How to manage a turnaround plan?
Piloting a turnaround plan is a delicate and perilous exercise. This responsibility should be entrusted to a seasoned specialist in corporate restructuring . This expert must be clear-sighted, determined and organized. An interim manager offers the ideal profile.
The company and the turnaround plan
A company evolves in a competitive and changing market. This environment offers many opportunities and also carries serious risks. Decisions made by leaders and implemented by middle managers affect business performance.
An economic or operational error can lead the company into a dangerous situation. Once this stage is reached, it is necessary to put in place a turnaround plan .
Prepare a turnaround plan
The implementation of a turnaround plan follows a specific procedure. The first step is to establish a diagnosis. It is then necessary to identify all the strengths and weaknesses of the company , but also the opportunities and threats of the sector of activity.
Cash is the first indicator of the state of the company. Inputs and outputs are analyzed in detail. The company’s organization is also the subject of an in-depth study.
Validate a turnaround plan
To carry out this exercise, leaders must surround themselves with specialists. The skills required are specific. You have to know how to project yourself in the long term while managing the day-to-day. The decisions that will be made must be judicious and conform to legal standards.
Interim management offers a perfect solution. Professionals working in this sector are specialists in corporate restructuring. They establish this diagnosis quickly and propose the corresponding action plans.
Having then all the information, the managers can validate the turnaround plan.
Manage the turnaround plan
The transition manager will steer the turnaround plan by following essential indicators.
It implements effective mechanisms to improve cash flow . He makes sure to collect the money due and he secures it. There is a range of tools to achieve this: discounting, factoring , Dailly, credit insurance… It also engages in discussions with suppliers and banks in order to renegotiate the debt.
The interim manager is fully conversant with the latest provisions on companies in difficulty.
Corporate restructuring involves painful decisions . Reducing operating costs and therefore the payroll is a tricky subject. The interim manager must take into account the improvement in cash flow, but also the needs of the company in the medium term.
Before dismissing employees with valuable know-how, priority should be given to temporary measures such as the signing of flexi-security agreements, employment competitiveness or recourse to partial unemployment. The main thing is not to mortgage the future and to be able to restart the activity when the time comes.
The mission of the interim manager
Indeed, a turnaround plan allows the company to identify business opportunities through marketing, innovation or the conquest of new markets.
The interim manager specializing in corporate restructuring follows a turnaround plan whose progress is measured regularly and by consulting essential indicators. The objective may also be to prepare the business for sale.
The mission lasts between 6 and 18 months , depending on the complexity of the situation. At the end of this period, the objective is achieved. The business is sustainable. The new procedures and the establishment of control points allow the management team to take over the reins of its company.