COMPETENCE | KNOWLEDGE | COMPLETENESS | EXPERIENCE

TAM - TURNAROUND MANAGEMENT

Due to changeable needs of markets, companies are forced to adjust their business activities daily. The adjustment process is often too slow or not completely successful, which may lead to loss of value and vision for the future of the company. These moments require special strategic and management skills. 

We use Turnaround management concept to restructure companies and redefine their strategic orientation. By managing the negative aspects of business activities, we increase value and profitability of the company. Knowledge, experience and tradition in combination with modern business methods are a guarantee for results and quality of our services.

WHAT IS TURNAROUND MANAGEMENT?

Turnaround management includes both drafting and implementation of strategic plans with restructuring targets, as well as returning the business back to normal by achieving financial liquidity. 

Other forms of management are based either on creating or adding something new to the existing business, while turnaround management deals with change or renewal of processes which, for some reason, failed.

FACTORS WHICH CAN BE INFLUENCED BY IMPLEMENTING TAM:

  • autocratic management
  • inefficient communication
  • neglect of individual human abilities
  • inefficient programmes for compensations and grants
  • vague goals of the project or the company
  • loss of clients
  • inadequate analysis of market and strategies
  • lack of timely and correct financial information
  • history of failed plans for the extension of business
  • uncontrolled or poorly managed growth

 

IDEA

 

We restructure companies with problems, achieve added
value and increase the total value of the company.

We redefine strategic orientation, prepare for
a higher degree of development and leave
behind quality management which will carry out the owner's goals.

Knowledge and experience enables us to
properly react to negative aspects of business
activities resulting from activities of competitors.

 

 

 

 

 

 

 

 

TURNAROUND MANAGEMENT - STEPS


1. Quick assessment of present situation

  • end game - is restructuring possible or are sale and liquidation best solution? 
  • short-term survival - Is the company sustainable? Is there a core business? Are there enough funds for recovery?
  • Long-term strategy - necessities for achieving financial stability and increasing the value of the company

2. Management

  • during turnaround, managers who are not able to develop and implement a recovery plan or are disrupting it, should be replaced
  • taking control over the company on a temporary basis

3. Urgent action

  • troubleshooting: activities, product lines,R&D, marketing initiatives etc.
  • halting cash outflow
  • sales of unnecessary property
  • cutting expenses down
  • liquidity improvement and control of money flow
  • focusing on “healthy” activities’ money inflow 
  • creating opportunities for implementation of a long-term strategic plan
  • preparation for quick sales in case long-term strategy is not sustainable

4. Restructuring

  • refinancing of the company which will ensure long-term survival and profitability
  • recruiting new management
  • ensuring long-term survival

5. Back to nromal

  • implementation of strategic growth plan
  • supervision of achieved goals
  • leaving active management role
  • help with after-recovery problems
  • constant consulting services

 

STAGES OF THE PROJECT

Presentation of project

STAGE I

  • Analysis of present state

Gathering necessary documentation
Interviews with management
Tape of organizational processes ?

  • Presentation of present state in which the company is

STAGE II

  • Draw up and presentation of business plan

Defining and organizing key processes
Plan revenue and expenditures
Budgeting according to profit centres

  • Risk assesment

STAGE III

  • Implementation of business plan

Development of planning and budget system
Outlining processes and procedures
Cost reduction and deadline shortening

  • Control of the implementation and reporting

STAGE IV

  • Draw up and presentation of the final report with results

Result of the project
HR solutions which will maintain a successful business

  • Continued adjustment and system redefining in accordance with change of business surroundings