Management Consultancy

Turnaround Strategies

Turnaround strategies are different for different sizes and types of organizations.

Entrepreneur led small size companies

  • Issues in such companies are
    • Inadequate skills of employees
    • Insufficient resources
    • Investment decisions without assurance of returns/business
    • Customer confidence building for their capability to deliver
    • Investment in processes to deliver quality output
    • Recovery of Receivables
  • Typically the owners of such companies find themselves busy with too many issues. Their time availability is a limitation.
  • Strategy for such organizations is to increase the productivity of entrepreneur and reducing the risk of investments

Family led medium size companies

  • Issues in such companies are –
    • Firefighting in daily management
    • Finger pointing for assigning the blame
    • Delays in meeting the commitments
    • Just sufficient cash inflow to survive
    • Changing priorities for employees
    • Overworked and stressed employees
    • Employees seeking refuge with different patrons
    • Attrition of quality employees
    • Temptation to take short cuts
  • Typically such organizations find insufficient harmony amongst the thinking of owners
  • Strategy for such organizations is to define the focus area for building synergy in the efforts of the organization and reducing the Queues at different places

Large companies

  • Issues in such companies are –
    • There are silos in the organization
    • Benefits in one area are neutralized by the losses in other
    • Ownership of delivering overall results is diluted
    • Inability to exploit the full potential of highly skilled employees
    • Employees find themselves in dilemma of saving their job vs doing the right things
    • Employees do not find themselves fully empowered to deliver customer satisfaction
    • Significant saving opportunities because of rigid policies that are applied across the board
    • Large wage and benefits bill that pushes the company to restructure again and again
  • Typically in such organizations few large initiatives drive the profitability. In absence of such large successful initiatives the company struggles to maintain the growth rate
  • Strategy for such organizations is to align the performance measurements of individual functions to bring synergy in effort towards common goal and building capability to manage down trends in business cycles.

Service oriented organizations (Hotels, schools, BPOs, IT, Hospitals, etc.)

  • Issues in such companies are –
    • Insufficient skills of average employees for meeting the day to day customer needs
    • Low responsiveness towards client needs
    • Inability to meet high expectations of typical clients
    • High cost of infrastructure
    • At times customer loyalty is linked to individuals vs the organization
  • Typically in such organizations profit margins are low and effort needed to maintain the service quality is significantly high
  • Strategy for such organizations is to deliver customer delight by exceeding their expectations by appropriately empowering employees and aligning the organization effort by few common business measures

Government organizations

  • Issues in such organizations are –
    • Lack of ownership for results
    • High level of status consciousness at different levels of management
    • Insufficient empowerment of employees
    • Need to protect individual reputation that forces people to avoid bold decision making
    • Recognition of employees is not strongly linked to the genuine performance
    • Some people are covertly sabotaging the system for personal reasons
  • Typically such organizations have slow growth and low responsiveness. They do not inspire employees and stake holders for doing their best
  • Strategy of change in such organizations is to significantly enhance the productivity of efforts of employees and build confidence that huge success is achievable that would provide opportunities of self pride and other growth avenues for employees. (e.g. Delhi Metro)