Assessment of current problems
Analyze the current situation and develop a strategic plan
Emergency action plan
Restructuring the business
Returning to normal
Root cause analysis is often adopted to assess the prevailing problems. This excercise allows anyone to know the extent of decay.
Be sure that the firm has a possibility of surviving before you make any significant adjustments. Make a preliminary action plan and decide on acceptable strategies.
Search for viable core businesses, sufficient bridge financing, and accessible organizational resources
The strategy often calls for activities in the areas of human resources, finances, marketing, and operations to consolidate debts, increase working capital, lower expenses, enhance budgeting procedures, eliminate unprofitable product lines, and expedite high-potential goods.
Positive operating cash flow must be generated, and sufficient money must be raised to carry out the turnaround plans.
To put the firm in a position for quick progress, prepare cash forecasts, analyse assets and debts, monitor profits, and examine other important financial functions.
The firm should start to demonstrate indicators of profitability, return on investments, and increasing economic value-added throughout the last stage of the turnaround strategy process.