How Turnaround and Transformation Consulting Can Help a Struggling Business

The disruptions taking place in businesses across the globe today vary in origin, but the outcomes and consequences are equally painful for companies. Using turnaround and transformation as tools to help companies of all sizes can be the pivotal point for the future of a business. However, it is vital to have experienced consultants implement such measures, as turnaround and transformation will lead to major changes, and successful changes require expertise and thoughtful strategy.  These changes can come in the form of overall company culture and mission, and as short-term improvements to a business’s bottom line.  Typically, these changes do require precise timing, and that is why many turnaround and transformation consulting attempts do not obtain the desired outcome.  Resources and research on how to complete successful turnaround or transformations is minimal, and are some of the reasons why they are so difficult to implement successfully.

What is the difference between turnaround and transformation?

Turnaround typically entails an overhaul of a company, which can include; 

• Employee incentive plan review
• Pre-bankruptcy planning
• Working with creditors and negotiating
• Improving disposing of non-core assets
• Redesigning the business plan
• Addressing liquidity issues

The goals of a turnaround usually include structural reductions, feasible short-term goals, and preparing a company for transformation.  When performing a turnaround, consultants need to be prepared to have the necessary tough conversations with leadership.  Business leaders need to be honest and transparent to help consultants quickly identify the most vulnerable areas of the business.  Management consultants play a vital role in critical thinking and imploring execution discipline, and a business must support the consulting team with whatever resources and information they need.  Transformations are major changes in operating model, people, processes, and the overall organization. Solutions focus on weaknesses or problems a company has and aim to achieve a drastic improvement.  

Transformations usually involve:

• A “selling” of a company vision
• Extensive changes to personnel
• Transitions of revenue models
• Cash flow management

In such scenarios, the most important aspect is to have a clear understanding of the goals and the company vision.  Transformation usually includes exploration and diagnostic work. When compared to turnaround consulting, there is typically a demand for more detailed direction when it comes to systems, structure, and strategy.

How NMS Consulting can help

To understand what your company needs, we start by interviewing leaders and asking a series of questions to identify the necessary changes that will create value.  If a company is in a dire situation, whether it is operations, capital structure, or strategy, a turnaround approach may be needed.  If on the other hand a business is not on the brink of collapse, but is looking to achieve a higher level of success, our transformational approach may be the right method to implement.  This would include preparing a bold vision for how your business must change based on our objective analysis of its core competencies and major hurdles.  

Importantly, we strive to provide a “realistic” timeline of what can be achieved in the near term versus long term .  Such a plan includes managing change from start to finish, and aligning leadership goals with what is necessary to work through the disruptions.  Creating a transformation or turnaround plan is just the beginning, as the execution of such plans will require the right consulting approach.  The approach we take also depends on the type of organization your business has – whether it is centrally controlled by a few managers, or a more distributed model.

While turnaround and transformation can come in many different forms, we view such consulting as a cross-functional effort to change the current trajectory of a company, whether it is operational, strategic, or financial in nature.  If you feel your company is not performing at its peak, we are here to guide you with a team effort which will culminate in improved and sustained performance.  Whether your company needs a complete overhaul, or simply additional guidance on some needed changes, we will be at your side until the goal is reached.

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