Turnaround management

Turnaround management as a science

Turnaround management flow chart

View the turnaround management flow chart diagram of Morris Anderson & Associates.

 

In our view, the science of turnaround management is based on:

  • Rapid and accurate assessment of the turnaround situation, short-term survivability and longer-term turnaround viability.
  • Appropriate formulation of turnaround strategy in terms of strategic repositioning, reorganisation, revitalised leadership, increased revenue, decreased costs and decreased capital employed.
  • A thorough understanding of how to manage a turnaround as it progresses through the natural turnaround stages - situation assessment, emergency management, restructuring, and recovery.
  • The rigorous application of a best practice turnaround plan to manage, stabilise, fund and fix the distressed company in strategic, organisational and operational terms.

As a turnaround management consulting firm we use state-of-the-art tools and methodologies to assess turnaround situations, to devise turnaround strategy, and to manage execution of the turnaround plan in a rapid and efficient manner. 

Our approach to turnaround management has been honed through practical application over many years. 

In our pursuit of remaining at the cutting edge and to establish best practice in turnaround management, we continually research developments in turnaround practice, and study lessons learnt from turnarounds around the world.

Turnaround management as an art

While the science of turnaround management is necessary, it is not sufficient.  Although taking place within a scientific framework, turnaround management remains an art.

The art of turnaround management is vested in insight and judgemental gained through experience. 

The stakes in turnaround management are big.  The turnaround situation has many dimensions.  The time pressure can be immense.  Many stakeholders are involved.  Angry creditors, frightened employees, wary customers and a nervous board of directors all require equitable treatment.  Prudent choices must be made. 

No amount of schooling, study and theory can replace the judgment calls made by seasoned turnaround practitioners who has been through the grindstone before.  

Turnaround management is not for the faint-hearted.

Turnaround experience and past turnaround projects will tell you more about our turnaround consulting experience and typical examples of turnaround consulting projects completed.

Turnarounds are tough (Neil Harvey)

  • In a turnaround, a different type of leadership style is required compared to stable business situations.
  • Management will be under more pressure because the turnaround has to be executed in addition to "normal" ongoing management.
  • Required turnaround actions are usually more severe because of actions not taken in the past - management has to play catchup.
  • Faster decisions and actions are generally required because of the critical situations prevailing.
  • There is generally less margin for error in a turnaround, but also higher consequences of error.
  • The turnaround situation will usually be worse than thought.

Our turnaround consulting services

If your business is in underperforming or in distress, our turnaround consulting section provides detailed information about how we may be of assistance to you. 

Turnaround management sections

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CRS Turnaround has mastered both the science and the art of turnaround management.