Tactics and Strategy to Survive and Grow
Strategy and tactics are different. First we work out the strategic direction and set realistic goals with you. Then we think out the tactics to ensure the route we chose has the highest chance of success.
Plotting a 'survival' or 'growth' strategy may be pretty obvious but still needs to be worked through and tactics agreed before taking actions that might be hard to undo.
Then as soon as practical and when the business is safe, a longer term strategic plan to navigate the turnaround journey must be developed. It will include our waypoints positions where we can measure success and review plans for the next leg.
The plan will also include your ultimate exit goal; it may seem way over the horizon but it's essential to know where we're heading.
In turnaround we are generally talking about managing a financial crisis, rescuing the business and maintaining control of the company assets. We have experienced a lot of industries and crisis situations so we're already equipped to manage the situation.
Crisis management is the difference between responding and reacting in crisis situations, and can make the difference between surviving it and succumbing to it.
The early stages of the turnaround process is certainly going to change the business. It also challenges the previous business model; is it valid for the restructured company?
The ideal time to rethink the business is when it's been stabilised around a smaller profitable core. When the value chain is analysed we will find changes are necessary to the business. Redefining the business model leads into a strategic plan for the future.
Throughout our 5 leg turnaround journey we'll be developing and reviewing a strategic plan for the business. We must understand the internal and external environmental factors that affect the business. Then we can make better strategic choices.
An up to date written plan is essential to engage the support of creditors, lenders and employees. It doesn't need to be fancy, just credible and do-able. As we advance to the latter stages, where we might be seeking acquisitions, new funding or partners, then something more substantial is can be developed.
Restructuring is core to the business turnaround process. Just rescuing and stabilising the business started the restructure.
To effect a sustainable change many facets of the business must change in harmony; the organisational structure, business systems, strategies, its style, the staff and their skills. The culture must also move to support ongoing profitability.
A budget is the financial map. Without a budget we have nothing to measure against. To achieve a successful turnaround the organisation must set an achievable budget and stick to it.
Initially we will be planning for profitable sales and matching the cost structure to it. Where possible fixed costs will be converted to variable.
Once stable and when the new plan is in place budgets get reworked to reflect any restructuring and investments for growth.
The strategy and tactics we apply changes as the business advances along the turnaround journey. As we implement the overall turnaround plan we guide management to progressively build a revitalised business that can capitalise new opportunities that appear on its horizon.