do you need your business to be turned around?

Copyright © 2009 MA Consulting International Ltd

Management of Turn Around Projects


What is Turn Around?

Turn Around is about:

– Taking a declining or underperforming business– Keeping it Alive by introducing sense of urgency– Making it Viable by adding value

Turn around is not:

– Just about finance– Just about advising

It’s about delivering


We take interim roles inside a business : – from Strategic Marketing, Supply Chain management ,..., to CEO – Our fees are included in the plan & are mainly based on performance– Our remuneration is very flexible, using milestones, performance

bonuses, and potentially, equity stakes as part of a package

Relationships and Trust are Key

– We have strong experience of building relationships with, Investors, Financial institutions, and Banks to find cash immediately

– We work with Creditors to get their support and build the longer term– As we are not emotionally involved we can see issues clearly, build

and implement practical action plans, make tough decisions– We have strong experience working with Board Members / Funders– We only succeed if the business succeed

How do we do it?


Turn Around Process1. Diagnostic2. Project Planning3. Setting Business Strategy4. Gaining Buy In5. Communicating 6. Analysis7. Setting Sales Goals and Cost

Cutting Plans

8. Raising and Monitoring Cash9. Looking After Staff10. Monitoring Process/Progress11. Improving Business Techniques12. Coaching all the Way Through

On going 9 to 18 Months

1 to 4 Months


Full report on the current situation and recommendations:

– Overview of Business external environment– Analysis of main products / services offering, and profitability– Growth expectations– Market penetration and marketing strategies effectiveness– Analysis of the fixed costs structure– Review of the most critical issues the business is facing and strategies to

overcome those issues– Understanding the business culture– Benchmark of the business in 11 critical Business areas : Service, Sales,

Marketing, Team work, Strategic thinking, Cash Flow, Productivity, Profitability, Work vs. Personal Life Balance, Leadership, Manufacturing.

– Recommendations on how to improve processes, profitability, and cash flow

Diagnostic Output


Project planningDefine/Identify:

– Who is the sponsor of the project at board level– The core team: kept to a manageable size, and allocated clear

responsibility to avoid duplication– Skills gap and how this will be overcome– Reporting procedures– Organisation model changes required– Who will make the project a success or break it– A communication plan– An implementation time line with milestones and success

factors


Business Strategy

1 – I dentify &

Create the Vision

2 – Analyse the Vision

3 – I dentify High-Level Strategies

4 – Alignment With Other Projects

5 – Deployment

6 – I mplementation & Review

•Creating the issue/ opportunity (vision) question•Create the •Affinity Diagram

I ntro & Context •Background to VTR•Positioning in MA Process

Getting Started•Preparation•Scheduling•The Team

•Planning•Contingency•Reviewing

•Developing 2nd Level Strategies•Achieving Capacity & Capability•I dentifying Tasks/ Tactics•Documentation & Communication

•I dentify Cause & Effect•I dentify Strategic Focus (Breakthrough Objectives)

•I dentifying 1st Level Strategies•Engagement Processes Overview•I dentify Sequence, Timing, Ownership & Effort•Critical Path Analysis

•The Three D’s•Delete•Defer•Delegate

Outro•Structured Review •Wrap-up•Close

I nter-Relationship Diagram

AffinityDiagram

TreeDiagrams

MA Consulting International – Vision To Reality & Planning Process

Plan Do

CheckAct

TreeDiagrams

ProcessDecisionProgrammeCharts

ArrowDiagrams

VTR

GANTT Charts

Planning


Business Strategy

MA Consulting VTR & Planning Process

Plan Do

CheckAct

Plan Do

CheckAct

Identify the Organization‘s Current Situation

Develop & Analyze the Vision

Deployment of the Plan

Identify High-Level Strategies

Identify BreakthroughObjective (s)

Improve Plan & Create Next Years Plan

Corrective Action

Alignment WithOther Projects

Annual Review

Review the Plan

Implement the Plan

VTRWhat do we need to do?

How should we do it?

How are we doing?


Gain Buy In & Communicate

– Build shareholder value

– Get approval from the board

– Explain the issues to senior managers for understanding

– System customisation

– Evaluation of new work load for line managers

– Communicate Benefits to Managers, Employees, Legislative bodies (work councils, equal opportunities...)


Analysis & Goal settingDetailed Analysis of:

– Industry Structure – Industry Forces (External)– Existing Customers’ turn over & growth potential– Products / services’ profitability & growth potential– Fixed costs

Goal settings:

By department and by owner Definition of: – Objectives– Measures– Targets– Initiatives– Resources required


Raising & Monitoring CashInternal Focus

– Prepare a business plan and a short and honest description of the business situation

– Present business situation & plans to funders & get their buy in– Establish strong relationships with funders & seek for their support– Prepare for each business units short , medium, and long term cash

forecasts– Squeeze working capital

External Focus– Present business situation & plans to Banks & seek for their support– Present business situation & plans to Creditors & seek for their

support– Look for potential new investors– Spin off loss makers businesses– Sell unused or unusable assets


We create a culture, in which employees are valued, challenged, focus their attention and efforts towards learning, explore their potential, fulfil their ambitions, achieve success and are adequately rewarded

ALWAYS ACT ON HIGH PRINCIPLE

INDIVIDUAL DIGNITY ENTITLEMENT

Real JobsPerformance CriteriaTrainingCareer PlanFeedbackBias Free

IMPLEMENTATION SUPREMACY

Constant Respect For PeopleUncompromising Integrity

Key GoalsWhat They Must Accomplish

Key InitiativesHow They Will Do It

RENEWAL

People EnhancementBoldnessCounter Intuitive ThinkingCreativityCreate CustomersOverwhelm CompetitionLegacy

Looking After Staff


Monitoring Process & Progress

Performance Leadership programme

Performance Leadership reinforces the belief that We should measure results AND behaviours / skills

If WHO People Are is important

If WHAT PeopleAchieve is important

If HOW PeopleAchieve is important

Measure personalitytraits ( does not predict success)

Measure results(Bonus schemes, RONA, individual and team goals)

Measure behavioursand skills (Individual profilebehaviours)

Performance = WHAT + HOW


Performance planningMutual understanding about:

– Team/ individual business goals– Expected individual behaviours– Assistance and resources

needed– Job match/ action plans/

possible reassignments– Sources of performance input

Progress Check pointsDiscussion of:

– Progress on individual / team business goals

– Actual behaviour compared to expectations

– Assistance and resources needed– Job match/ action plans / possible

reassignments

Performance SummaryDiscussion of:

– Performance on individual / team business goals

– Actual behaviour compared to expectations

– Job match/ action plans / possible reassignments

– Future skills needed for current job

Input to – Training– Staffing– Compensation– Career Planning

Improving Business techniquesProcess overview


MA and Board:Define Lean 6 Sigma strategy,

Select 1st project, Define team selection criterion

1 2 3 4

MA Consulting provide Continuous Coaching and SupportUniversity of Newport provide Students for Data Collection

5 6

Workshop 1

Understanding the Problem

Workshop 2

The process of Eliminating

Waste

Workshop 3

Empowering and

Leadership

Workshop 4

The Challenge of

Standardization

Workshop 5

The Continuous

Improvement

Workshop 6

The Golden Threads of

the Journey

Newport University & MA Specialist Pool provide a) Knowledge, experience, tools, models and assistance as required facilitating workshops b) Practical support/advice to meet particular individual and/or organizational needs

Lean 6 Sigma Journey

Improving Business techniques