|
Sometimes Indian River becomes engaged in the early stages to "Stop the Bleeding" and help the client get back on track and regain profitability or recapture lost market share. However, sometimes we aren't engaged until the late stages where the challenges are much more difficult.
Sometimes things just happen. Maybe we lose focus and take our eyes off the ball. Maybe we don't recognize the signs. Sometimes it happens quickly due to a loss of a major customer or loss of a major product line. Sometimes it is a slow, gradual process. Market share seems to evaporate; gross margin exhibits an extended period of decline. Morale suffers, employee turnover increases, net profit declines, costs seem to get out of control and losses become imminent. Owners, Presidents and CEO's may find themselves in a situation facing these warning signs mentioned and many more. The warning signs of a business in trouble.
Defeating the Monster
What comes next, if the monster isn't defeated, is not pleasant. Deteriorating equity leads to negative net worth, which leads to extreme financial pressure, bank pressure and sometimes-forced liquidation or bankruptcy.
The Indian River team has stood shoulder to shoulder with our clients helping them defeat that monster and regain control. Sometimes it's a simple matter of just "Stopping the Bleeding." Other times it involves a complete restructuring of the entire organization. It may even be a simple case, caught in the early stages of stagnant growth and alarming trends, that requires nothing more than a renewed focus. And lastly, it could even be a sign that it's time to rejuvenate the business and prepare it for sale. Every case is unique.
Indian River has experience working with clients in every one of the scenarios outlined and more.
Why Restructure?
The need for restructuring an organization can be a result of many factors, including:
Whatever the reason, organization restructuring should be done from the work up and not the hierarchy down. You start with what is right, not what is acceptable. Build a chart with no names. There will usually be people left over. This helps put things in perspective, provides focus and facilitates strategic, tactical planning and organization development.
Rebirth of the Profitable Business
Sometimes Indian River becomes engaged in the early stages to "Stop the Bleeding" and help the client get back on track and regain profitability or recapture lost market share. However, sometimes we aren't engaged until the late stages where the challenges are much more difficult. In this later stage we typically immediately initiate "Survival Planning" based on our diagnostic assessment to regain control of the company for the owner or President (Go to Business Assessment for more information). Once that is accomplished, a restructuring process occurs to stabilize the organization and return it to a growth mode or in some isolated instances, prepare it for sale.
Troubled Businesses Only?
Our Turn-A-Round practice isn't just for the company that finds itself in trouble financially. Often times a successful business with demonstrated profitability reaches a plateau. Success in their growth initiative doesn't come as easily as it once did. Things just seem stale and stagnant.
Most of the principles used in a Turn-A-Round situation can and do apply to successful businesses that need strategic platform and tactical implementation to get beyond the plateau.
Indian River has the diagnostic capability to identify the roadblocks often ignored or overlooked that create the plateau. We have a strong team of professionals with "real world experience" dealing in all phases of business success. We understand the difference between strategic planning and business planning. We know the most precious asset of any organization is its people as they are the ones that must accomplish the objectives. We address all phases of the distribution process from channel management to strategic planning. We perform within the bounds of strict confidentiality.
Worry won’t help, but we will. Give us a call with your questions and concerns, or email
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
.
|