Link Management Group - Top 10 Issues

Top 10 Issues - Business Turnaround

An article on one of these issues wil be published in this section regulary.

1. Creating a snapshot of the problem areas A two/three day review of the business will identify the common and obvious cause of your problem areas

2. Cash is King Don’t let anyone else tell you differently. Large companies go under with full order books. Getting and maintaining a tight control of cash outgoings is almost as important as step 1 above.

3. Getting support from lenders It is just amazing the number of companies we work with who do not keep their lenders up to date with their trading position. They do not want to see you fail – it’s a black mark for them too. If they know where you stand and they are involved in your recovery plan they will generally stand by you.

4. Trading environment Occasionally the general trading environment can affect your business. What are you doing about this? Have you adopted any innovative approaches in your market place?

5. People Your staff is a major asset in the business. Sadly, they are often ignored but have a very strong vested interest in the business succeeding. How do you involve them?

6. Structure and processes When did you last look at your structure and main processes? Are there opportunities to drive cost out of the business?

7. Creating a Recovery Plan Looking at resources, funding shortages, tight timescale, you need a plan for recovery that involves all the key players inside and outside your business.

8. Creating a Performance Culture Performing to the revised plan will impose stress and pressure on everyone. However the pain is an essential part of bringing the business back from the brink. This means you will need to carry the people with you. How do you do this whilst working in a tough environment?

9. Commitment from the top You are either running a stand alone business or a subsidiary of a larger group. It is essential that there is full support from the very top for every phase of the recovery. Nothing can be more demoralising to staff working under pressure if they do not have the full support of the main board.

10. Communication – internal and external There are many vested interests in this recovery working. Not just staff and colleagues, but suppliers, customers and professional advisors. Make sure everyone is in the picture all of the time. At least 80% of the problems we help resolve were caused by poor communication.