Saving a Business in Trouble - Business Turnaround Leadership and Strategy

As a business and turn around consultant with overalongside the business consultant to instill trust,
twenty years experience working with numerousintegrity and openness to the turn around process. If
small and medium size companies, businessthe CEO does not hold a position of high esteem
turnaround services are some of the favorite work Iwith the employees throughout the organization, it is
perform. I enjoy the challenge and helping a troubledtime for him or her to go and be replaced by either a
company to succeed again. Unfortunately, sometimesCEO who specializes in turnaround situations or
the business owner comes to me too late, and thepromote someone from within that has this
turnaround strategy turns into a cutting lossesrelationship with the company's people and can adjust
strategy, often ending in bankruptcy, restructuring,quickly to being an effective CEO. With this trust and
liquidation or a forced fire sale (quick sale). The bestintegrity established, it is time to get to work.
advice I can give business owners is to hire anSteps I take as a turnaround consultant include: learn
experienced business consultant immediately, noabout the business; meet with advisors, creditors,
matter the stage of company growth, economiccustomers and suppliers; evaluate the problems and
situation or company health situation. A businessissues; identify the most pressing and significant
consultant can proactively help head off futureproblems; identify opportunities; analysis; resource
disaster, help to grow the business and provideaudit; risk assessment; develop the turnaround
essential strategic direction. A good businesssolutions and the resulting business strategy; acquire
consultant can help a business develop and implementand leverage needed resources; deploy with
an effective business plan so that turnaroundconfidence; and obtain and distribute value.
services are never needed.If you follow a similar process and have strong
The important parts of turnaround strategyleadership qualities and skills, then, more often than
development and deployment are leadership,not, the turnaround plan will be successful. However,
experience and expertise. The success of ait isn't always so; sometimes it is too little, too late,
turnaround plan rests with the people on thedepending on the activity and stage of the dire
turnaround team and their ability and willingness tosituation. If that is the case, a major re-structuring,
incorporate all of the company's management teamquick sale, bankruptcy, liquidation or other end result
and key employees in the process. It is important towill become the end game. While this can leave a
have a process structure which can achieve this. As ahollow feeling among the turnaround team, you will
business consultant, I understand process, but I alsofind that if a good turnaround process was
understand the importance of experience and freshdeveloped and implemented, yet failed, employees
ideas in a turnaround situation. It is the expertise ofand customers will understand. They will adapt and
an experienced consultant who can adapt process tomove on and so should you. Holding on to what
a particular situation in order to find unique, creative,"could be" is toxic to any future career or new
successful solutions to a tough situation, using theventure. While many may see this as failure and
strengths and experience of the turnaround teamdefeat, as a business consultant, I see this as a
and the insights of company managers andlearning experience. Something which will not be
employees, finally putting it all together in an agreedrevisited as owners and employees alike clearly
upon, synergistic, effective turnaround strategy, planunderstand, in the end, how they got there. The
and program.learning experience is invaluable and should be
The most important thing a business consultantleveraged into many successes in the future.
should do upon entering a turnaround situation is toHowever, if you follow a good turnaround process,
listen, get to know everyone throughout thewith an experienced turnaround team, the end result
organization and give them opportunities and avenueswill very often lead to success and renewed future
to communicate with the consultant and the CEO.growth.
The CEO should be doing the same exact thing