Key Business Issues

Given these symptoms are normal considering a restructuring or turnaround, which has a number of important steps to tackle the key aspects that enable the company in trouble, create value and return to productivity and profits. The first step is to diagnose the reality in three stages: designing a pre diagnosis, which is equivalent to the first consultation with your doctor. In this part are carried out detailed examinations and goes searching for information on lospuntos core business management. Then prepared detailed diagnosis (competitive strategies, organizational structure, organizational culture, marketing strategies, production, human resources, economic and financial strategies and evaluation of information systems). Finally, there is a diagnostic table summarizes the economic and competitive situation of the company. The second step is to plan for emergency stabilization.

Concrete actions are planned to improve the cash position to reach stabilization, communication is the diagnosis and plan. It is important to understand key business issues such as profitability by product, understand the market and competitive position of the company, find ways to reorganize efficiently, changes in raw materials, reducing and focusing on products that generate greater value and where the company more competitive, debt refinancing, changes in policies and search collections outsourcing non-core activities. There are some actions that are planned to achieve stabilization. This stage is hard, because there are interests of shareholders and senior management with projects, people and approaches to be evaluated and equally no differences depending on the mission and profitability. The third step is the implementation of changes. At this stage emerging resistance to the proposals. The key to that may be generated which are planned are: have a good diagnosis and good plans restructuring, there is a recognized leader and experienced, committed management team with recognized professional qualifications and experience and finally, an efficient mechanism for communication and participation. The fourth step, growth and development should occur once the company back on track the efficiency and profitability. In should then resume growth plans in terms of its mission and vision, and monitors the indicators that can announce that moves away from the healthy values of management. It is very important not to advance this process to avoid falling into a vicious cycle that hurts the business and just as they begin to improve again in plans run riot unattainable, unfeasible, and growths pharaonic projects that put back in the difficult decision to restructure or die. Turnaround: reversing the performance of a company was in decline and a recovery failure and success.

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