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Turnaround – trade unionised manufacturing company

Achieved a strategic turnaround in a traditional unionised environment and then sold the organisation to a purchaser prepared to invest. This was a major change programme where we worked with the executive team to undertake a strategic review of all functions. We contributed to the overall turnaround strategy and developed and implemented a human resource strategy that supported and enabled its achievement. This involved a major negotiated change to the terms and conditions of employment.

Turnaround

Scenario

In these difficult economic times organisations can often struggle to deliver the projected financial returns and need to examine their business strategy against the market, the customer requirements, their costs, revenue and profitability. Unfortunately the balance can get out of kilter with Leadership and Management teams lacking the skills and experience to turn the business around themselves.
In a turnaround situation there are some key things that you need to do one of which is to keep the bank informed at all times so that they can decide whether to give you the support you need and whether they believe that you and your team have all the skills necessary to successfully achieve the turnaround. They may require you to take on additional skills if they believe you are vulnerable in some areas. Here are the key activities that you will need to undertake:
Analyse the current situation
Identify and communicate to key staff
Develop a turnaround strategy
Identify skill requirements and set up turnaround team
Continuously communicate to all staff and key stakeholders
Review financial practices
Work with customers and with suppliers
Action turnaround plan
Monitor progress
Review plans and adjust actions accordingly
For sustainable change you will need to imbed many of the new practices and processes you have utilised to turn the organisation around, and continuously review your requirements to avoid getting into the same situation again.

The benefits

Turnaround gives a previously vulnerable organisation an appropriate and implementable business strategy based on a more secure financial foundation.

Often difficult decisions need to be made and implemented resulting in a successful organisation and greater security for its employees.