In a turnaround situation, cash is everything. Summarized here is the manufacturing turnaround strategy I have used to achieve major reductions in working capital and permanent production cost – sizeable positive cash flow impacts – fast.
Don’t let a lack of understanding of just how devastating a bankruptcy can be to your company’s equity value and control prevent taking pre-emptive action to maintain control of the company’s fate – BEFORE the police are chaining the doors to the facility. Otherwise, the work of many years, even of a lifetime, and the equity value the company has built up can shrink to nothing in a startlingly short time period.
This article discusses the role of outsourcing in a turnaround, identifies the pitfalls that can derail the turnaround effort, and provides concise guidance on how to manage outsourcing in a turnaround effort while avoiding the wrong kind of surprise that could, in a financially fragile situation, prove fatal.
We often become so involved in the cash management, expense control and cost cutting aspects of an operational turnaround that we lose sight of the fact that this is a real, live business, with real, live people with hopes and fears who must perform well for the turnaround to succeed. This article puts the essential nature of effective leadership in a turnaround in in a clear light.
Paul Deis - Blog 