Learn More About Turnaround Management and Corporate Restructuring
The retrenchment method of turnaround management refers to wide-ranging short term steps to stabilize the company, reduce financial losses and to work against the conditions that are responsible for poor performance. Essentially, it is a strategy to reduce the business scope by downsizing, outsourcing, selling assets, eliminating unprofitable lines and abandoning tough markets. The goal is to eliminate financial losses and rev up productive activities. There is a refocus on the core business to attain a better market position.
Also known as an entrepreneurial strategy, the repositioning strategy is used to create revenue with a change in market position and product portfolio. Steps are often taken to modify the mission of the company, explore alternative sources of revenue, enter new markets and develop new products or services.
Replacement is the process of replacing CEOs or top managers with new ones. It is believed that new managers can breathe new life into a business due to the experience and different backgrounds of their previous jobs. Replacement is definitely called for when you've got top managers or CEOS who are unable to think out-of-the-box and are resistant to change. There may even be existing leaders who are unqualified or incapable of implementing a successful turnaround.
The renewal strategy is focused on long-term actions for successful performance. Existing structures are analyzed. If necessary, some divisions may be closed, new projects are developed to expand into new business areas. Internally, resources or routines may also be removed. Often, innovative core competencies are implemented to stabilize the company.
Organizations and companies like the Strategic Management Partners and the Turnaround Management Society (at http://www.Turnaround-Society.com) can assist businesses with a management turnaround. Both use the International Turnaround Management Standard (ITMS) to target the major problems causing business failure. The ITMS is a whole-business approach that focuses on all the factors needed for success, including best practices, project management tools, financial aspects, change management tools and strategic reorganization methods. By focusing on all of these factors, sustainable recovery is much more likely. It is a structured and logical approach that creates a shared responsibility of the turnaround management team, major stakeholders and board members. Strategic Management Partners, Inc. At http://www.strategicmgtpartners.com/ specializes in implementing the ITMS standards to help companies with their corporate restructuring needs.
The ITMS provides a checklist of activities that are outlined on a timescale. At any time, companies can see what stage they're at and what steps need to be taken. Steps are outlined based on learned reports and case studies with proven success. Even CEOs and top managers without turnaround experience can utilize the ITMS with outlined checklists and guided procedures. Simply put, the ITMS identifies the causes of decline and implements effective strategies for long-term and sustained recovery.