When a company finds itself under financial stress, they may turn to a turnaround manager like John Haag to help them develop a turnaround management strategy. These types of strategies are used in order to help a business restructure or renew their management team, policies, and procedures in order to stave off financial ruin. Understanding the five steps involved in a turnaround management strategy will make it easier for you to identify if and when it should be employed.
- The first stage of a turnaround management strategy is the define and analyze stage. This stage is where performance problems are identified. Once these are identified, they need to be thoroughly analyzed in order to arrest any further decline in the business.
- Once the business has been steadied, the strengths, weaknesses, opportunities and threats of the business must be identified. This process helps the business discover the long term vision, mission, and objectives for the business.
- During this step, the strategic plan is developed into an action plan. A list of all the actions and tasks that need to be completed is compiled, along with the time frame to complete each item on the list. This list includes daily, weekly, and monthly activities that need to be done.
- Once the action plan is created, it must be implemented. This includes ensuring that all the staff is coached and supported. Employees must be aligned with the overall vision that was established.
- Finally, regular reviews must be completed to ensure that the company continues to improve and any corrective actions needed are identified.