· 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.