Much of our experience has been focused on under performing organizations. The reasons for the under performance are varied and generally unimportant. What is important is to identify the situation, ascertain the solutions, then implement them. Normally the turn around situation requires break neck speed to implement the fix, generally with less than ideal resources at hand.
In most situations we have found two constraints which needs to addressed immediately. Generally you are running time and money. These factors need to be honestly and forthrightly addressed up front in the turn around plan. Every action put forward to "right the ship" needs to consider these.
There are always alternatives.
Depending on the situation, but almost always, our first focus is cash. Companies can lose money for quite some time, but they can not operate without cash. A liquidity analysis will be prepared, cash flow analyzed and results will guide further actions. Most companies have an understanding of their liquidity, we will endeavor to provide or, likely more critical, views.
Short term action plans will then be developed, agreement of all will be attained, and accountability for timing and results rigorously monitored. It would be typical to have short daily meetings on the progress. During this implementation period we generally see a need to act with significant authority, approvals on actions need to happen instantaneously. Decisions are taken more as a benevolent dictator than in a corporate environment. Controls need to be in place, of course, but timing to reach decisions needs to have "all hands available" to move fast.
Mid term plans, 3 to 6 month objectives will then be formulated. This is only after we have averted any short term crisis. We would typically depart after these mid term plans start to show merit, say less than 12 months.
Finally, should the situation warrant an in court restructuring, generally a Chapter 11 Restructuring under the US Bankruptcy Code, we can assist. We have been through the process as the CFO, CEO and adviser many times. We believe, without sounding self serving, that good advisers during an in court restructuring is absolutely critical. The law is complex, often counter intuitive, and decisions need quick, and often immediate action. The company's dependence on a trusted adviser for help will never be more important. We believe we are very qualified to be that trusted adviser.
Shamrock Advisory, LLC
Jim Connor or Rick Brown