Is it possible to turn around a company or reverse a company in decline? Yes, of course. Instead of presenting a turnaround model full of management jargon, I address this question from a real-life company turnaround example I handled.

It was an IT services company with a workforce of around 1000 professionals. The company was facing severe cashflow challenges. It was taking on too much debt. Its order book was full of low-margin business. The founder and company leaders had daily meetings and sessions to decide when salaries should be disbursed, vendors paid, and who to fire.

The first step in turning around this company is understanding and analyzing the balance sheet. The analysis gave me an insight into the strengths and weaknesses of the company. It helped me prepare a financial turnaround hypothesis.

Leadership often lies at the core of the decline of a business. Detailed meetings with each leader helped me gain insights into these individuals’ psychology, capabilities, and competence.

The company’s decline was taking at a rapid pace, cash flows were rapidly deteriorating, and the company was on the brink of bankruptcy. The ongoing saga of Twitter post the company takeover by Elon Musk, his action of firing half the workforce parallels the turnaround case I have described so far.

For reasons of confidentiality, let me list the steps that helped reverse the decline.

  1. Firing the leadership
  2. The business strategy was overhauled
  3. The business model was revised
  4. The marketing strategy and marketing plan were reworked
  5. A new monitoring system was developed
  6. A new team was hired. Each key member was given a clear set of tasks and performance measurement criteria.
  7. Fresh equity was infused, which helped tide the immediate cash flow challenge.
  8. A brand new operational plan was developed and implemented.

Supporting certification:

Business strategy

Business model innovation

Marketing strategy

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Sudhirahluwalia, Inc