Corporate turnaround!!! How to structure?

Recently one of my relatives got admitted into a Hospital. He was having a very high fever and unable to move himself on his own and subsequently lost consciousness. It was an Emergency medical condition. However, the medical team did a great job of timely identification of the cause, treated it with quality and enabled him to recover to normalcy at a very short time. Learning from the experience, he is now planning to start his fitness routine. This was a typical example of a turnaround story where the person was terminally sick, got treated and revived back to normalcy and working towards further betterment.

Similarly any corporate having challenges to survive can work its way through the formation of a critical team, timely identification of cause(s), formulating action plans, effective implementation with monitoring of milestones for further course corrections if necessary, reclaim normalcy and achieve further growth.

We shall classify the above into five steps for easy reference. First and Foremost is the formulation of the team of people who shall be tasked to execute the turnaround process. Here, care shall be taken to ensure the team includes relevant skill sets pertaining to the company/business involved, the experience of being part of a past turnaround team is a must. We shall entrust formulating a business plan to an executive having knowledge about the business and has been in a senior management role before. Executive(s) who was part of the team that led to the current crisis shall not be included at any cost.

Secondly, we shall identify the causes that led to the current situation both internal and external to work out the corrective action plans as necessary. Where the exercise leads to a change in company/business model, same to be completely evaluated. Coming to the third step, an effective corrective action plan with measurable outcomes and milestones to be prepared. The key is putting up the plan with measurable outcomes and corrective actions with timeline in case of deviation from milestones.

To complement the actions taken as above and fourthly, an effective monitoring mechanism shall be inbuilt for checking the actual performance against the agreed milestones and initiating corrective actions wherever necessary. Monitoring shall include review of all the metrics by professional team outside of an organization to have an Independent perspective. The Professional team shall be answerable only to the Critical team formed for executing the turnaround. Monitoring and strategizing is always part of turnaround. The agility with which decisions can be taken and tested and pivoted will determine the speed of the turnaround.

Efficient executions of four steps will lead us back to Normalcy. The Critical team shall continue to oversee the business for agreed time during normalcy and manage a smooth transition to the new team. Finally the fifth step to formulate growth strategies where the experience gained during challenging times and turnaround phase would be used to make it a sustainable one.

Few Prominent Examples of Corporate Turnaround:

  1. General Motors Inc., USA.
  2. Fiat Automobiles, SPA, Italy.
  3. Spice Jet India
  4. Apple, Ca
  5. Thermax India
  6. Star India

 

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