HOLISTIC TURNAROUND METHODOLOGY

Successful corporate turnaround and transformation plans should be holistic and based on addressing both strategic and operational issues in the short and long term. Such plans should seek not only to cut costs but to grow revenues and change the corporate culture in order to manage the vagaries of the marketplace.

The Turnaround Express is the time-tested change strategies of the East and West.

• Increase Your Sales Revenue by 10% or more over the next 247 days and profit growth of 105% in 9 months.
• Sustain Your Profit Growth by 15% Compounded Annually Over the Next 10 Years by Simply Applying My Proven Strategies.
• If Your Business is "Under-water", Turn it Around in 263 Days and Leave Your Competitors Dazed.
• Reduce Your Overheads and Expenses by 60% or more Without Any Dip on Your Business.

For a holistic and complete corporate recovery, the following phased approach in Turnaround Express methodology is used:

Phase 1: Surgery

To restructure the troubled organization to face the harsh new reality and improve cash flow.

Phase 2: Resuscitation

To revitalize the business to improve the sales revenues and profits.

Phase 3: Nursing

To rehabilitate a strong and healthy corporate immune system to sustain long-term growth.

Diagram 1 highlights the starting process of identifying the various viruses namely, competitive forces, incompetent management, change in consumer behaviour, economic recession etc that can attack a company. Then the proper treatment is administered through the execution of the three phases mentioned above to eliminate the various viruses.

Diagram 1: Complete Corporate Turnaround Plan

There is a close linkage between the human physical health and the corporate fiscal health. In a similar vein, there are strong parallels between the Western and Eastern medical treatments for the different stages of ailments or the different corporate turnaround and transformation phases. While Western medicine is concerned with the disease, traditional Chinese medicine (TCM) focuses on the state of health of the whole body.

Western style medical treatment is especially effective for cases of acute illness and trauma. Phase 1 (Surgery) and 2 (Resuscitation) of the corporate turnaround and transformation fall into these categories as they often involve life and death cases. Decisive, right dosages and timely administration of life-saving drugs and therapies can often minimize damage and expedite the recovery process. The emphasis is on step-by-step and systematic methodology, especially for critical surgical process as there is timing constraint. Similar to the use of drugs which are chemical in nature and can create negative side effects, there are negative side effects in the use of some Phase 1 (Surgery) processes such as in the case of a downsizing exercise (is like amputation) which can create staff morale problems.

On the other hand, the strength of the Oriental medicine lies in the treatment of chronic diseases, manifested largely as attacks on the corporate culture and immune system. The best way to fight diseases is to have a strong immune system. Here, to improve and strengthen the system, spontaneous cure and internal long-term balance are considered more important than fast and short-term measures. The efficacious effect of Phase 3 (Nursing) is the powerful driving force towards reinstatement of good health and optimal total body condition.

Both the hard and “brain” issues (cash flow improvement, revenue growth etc) addressed in Phase 1 (Surgery) and 2 (Resuscitation) as well as the soft and “heart” issues (staff morale, corporate culture etc) in Phase 3 (Nursing) are required for holistic corporate turnaround and transformation. Diagram 2 illustrates the salient issues in the implementation of the three phases.

Diagram 2: Parallels between Corporate Turnaround Phases and Western-Eastern Medical Treatments.