Background

Organizations were traditionally structured for stable market conditions and steady growth. As technological change accelerates, some organizations run into difficulty adapting to the new business environment in their structured format, calling for a survival strategy.

Turnaround Strategy/Action Plan Stages

I Cash Management

Develop reliable information about the company’s cash position;
Impose stringent controls, squeeze cash out of accounts receivable, etc.
Prepare worst case/best case budgets, develop contingency plans
 
II Information Development

Develop information bridges directly with stakeholders
 
III Organization Structure

Review organization structure, flatten organization chart
 
IV Strategy Development
Crisis Stage: Develop an action plan
Post-Crisis Stage: Develop a strategic plan
 
V Reorganization Stage

Develop new organization charts
 
VI Post-Reorganization

Function as a leader rather than a follower