It concentrates on fixing the underlying business issues
that got you into the mess in the first place, and this in turn increases
profits.
Our 6 Key tips for an Operational Turnaround are,
1. Experience
Things get tough in Turnarounds, and achieving what can
sometimes appear like the impossible can only be done when you’ve got some
extra fire power and the benefit of a Company Doctor who’s been there before.
Make sure that you buy in this experience and hire an experienced turnaround
practitioner (read more here).
2. Lean
Getting more for less is the basic principle of Lean that is
incorporated within its waste reduction techniques. Waste in any business
translates directly into losses on the bottom line and so must be minimised. An
Operational Turnaround therefore often utilises the basic principles of Lean.
3. Team work
Getting everybody on the same page and pulling in the same
direction is essential and find out where this isn’t happening usually leads
to a root cause of a problem (read more here).
4. Common sense
keeping things simple and focussing on the basics. If you
keep it simple, then it’s easier to get everyone to understand it. Remember
communication is key and getting your employees, bank and creditors to buy into
your Turnaround plan involves keeping things simple.
5. Objective view
Sometimes the solution to a problem is right in front of
you, but Directors and Managers often can’t see it as they are too focussed
on day-to-day issues. An additional pair of eyes brings that objective view and
gives the opportunity to ask the tough questions and revisit existing
practices. Don’t hold back here, every stone must be turned over.
