At some point in time, every company reaches a critical point where difficult decisions have to be taken to either save the business or to close it down permanently. During a significant decline in business performance, the most valuable asset a company has is TIME. The illustration here shows the necessary actions required as a company’s financial situation deteriorates from left to right.
The quicker vital changes are made, the greater the chance of success. In contrast, the longer a company waits to make necessary changes, the more drastic the required actions and the less likely it will survive.
On the other hand, dramatic improvements can be made by choosing the proper strategy and refocusing the company on what’s most important for their business. While others are trying to keep pace with the industry, we prefer to change the rules and innovate to let your competitors do the chasing.
Many can see this as a scary proposition, however we prefer to look at it as a tremendous opportunity to transform the business into what it should have been all along.
When we are managing crises, we are at home in our natural environment. We thrive in challenging conditions and find that the biggest opportunities for not only managing the crisis, but for sustainable long term growth are in plain site.
During times of financial distress, TIME becomes a precious resource that must not be wasted. If measure are taken quickly, the company can be turned around and saved. Unfortunately many underestimate the severity of the situation, react too late, pass the point of no return and the company eventually goes out of business.
When we take on a turnaround assignment, our goal is not just to turn the company around but to establish long term growth that will eventually make the company stronger than ever.