- An appeal to learn from past crisis, competitors and the best After the attacks of September 11, 2001, airlines got into serious trouble and were forced to cut costs and routes all over the world quickly. Some airlines in the US that did not have enough financial resources went into Chapter 11 protection in [...]
1. How long, on the average, does a turnaround take (possibly broken down into decline stemming and recovery)? That can vary a lot. At Detecon, they schedule 4 to 10 months for a restructuring project. However, careful consideration must be given to the exact situation of the specific company. It is very rarely possible for [...]
Experienced management is one of the most important factors behind the success of any business. Many managers have ample enthusiasm and energy, but often lack the knowledge and experience needed to sidestep easily avoided mistakes. As a result, far too many companies get into trouble and can die before ever reaching their potential market value. [...]
The Turnaround Management Society (TMS) has finished it’s most ambitious project to develop a standard for turnaround management practitioners. The project was set for three years and lead by Christoph Lymbersky director and lead project manager of the Turnaround Management Society.
Turnarounds are a very common situation that statically 30% of the listed companies on the NYSE run into within ten years. The research led by Christoph Lymbersky of turnaround cases suggests that a lot turnarounds are done in house by the companies themselves, few have professional turnaround help.
Emergency/Crisis Management Planning needs vary with the industry, type of operations, and regulatory applicability; however, the following guidelines can be used for any situation: WHAT ARE YOUR HAZARDS? The first step is to Identify vulnerabilities and hazards associated with your operation. No one understands your operation better than you. Ensure that emergency, business continuity, and [...]
Contrary to common belief, a company is not an inanimate object. In fact, there are many similarities between companies and people, companies are living organisms that comprise communities of people that contribute to their distinctive personalities and attitudes. Like us, companies fall sick, due to various reasons such as economic slowdown, competition and incompetent management.
However, there are workable, preventive, diagnostic and therapeutic steps to treat and restore the health of sick companies. Similar to how we manage our health, a company needs to follow three key steps…
Company Voluntary Arrangements (CVAs) were introduced to be a flexible business rescue procedure. They are meant to provide a flexible way of restructuring a troubled business which will lead to a better outcome for creditors than liquidation and allow the existing shareholders to retain ownership and control of the business during the process. This article [...]
Achieving a successful turnaround often requires both specialist help and new cash. As turnaround management consulting has become more of a profession there are an increasing number of sources of help and advice for businesses in difficulty. This article introduces the main types of professionals involved in business turnaround and in particular how they can [...]
Once your company starts doing well, it is easy to relax your standards and return to your previous mistakes. A successful business turnaround plan depends on consistency and persistence. You must keep maintain your focus on efficiency, creditor prioritizations, and cash flow rather than returning to basic sales. Think Long-Term Business turnaround plans may have [...]
Business turnaround is about reversing a business’s decline, restoring it to stability and then re-growing its value. But business turnarounds are about healing the sick, not attempting to raise the dead, and so this article looks at the seven key factors that need to be in place and the key stages in the process. So, [...]