Every year, thousands of promising companies across the globe find themselves at a turning point. It could be that revenue targets aren’t being reached, the business model is no longer viable or long-term sustainability is called into question. These are problems that numerous businesses are especially facing in the midst of a global pandemic.
Management might get tough calls from investors, face increasing momentum from competitors, or realize their products are no longer meeting the changing needs of consumers. Whatever challenges they face, it’s clear that something needs to change. While it’s easy to panic, this turning point doesn’t have to end in failure. Businesses can turn themselves around with the help of turnaround management advisory.
Effective Turnaround Management Tips For Your Business
1. Assess the situation.
Before a successful business turnaround can be implemented, it is crucial to understand what got the company where it is now. Providing that the company’s products or services are competitive, the issues affecting the performance of a sales team can range from poor management to an ineffective sales process to low morale, which is caused by any number of factors. Insight can be gained by getting close to the company’s sales force, sales processes, and customers to determine why sales are not progressing to plan.
2. Hire consultants.
Ineffective management teams often say they need greater funding to correct the sagging business, but throwing money at a problem does not work. Those who created the problem in the first place will not know how to fix it, so providing them greater resources is a mistake: it wastes money and degrades employee morale. Hiring a turnaround management advisory assistant can help get your business where it needs to be.
3. Create a plan.
Don’t be discouraged if your research points to the need for significant changes. Owning up to your company’s shortcomings is essential for a successful turnaround. The best way to move forward is to tackle your biggest weaknesses by devising a strategy that addresses those challenges head-on.
Consider the team an integral part of the turnaround plan and be transparent about where the company stands and where it’s headed. Once your team and your investors are aligned with the overall strategy, they will feel empowered to own the plan and play an integral role in its execution. Don’t be afraid to make tough decisions, though. While your staff may have great ideas, it’s essential to stay focused, consider your resources and only move forward with the ones that fit within your overall strategy. If an idea is proposed that could steer the plan off track, don’t hesitate to say no.
4. Measure performance.
Metrics should not only tell company leaders where they have been but should also be used to gauge future performance. Management should be able to clearly describe how the metrics it uses will predict future results.
5. Know your core values.
At the heart of culture are the core values a company embraces. Core values are like the Ten Commandments. They are simple action statements that define the principles the company believes in, not fuzzy declarations that can be interpreted at the whim of management. They should be published and posted throughout the company. Employees should understand the corporate commitment to them, and that disciplinary action will follow their violation.
6. Recognize achievements, celebrate progress.
Most importantly, be a cheerleader. By being transparent about how the business is performing and celebrating successes, no matter how big or small, you’re sending an important message that you’re moving in the right direction. Confidence will grow and your team will feel more motivated and invested knowing that their hard work is paying off. Great leaders are great communicators: the team should know and be acknowledged when progress is being made.
The Bottom Line
Turnarounds are as much an art as they are a science, and it takes both courage and tenacity to make them successful. What’s important is to believe in yourself and your team. Have the confidence that you took the right steps to identify challenges and create a smart strategy. With the right team in place, you’ll be able to dive in and stage a comeback.
Limitless Investment and Capital Turnaround Management Team During the Pandemic
The Limitless Investment and Capital Turnaround Management team will collaborate with you to quickly assess key negative financial pressure points and market conditions, then follow-up with strategic insight to ensure a company’s survival. Our team of diverse professionals has the knowledge your business needs to make it through the uncertainties of a global pandemic. Schedule a Free Consultation Today!