Week 2 Flashcards
Why turnaround plan
Focus, compass, performance measurement (it gives quantative and qualitative goals) & conviction and give account (helps in negotiations with financiers and stakeholders)
Tien elementen uit een turnaround plan
- Company profile and causes of decline
- Analysis of external environment
- Turnaround vision (New ambitions of the company, on services and on culture, unique selling points)
- Turnaround strategy (Detailed presentation of retrenchment strategy, recovery strategy and cultural change)
- Operational analysis (key problems in each core business process)
- Operational action plan (Detailed inititatives that adress weakness and opportunity identified in the operational analysis.)
-Financial projectons (Scenario analysis, how turnaroudn will lead to renewed profitability)
- Time scheme
- Risk and financial restructuring analysis (external and internal risks during turnaround)
- Executive summary
Testing the turnaround plan
- Are strategies consistent with the external competetive environment? (Competitive environment in the furure)
- Is strategy internally consistent? (In het intern consistent, komen de strategies overeen met de corporate doelen)
- Does the strategy have an appropriate view on available resources? (No gap between the strategy and company’s critical resources: Money, human capital and physical facilities)
- Does the strategy involve an acceptable degree of risk?
Magic question: Why should a customer buy from you
Raamwerk turnaround
Key objectives:
- Take conrol
- Rebuild stakeholder support
- Fix the business
- Resolve future funding
What
Seven key ingredients:
1. Crisis stabilisation
Crisis management
Quick-scan analysis and decision making
2. Leadership
Selection of turnaround team
Project management of the turnaround
- Stakeholder support
Stakeholder management - Strategic focus
Diagnostic view
Develop business turnaround plan
Implement business turnaround plan
5.Organisational change - Critical process improvements
- Financial restructuring
Prepare and negotiate financial plan