An Interim Management Experience - Business Turnaround

Overview
In its generic sense it usually means the rescue of companies in trouble, almost at the point of no return.
But why should companies wait so long before the call in expert help?

Unfortunately many companies delay calling for help for the following reasons …
· Cost. It’s too expensive
· Belief that “we can turn it around”. We don’t need help.
· The true situation is not known.
· The delusion that we have been in business many years, we cannot lose out now.
· Now there are many more reasons as well…

The reality is that if expert assistance were called in before the decline became Terminal the cost saved could vastly outweigh the cost of the service.

A Difficult Assignment
Too many companies in trouble should take external advice earlier in the process, but only tend to do so at the last hour, when they have really no alternative.
In one company I assisted,
· Finance Director had gone off with stress
· Financial Controller had been sacked, for poor performance.
· The business faced a plunging cash balance
The MD wanted to know what the “heck” was going on. After suspending all possible payments, I hastily established a team and set about finding the problems and a solution. This resulted in me informing the main board of directors that within two months the company was likely go bust without drastic action. Not nice to do but it had to be done! But I was also able to tell them I had experienced worse situations and still achieved a result; to give them confidence that there was a way out.
The way forward
There was a successful way out with a recovery plan and I was able to lead them to it.  As a team we worked together to produce a result, by imposing the necessary controls and triggers; educating staff as to what was required of them; but the real satisfaction came from seeing everyone working hard as a team and the company gradually move away from "the brink"


The Unexpected  
In this business the one thing to expect is the unexpected. You never know what is going to happen to companies in an unstable position. Inevitably these problems always present themselves through a lack of cash which immediately impacts on not paying suppliers or extending credit on essential supplies...resulting in the "domino effect" of issues all around the business.

Seeing the Light
This is the most rewarding part of the job, rescuing the company from the edge. The fascination is that everyone wants the company turnaround to work, to see management and staff responding so willingly to a recovery plan where they can at last see what needs to be done to put it right. Even for some to offer to work for less pay to help the process!… that brings a lump into the throat!

Philip Wilson