic management challenges. Turnaround consultants should be brought into the company to devise and execute a plan of corporate renewal, assuming that the firm has enough potential to make it worth saving. The earlier this is done the better.

At Sapio Associates we have found that all too often the turnaround consultant is not brought in early enough. That is why we offer a free and no obligation assessment of the company before any full project is proposed or undertaken.

Before a viable turnaround strategy can be formulated, the root cause or causes of the crisis must be identified, sticking plasters will not address the cause and will therefore not offer long term survival possibilities.

Frequently encountered causes can include:

• Sales downturn caused by a weak economy or lost customers.
• Overly optimistic sales projections.
• Poor strategic choices.
• Poor execution of a good strategy.
• High operating costs.
• High fixed costs that decrease flexibility.

and many more. Could any of these be affecting your business?

While each case is unique, the turnaround process frequently involves the following stages:

• Review the company viability.
• Fully analyse the situation and rout causes.
• Indentify immediate actions to be taken, such as immediate and drastic cost cutting, Cashflow improvement, etc.
• Review debt and financing options and restructure as required.
• Undertake operational change management including process optimisation.
• Develop new structures and long term process change to ensure the root cause is solved.
• Knowledge transfer from Sapio Associates to the company to ensure long term survival.

If you feel any of the above my apply to your business even if you are not sure, please contact us on 01709 539912.