I liked this article…I feel like hippotential did a good job pointing out the reasons businesses who are struggling financially will or will not turn around their business. The one take away for me was that we can often get so focused on solutions, without truly understanding the problem first. I know that I often jump after “White Knights” to come save me, before I truly inspect what the root cause of the problem is. It is only in finding the root problem that we are then able to make that turn and bring financial success to our organization.
Yesterday, we brieflytouchedon three different types of turnarounds–strategic, operational, and financial. The point was also made that many successful turnarounds are a combination of more than one type. If you have never had experience determining which type fits a given situation, chances are high that you will make some mistakes than could prevent the company’s successful recovery. There are at least two other reasons the desired recovery may never be seen–procrastination and delusion. We aim to explore both of these mindsets, but first want to dive deeper into our definitions of turnaround types.
- Strategic – the changing of markets and products, for instance going after new segments of the market.To do so would require new strategies and tactics with regards to promotions, pricing, design features that would need to be scheduled in the turnaround plan to guide management through the remarketing of the company.
- Operational –…
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