What is Pre-Turnaround?

“The great thing in the world is not so much where we stand, as in what direction we are moving.” Oliver Wendell Holmes

Wells Fargo’s in depth study of business turnarounds concluded “all turnaround situations could have been avoided if timely corrective action had been taken.”

 

What is pre-turnaround?

 

Pre-turnaround is an integrated comprehensive action ensuring internal consistency, by reshaping strategy, financial aspects, organization and operations to transform a business to realize its strategy and vision and avert turnaround status.
A pre-turnaround program is company-wide and touches every aspect of the company.

Contrary to common misconceptions, pre-turnaround does not always involve employee and expense cuts. If pre-turnaround initiatives are implemented early enough objectives can often be attained through restructure and re-direction to increase revenues and efficiencies.

 

Pre-turnaround not only focuses on what to change, it also focuses on employee buy-in and

ownership of the pre-turnaround strategy and objectives.

Early Warning Signs You Need a Pre-Turnaround Strategy

 

Early warning signs indicate the need for companies to transform themselves and reverse current or potential underperformance followed by implementing a strategy to achieve and surpass industry performance standards. Some early warning signs are:

• Significant changes in economic conditions
• Recession
• Deteriorating financial performance
• Slow Growth
• High Costs
• Unproductive Assets
• Lack of competitiveness
• Uncertain strategic direction
• Inability to meet strategic and financial objectives
• Need for change

Click here to request a review of your situation and recommendations to improve your financial performance.