Turnarounds
When declining revenue, poor cash flow, low productivity, and other ailments threaten the viability of an organization, it may not be possible for the existing management team to turn it around. They may be too close to the problem to remain objective. Some may cling to pet projects or other ideas that aren’t working anymore.
They may actually be the problem.
Easy Turnarounds are Challenging
…and some turnarounds are, sadly, ill-advised.
We have been involved with numerous turnarounds, and they are as varied as they are complex. Turnarounds are very challenging assignments, because everyone knows that organizational upheaval is at hand. It brings out the best and the worst in people. Emotions always run high as fear, uncertainty, and doubt set in. Vision, decisiveness, toughness, and emotional distance is required to succeed. If a turnaround is possible, we bring the required skills and experience that are needed.
Turnarounds, however, are not always possible.
Experience is a great teacher. In the case of TLG Innovation, we have enough experience with turnarounds to know when a business is so sick that it isn’t worth the cost and effort. In some of these situations, it’s important to consider other options, such as divestiture, packaging business units for sale, or ceasing operations and reallocating personnel to other business units.
TLG can assist you to determine whether a turnaround is the best approach for your given situation. If it is, an Interim Executive assignment is typically the best approach to effect rapid and lasting change. In some cases, we work with CEO’s in a Consulting capacity to provide an objective view, and to accomplish extensive alternatives analysis quickly.
Moving Forward with a Turnaround
We move swiftly to identify “low hanging fruit” for improvements, and create a very clear understanding that change is coming, and it will be positive. We analyze the performance of each department and employee, and determine the nature of systemic problems that will require organizational changes.
In turnaround efforts, it is vital that employees, suppliers, shareholders, and other stakeholders understand the exact nature of the changes and what to expect. Downsizing and consolidation efforts bring fear, and fear is the enemy. Positive, results-oriented progress reporting builds trust, hope, and a common vision. As momentum builds, the positive employees will come on board quickly, and build even more momentum.
Once the team is engaged in the new direction for the business and clearly supports doing what it takes to succeed, there is often a great deal of business process re-engineering that must take place to fix broken processes in sales, marketing, operations, and IT. This may involve capital investment, and added strain on existing employees to meet the day-to-day needs while building for the future.
Leading the Way
Each turnaround is unique, but most of them require a consistent focus on certain areas. For instance, revenue generation is a critical component of any turnaround effort. Without adequate cash flow, good intentions and hard work may bring disappointing results.
Business transformation, by whatever name, is sometimes required. These situations require innovative and decisive action to reposition the organization and move to a more viable position.
Leading the charge toward a high performance organization requires a rare blend of visionary and strategic skills coupled with strong execution capabilities. TLG possesses the experience and expertise required to initiate the turnaround. More, through our professional and recruiter network we are in a position to supplement your team to fill a leadership vacancy, then identify candidates that are typically needed to revitalize a struggling organization.
Rebuilding Brand
In some cases where an organization has failed to meet customer expectations for a prolonged period, it may be necessary to rebuild the brand. We bring a leading-edge approach to brand building that drives a high degree of customer loyalty, differentiation in the market, and improved profitability.
We Help You Build the Ideal Organization
Without an appropriate and high-functioning management team, turnaround efforts are wasted on an ineffective culture. We help you to first assess your team, identify strengths and weaknesses, and implement appropriate changes. When the right organization is in place, and the strategy has been set, our clients are well on their way to reaping improved profitability, greater customer satisfaction, happier employees, and a renewed drive for achievement.
Serving Seattle, Bellevue, Kirkland, Renton, Redmond, Issaquah, Kent, Auburn, Bothell, Mountlake Terrace, Lynnwood, Edmonds, Woodinville, Everett, Tacoma, Puyallup, Sumner, Fife, Olympia, and Bremerton.
