What does Day One look like for a new CEO
You have just been appointed as the CEO of a business that is in crisis. In a very large part, the company’s success - or failure – now sits with you. You have the ability to control everything that happens. Every pivot the company takes as it changes direction. Every...
Turnaround + Disruption: managing a short runway for strategic decision making
A “normal” turnaround environment just managing financial distress looks relatively straightforward compared to the situation many boards and executive teams are addressing as the world emerges from lockdown and economic hibernation. With the addition of massive and...
A super charged workout environment: another change from the covid-19 economic crisis
The debt workout market has always operated with the background logic that if all creditors want all of their money now then they will probably all end up with nothing! In Australia, the legislative measures and strong encouragement coming from the Federal Government...
Pause for thought: 7 tips for stepping up governance under financial stress
Governance matters most when a business is experiencing financial stress. Taking a deep breath and revaluating governance processes before responding to a crisis reduces risk, optimises decision making and hopefully speeds the path to recovery. There is often a...
What Does Early Intervention Look Like for a Company Board Facing a Downturn?
A good metaphor is a captain and crew readying their ship for a coming storm! In context, it is board which is quick to recognise forthcoming challenges for a company such as declining markets and act immediately to prevent a full blown crisis. This leadership test...
10 Tips for CFOs in a Downturn. Don’t be swimming naked!
Are we experiencing a mild financial downturn or the beginning of the end of civilisation as we know it? I don’t have a crystal ball but suggest that at the very least there are more difficult, risky and uncertain times ahead and we certainly seem closer to the end of...
Avoiding Being a Casualty of the Funding Disruption of the Not For Profit Sector
Government reform and the consequent funding disruption for not for profit entities (NFPs)providing aged care and disability services is necessitating fundamental change as operators need to function much more like private corporations to remain viable and compete....
What Good Looks Like For Board Risk Management Post APRA’s Report
Following the Australian Prudential Regulation Authority report into the CBA and with additional impetus provided by the revelations from the Hayne Royal Commission, the role and governance of boards and their risk and reporting structures are being re-examined. In...
Treading for Boards: Engaging Advisers when Trust breaks with the Executive
A break of trust between a company’s board and its executive is a seismic event in any organisation, often leading to the engagement of independent advisers untila new or restructured executive is in place. Warren Buffet said: “trust is like the air we...
Looking for a turnaround CFO? Don’t die waiting!
The urgent need to recruit a CFO is a common occurrence in a turnaround with the exit of the incumbent often the catalyst to drive change. Unfortunately a desire from stakeholders to find the "forever" CFO to drive a turnaround and long term performance improvement...
Turnaround plans that survive beyond lunch!
A constant battle for the entirety of any turnaround is maintaining momentum. Enthusiasm for the turnaround and acceptance of the need for change can evaporate in the period between a team meeting and when everyone gets back from lunch! Initial momentum progresses a...
Time to cut and run from a turnaround?
Most recently on this blog we discussed New Year's resolutions to complete a turnaround. Alternatively (and somewhat gloomily) reflection in the New Year may also cause pause for the thought that a turnaround is no longer possible while continuing will only cause a...
New Year’s resolutions for a turnaround in 2017!
As corporate Australia returns from a beach or snowy mountain somewhere, its also a good time to consider any turnaround plans for 2017. The break over summer provides an opportunity for management and boards to clear the head, reboot strategy and renew focus on...
Turnaround money chasing yield in the mid market
Despite and perhaps because of the risk and uncertainty in the economy and financial markets, in Australia there is a growing amount of private money investing in turnaround opportunities in the mid market. This private investment is coming from wealthy families and...
Cash Flow Levers To Buy Time: 10 Quick Ways To Get Some Breathing Space
Every turnaround process lives and breathes on cash flow! Quickly pulling "cash levers" may well be essential to survival especially when trading is marginal or loss making. Cash levers: "Buy time" until there is a turnaround in operations or another long term...
5 big risks you may need to take in a turnaround
Making decisions with significant downside risks are a necessary reality of achieving a successful turnaround. Avoiding such risks/decisions is worse than doing nothing at all, while unfortunately the decisions often involve unattractive choices between "bad and less...
Pre turnaround checklist: 25 questions to answer before you commit to a turnaround plan
Before you start a turnaround, planning is always important. You need to have a detailed plan and focus on executing it well. Setting the right plan is imperative not just for achieving a successful outcome but also realising goals expeditiously and efficiently. To...
Tips for managing a transaction to achieve a turnaround
A debt and/or equity transaction is often the best solution for turning around a company's fortunes. If well managed it can be a panacea to the ills of an organisation, providing financial certainty which would not have otherwise been achievable except through a long...
How to build a relationship with your financiers in a turnaround
Like it or not, banks and other financiers will be a key stakeholder in almost every turnaround with many situations arising when critical support from your banker is needed such as interim funding or waiving of a technical default. A strong relationship with your...
Execution risk in a turnaround: how to understand and reduce it
Execution risk is all pervasive when a turnaround is being effected, if you get it wrong it can negatively impact all elements in a turnaround, from operations to strategy. Frustratingly, you may not and will never know why it went wrong. A business definition...
Getting the most out of interim turnaround executives
Recruiting new C-suite executives is a necessity for many turnarounds. These people will be required to effect necessary change in an organisation and will hopefully bring new skills, enthusiasm and ideas to a management team. Some of the new recruits will be...
Managing family succession issues and turnaround
The difficulties around family succession in a business are well documented. Key issues include the capability and goals of the succeeding generation, relationships within the family, time frames and process for management transition and of course financial...
5 big common mistakes in a turnaround: what not to do!
Despite best laid plans, all turnarounds are full of mistakes, they happen continually. However, there are some major common mistakes which can prove fatal to a turnaround process. Management and directors need to continually consider their strategy during a...
5 precious tips to help you get better at managing your cash flow
"Cash is King" and in no situation is this more prevalent than in a turnaround where often having enough cash flow will determine whether the business lives or dies! Good cash management gives the company the "breathing room" during a turnaround to for instance fund...
Importance of positivity and strategic perspective to achieve a turnaround
A turnaround process is a long hard slog for the management team, employees and stakeholders of a company. For management, there will always be times when: The whole situation is becoming overwhelming. You do not see how you will get to a solution. What is being...
6 Business Turnaround Myths
Distressed businesses are almost becoming common place. And as more and more businesses 'turn themselves around' we see many myths pertaining to turnaround and transformation that ultimately can see businesses come unstuck all over again. 1. Equity transaction can fix...
7 things you need to know about technology disruption of turnaround
1. Capital, companies and creditors will be connected driving liquidity Online market places, crowd funding and social media platforms will drive an oversupply of money into turnaround and investment opportunities. Some interesting Australian sites to check out are...
Importance of early intervention in a turnaround process
There are important problems that result from delays to a turnaround process being commenced ie if there isn't early intervention to address relevant issues. 1. Reduces options available A company can quickly progresses from underperformance to a cash and funding...
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