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When does a business decide it needs to fundamentally change course or steer the risk altogether? Turnaround expert Cyril Moreau looks at some of the lessons learned during a typical interim CEO career. For more information, please visit us now!
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Home What WeDo Who WeServe OurBlog AboutUs ContactUs BestBusinessTurnaroundServicesProviderinUSA|IEConsulting LLC Posted in Turnaround Interim Management | Posted by: Cyril Moreau | Tagged: Best Turnaround Services Provider,Business Transformation ServicesUSA,RapidCostReductionConsultingUSA,TurnaroundBusinessTransformationUSA,TurnaroundInterimManagementServices|Leavea reply CyrilMoreau,theinterimCEOandturnaroundexpert,leveragesaplannedapproachtoassesshowfarandhowfastyouneedtochange. Whendoesabusinessdecideitneedstofundamentallychangecourse orsteertheriskaltogether?TurnaroundexpertCyrilMoreaulooksat someofthelessonslearnedduringatypicalinterimCEOcareer.
“Whenthesignsofpotentialfailurebecomeapparent,Iamoftenapproachedbyshareholderstoreviewtheirbusinessforitsturnaround potential.Theyarealmostalwaysseekinganswerstothreefundamentalquestions: Canthebusinessbefixed? Whatwillitcosttogetusbackontrack? Isitworthpaying? Thereiscertainlynomagicformulatoanswerthese questions,butmanyyearsspentaroundunsuccessfulbusinesseshavetaughtmethat therearesomestepsthatwillhelpstakeholdersmaketheverymuchneededdifficultdecisions.” AssessingtheIndustryandUnderstandingtheCommercialEnvironment: The troubled business that is getting under the skin of the region, combined with adjacent industries, is going to expose potential areas of opportunityforfuturegainsaswellasgiveanoverallpictureofthecompany’spotentialdirection. Itwillbegintoprovideanindicationofthe scaleofthechallengeandthecostsassociatedwithgettingbackontheroadtodevelopment. AssessingtheCompanyProperly: Itisimportanttoidentifysignificantliabilitiesandrisksaswellassignificantassetsfromastrategicbusinesspointofview,andnotjustfroma cash-value point ofview.
Thisknowledgegainedthroughresearch,relationships,intuitionandexperiencewillbeusedinthecreativeplanningprocessaswellasinthe final assessment of risk versusreward. PlottingACourseforCreativePlanningandLong-TermSuccess: Thecreativeplanningprocessinvolvesassessingthe‘boxofbits’, inwhichthecompanyhastofindoutwhatcanbedonetomakemoneyinthe short and longterm. Itisimportanttorememberthatthesetwocommercialtimelinescangeneratedifferentagendas,asshort-termcashgenericactivitiesmay not be sustainable or aligned with the strong strategic market position desired over the long term. However, a dual focus on both may be requiredduringtheturnaroundtoreducethecashcostofrunningthe business. TurnaroundEvaluation: Youneedtohaveaclearviewofwhetheritisworththecost,effortandriskinvolved.Youneedtounderstandthatthe businesswillpotentially be worth the shareholders who are considering turnaround funding. You need a road map to rule out the estimated travel t ime and any possible damage along theway. Leave aReply Youremailaddresswillnotbepublished.Requiredfieldsaremarked* Comment
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