·
The turnaround process begins with a change in management and/or approach.
·
Next, viability is
assessed. Cash liquidity and the
severity of the situation must be quickly determined. One or more viable core segments and/or products must be
identified along with the problems that have the highest turnaround leverage.
·
The organization’s capacity to affect a turnaround and the
probability of obtaining sufficient bridge
financing must be evaluated.
Speed and fast action are crucial. Fundamental
information combined with good “guts”, and intuitive judgments based on
experience far outweigh a refined, lengthy analysis in a turnaround or crisis
situation. Getting into the bowels of the operation, identifying the people who
know the facts and listening is faster and much more effective.