friendship is a great start for business, yet there is a red line, when friendship becomes the breeding ground for Nepotism, challenging shareholder interest.
“That’s what friends are for….” – Nepotism in business
A post-COVID19 workplace scenario – Geographic borders will be removed from talent acquisition and put us all in global competition
COVID-19 has catapulted us to collaboration 2.0. The black swan event of a global pandemic has disrupted the work-environment. The urge to adapt is inevitably forced from the outside on companies, creating a situation of rapid change, where the dynamic of the transformation keeps accelerating. Companies are struggling to retain their operational integrity shaping the... Continue Reading →
In Corporate Turnaround – choose your battles wisely
High emotional engagement of the executive management can flaw the assessment of the situation of the firm and the decision, to discontinue an ineffective strategy. Yet, the lack of adaptability has been identified as a major reason for bankruptcy. This is intuitive, understanding, executives are maneuvering through vast uncertainties every day. In situations of rapid... Continue Reading →
We have all read the same books?! – Yet, performance in turnaround management varies widely
If the executive team gets stuck in any of the five stages of the "process of depression" during the turnaround management, it is likely to lead to the bankruptcy of the firm. Severe troubles of a firm are often paralleled by a situation of rapid change, where the dynamics of (involuntary) transformation keep accelerating and exceed the... Continue Reading →
Why turnaround specialists are always called in too late to distress firms
It is fair to say, turnaround specialists, are often onboarded in the very last moment of distress situations. For firms, this can be dramatic, as the onboarding of a turnaround professional increases chances for going concern from (only) 12.5% to more than 90%. Reasons are linked to the degree of the ability of an organization... Continue Reading →
Turnaround a company for going concern? Rather go to Las Vegas!
To secure going concern for a firm, a turnaround professional should on-board before the final struggle for economic survival has begun. If waiting too long, going concern is at stake and it is more promising to go to Las Vegas, to preserve investments. The suck of the downward spiral Root causes for distress situations putting going concern at stake... Continue Reading →
How long should it take, to turnaround a company?!
Steve Tobak from CBS MoneyWatch identifies three phases for a turnaround, in a situation of rapid change. The most important initial starting point of claiming control over the turnaround process is forgotten. When on-boarded, stopping the firm's downward trend is critical and the core objective of the turnaround CEO. This aims for multiple stakeholders, including investors,... Continue Reading →
Managing the turnaround – the moment of managerial truth
As a rule of thumb, a turnaround is considered something in the region of 12 for up to 30 months. Due to many uncertainties, the timeframe is varying. The objective of the turnaround is to reach break-even of the firm (again), or for start-up and growth firms, getting to the verge of scalability. Three milestones mark... Continue Reading →
How to survive a turnaround – pilots through the rough waters of distress situations
10 facts on turnaround situations (US data, research by TMS - Turnaround Management Society). 172 businesses file for bankruptcy in the US per day, this translates into 320'000 jobs lost every year due to distress situations of firms. Many turnarounds could resolve distress situations and lead to success if understanding and managing such situations of rapid change well.... Continue Reading →