Corporate Crisis - The Turnaround: How to save your Company

The Turnaround: “how to save your Company”

CORPORATE CRISIS

The virtuous cycle of enterprises innovation

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What does a Company oriented to the change:

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Normally the Company changes over time …

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Other resources are involved in the organization

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The management communicates within the organization its orientation in a clear and precise manner.

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The Company also indicates specifically where it intends to go

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… and what it expects from its employees.

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At this point, the organization will likely go in the desired direction

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With a certain frequency management will check the coherence and understanding of communications.

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Periodically you may want to make changes to the company navigation plan in the event of a change of direction.

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In conclusion it will be vital to define and disseminate the strategic objectives of the enterprise.

It is very likely that, at this stage, the Company radically re-think their management system.

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The Company knows that the management system is an essential tool to enable your organization to achieve the stated objectives.

management system

organization

objectives

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Business objectives derive directly from the mission statement.

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The Company will use the objectives as well as constant reminders of the reasons for its management system

1) those focused on results :

- increase of profit

- increase in sales

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There are two types of business objectives :

2) those focused on the factors that enable you to achieve these results :

- extension of the employee skill;

- increased productivity;

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There are two types of business objectives :

- improvement of communications with customers.

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Objectives : Define the path to achieve the long-term business results with short stops time.

The Company has set the following objectives:Planning and Balanced Scorecard

• Marketing,

• Human Resources Management,

• Production Process,

• Innovation Process ,

• Purchasing Management,

• Data and Information Management.

The Company will set specific targets in the following areas :

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To establish and quantify the objectives for each area, the Company will measure and determine current performance of each one.

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The Company goals are ambitious but achievable... better to avoid the waste of resources!

It 's true that :

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management system

organization

objectives

But the Company's organization will determine their success factors for achieving the objectives.

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The Company knows that without a clear vision of the results to be achieved every effort will prove vain!

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It necessary start with clearly defined goals25

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Everyone will understand the reasons for which it is required a specific management model.

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If all this does not happen, the Company may be more likely in a crisis condition, with the need for a turnaround intervention.

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TheTURNAROUND is a reorganization and restructuring plan for a Company in deep crisis

1° phase : Where possible, terminate the causes that led to the crisis.

2° phase : Pursuing a recovery plan of profitability. 29

TheTURNAROUND

Analysis of critical and decisive actionThe Business Check

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It consists of a business analysis model and interventions to improve the competitive ability of the enterprise.

It provides for the assessment of the strategic plan, organizational, managerial and human resources of an enterprise.

The Business Check

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In this direction, the turnaround interventions for a company in crisis focus on analysis of:

- budget;

- strategic plan;

- organizational plan;

- management plan;

- human resources plan.

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The Business Check

The economic, financial and asset enterprise situation is examined in relation to the trend of recent years.

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The Business Check: Budget analysis

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Budget analysis : are the data reliable?The analyzes are often based on accounting documents which have serious limitations due to choices of a fiscal nature.

The Business Check: Interventions

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Budget analysis : reclassification of data

The documents are to be interpreted and reinterpreted as only partially fulfilling the company.


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Budget analysis : auditFor a more reliable and consistent with reality would require a statutory audit of the financial and economical statements.


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Budget analysis :The critical, positive or negative, emerge the same


- through the application of techniques for corporate accounting valuation;- thanks to the experience and intuition of the professional. 37

Budget analysis : reclassification of the budget

By placing differently the economics and asset badget value, you can calculate the indices.

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Budget analysis : indices

Photographing the economic situation and financial position of a Company at a given moment. 39


Statement that allows you to calculate the cash flow Pattern of a Company.

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Budget analysis for flows : cash flow


Table that provides information on the sources and of the uses of financial

resources of a Company.

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Budget analysis for flows : statement of cash flow


Budget Analysis : comparison with competitors

It 'a comparative assessment of the economic, and financial, which highlights the differences 42


Strategic Plan

Spreading in the Company culture and awareness of the importance of performing organizational models. 43


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COMPANY OBJECTIVES

CULTURE of management and employees

Strategic Plan


SUCCESSFUL BUSINESS

CULTURE

(beliefs and behaviour)ORGANIZATION

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Strategic Plan


Check the following alignment :

organization positioningon the market profits

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Strategic Plan


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Strategic Plan


Provide some basic elements for reading and interpretation of organizational behavior taken out by people within the Company.47

48… aimed at verifying the need for a possible redefinition of the organizational structure.

Open a phase of internal reflection to senior management …Strategic Plan


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Strategic Plan

The reference model used in the interventions together in a single sum, the elements internal and external to the organization: 49

Strategic Plan, element 1: Strategy.


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Strategic Plan, element 2: Structure.


- activity, - responsibility, - information, - resources, - authority.

how to allocate:

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Strategic Plan, element 3: Human Resources.


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Strategic Plan, element 4: Operational mechanisms.


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Strategic Plan, element 5: Information, decision-making, planning, check and development systems.


Men and women with their values, needs and knowledge.

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Strategic Plan, element 6: Human Resources.


To point out within the company what is right and what is wrong.

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Strategic Plan, element 7: Behaviour system.


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Strategic Plan, element 8: Reward system and incentive systems.


Interviews and analysis with business managers and the company staff.

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Strategic Plan: Methods of intervention.


Open dialogue with managers to understands to their nature, character and the system of values affecting the conduct of the enterprise.

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Strategic Plan: Methods of intervention.


Entrepreneurs must identify the system work more suited to the characteristics of the individual companies and the objectives to be achieved … 60


Organizational and Managerial Plan

…consistently using the tools available…

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… enhancing and developing the skills of employees. 62



Representing the firm as a set of processes, analyzing the sequence of operations carried out within each process …

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… the working method adopted by the dedicated resources,



.. the system of company internal and external interactions.

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Determine the critical,

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... inefficiencies,

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… the unexpressed potential, 68



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… unnecessary tasks69

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… and those missing.

Suggest measures to improve the organization and related management …

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… to achieve greater harmony

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… and speed.



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Follow the actors involved in change, to help them to interpret fully the "part" assigned to them:



1) Process analysis and corporate activities,

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2) Optimization of work systems,



3) Organization of business processes.

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The management controlMeasures the company performances

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The management control


Liability on objective parameters

Helps to enhance the corporate culture in the pursuit of goals.

The management control


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Human Resource Plan

To evaluate the potential of the people understood as unspoken attitudes present in each of us. 81


Optimize the relationship between individual goals and business objectives: 82

Human Resource Plan


1) Training needs analysis

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Human Resource Plan


2) Analysis of the culture and business climate.

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Human Resource Plan


These interventions are designed to achieve a significant improving of effectiveness … 85

Purpose


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Purpose


…of the efficiency,

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Purpose


… of competitiveness

… and entrepreneurial skills of the Company evaluated. 88

Purpose


Restructuring and business innovation

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- Careful management of Human Resources

- Good Quality Product Offered

To managethe possible

Crisiswith the

Employees

To startstrategicSinergiewith the

Suppliers

Thanks for your attention.

Dr. Vincenzo PresuttoBusiness management Consultant

Des

ign

by m

arta

mat

ano/

cher

ryla

b

Italy, Napoli - info: [email protected]

Corporate Crisis - The Turnaround: How to save your Company

Business

Transcript of Corporate Crisis - The Turnaround: How to save your Company