A process dedicated to corporate renewal.
- 1 hr1 hour
- Zoom Session
Turnaround management is a process dedicated to corporate renewal. It uses analysis and planning to save troubled companies and returns them to solvency, and to identify the reasons for failing performance in the market, and rectify them. Turnaround management involves management review, root failure causes analysis, and SWOT analysis to determine why the company is failing. Once the analysis is completed, a long term strategic plan and restructuring plan are created. These plans may or may not involve a bankruptcy filing. Once approved, turnaround professionals begin to implement the plan, continually reviewing its progress and make changes to the plan as needed to ensure the company returns to solvency. Stages in the repositioning of an organization: 1 The evaluation and assessment stage 2 The acute needs stage 3 The restructuring stage 4 The stabilization stage 5 The revitalization stage Hurdles or challenges Three critical hurdles or challenges that management faces in any repositioning program: - Design: What type of restructuring is appropriate for dealing with the specific challenge, problem, or opportunity that the company faces? - Execution: How should the restructuring process be managed and the many barriers to restructuring overcome so that as much value is created as possible? - Marketing: How should the restructuring be explained and portrayed to investors so that value created inside the company is fully credited to its stock price?