Recognize the Disruption
The early stages can be like the emergency room in a
hospital. You need to quickly establish what the life-threatening injuries are and what’s more of a flesh
wound. Create a fact base. How bad are things really?
Is this a business that is running out of cash, or is it a
business where the rules of the game are changing and
the company needs to transform? I believe there are four
types of extraordinary disruption that affect a company
and its ability to react, whether they are planned or
unplanned, or from an internal or external source:
transformational, reputational, hostile and creative.
Many issues may not be immediately apparent.
Come to Grips with the Key Issues
Once you have established that the company can stand
on its own two feet, it is time to investigate further to
resolve the root source of the issues. Across the globe,
change and disruption is everywhere. So companies,
even if they are not in the emergency room stage, need
to look to new skills and experience to transform and
stay relevant. Spend time in the business, use your eyes
and ears effectively, engage employees and make them
feel comfortable enough to express their concerns. A
company can become blinkered when the business has
been successful, so look externally to provide insights.
Where does the company need to focus its efforts?
There’s never a better time to tackle the mistakes of
your predecessors than right at the start. Don’t forget
about the value of symbols and symbolic actions. What
Corporate transformations have been around since the days of the East India Company. But he speed at which business is conducted today
—with economic headwinds and disruption affecting
companies around the world— means that executives
must manage day-to-day operations while keeping
one eye on projects that will transform the business to
ensure it stays relevant in the future. Some of the skills
learned through restructuring have had an impact on
how transformation is being approached in this fast-
To be successful in these conditions, companies need
to be agile, move swiftly and execute highly detailed
plans. Such perspectives, skills and capabilities are often
found in restructurings — the corporate equivalent of the
hospital emergency room. Companies that need to transform or turnaround in some way would do well to import
an experienced leader. Below are eight tips to guide a
company through a successful restructuring.
Corporate Transformation is the New Normal:
But Are You Going About it in the Right Way?
BY MALCOLM MCKENZIE
In the early stages, corporate turnarounds can resemble a hospital emergency room, according to
Malcolm McKenzie. Performing triage may be the only way to save the patient. He offers eight practical
tips to execute a successful turnaround.
So companies, even if they are not in the emergency room stage,
need to look to new skills and experience to transform and stay
relevant. Spend time in the business, use your eyes and ears
effectively, engage employees and make them feel comfortable
enough to express their concerns.
Alvarez and Marsal UK