Business Turn-Around – Looking Beyond Spreadsheets
Business leaders must always be on top of their game to ensure the organization is not only performing exceptionally but continually improving and staying innovative to be relevant in an ever changing and highly competitive world. Over time, organizations that have enjoyed success can become complacent and lapse into gradual downward performance spiral. Leaders are typically in denial or develop clouded perspectives which impact their ability to make objective and effective decisions to break away from declining performance trends. The common approach taken to turnarounds usually involves a focusing on financials. Leaders gravitate to what is easy to diagnose and “fix” and spreadsheets become the primary remediation tool. Emphasis is placed on making cutbacks or securing additional loans. These tactics may buy time but they are “band-aid” solutions that only address the symptoms. They do not address the underlying systemic causes that are contributing to declining performance trends. Strong financials are important but they are a by-product of how effective a business operates.Â
If your financials are sending warning signs, understand your financial health but then put the spreadsheets aside and take the following measures to begin the transformation to a sustained healthy state:
Assess the organizations readiness to drive and implement change. Look at the leadership, culture, discipline, accountability, organizational structure, etc. Readiness is critical to the success of any transformational strategy
Examine the key operational components from Strategy formulation to Execution. Strategy provides direction and focus for the organization for what/how it will Market, Sell, Deliver and Evaluate; while execution drives the supporting activities that align to achieving the strategy. Examine the respective processes and workforce talent. Identify what’s missing, weak, or broken. Cut the excess and the “nice to haves” once you have a better understanding of each area.
For those risk area, develop practical, prioritized and actionable remediation strategies and tools to address these areas
Regularly evaluate and monitor performance against the plan and adjust as appropriate
While this seems like a simple approach, leaders and organizations struggle due to clouded perspectives, focusing too much on financials and overlooking or dismissing the systemic issues. It is imperative to be brutally honest in this process. Consider involving a 3rd party to facilitate this process to ensure you get an objective perspective and get-well plan. Stick to the plan and be patient – this takes time. Try and avoid distractions or being seduced by “rainmakers” or “silver bullet” technologies that assert immediate fixes. These could be a great complement once you have your house in order and on a healthy trajectory.  Â
For more information - Â contact either:
Pierre Monacelli [email protected]Â Â
Tracy Hobiena [email protected]
Intrepid Performance Partners (IPP)