Turnaround strategies refer to standard or customized measures that are intended to assist in change of direction in order to rescue a given organization. Such measures could include a wide range of actions including re-evaluation and composition of new strategy in every and all divisions and units including human resources, budgeting, consolidation, vendor and customer contracts, as well as seeking external funding .
Nevertheless, as the concept implies, the given organization is in need of improvement. Yet it is hard to generalize what particular measure can and will be the solution. Further, it is unlikely that one single measure or solution will rectify the current situation. Hence, each given situation and organization can and should be examined on the individual cases.
The first important question of course is the evaluation of overall efforts for the particular organization. It has to be determined if the given organization is worth reviving. Such determinations can be both objective and subject. The objectivity can be achieved by examining past performance and profitability, market penetration, competition, industry health, public relations , as well as local, cultural, social and economic well being of the geographic location.
The most obvious first step would be to bring in a neutral third party that can evaluate the overall organizational dynamics and interactions that may result in determining the most viable actions. The deployment of third party may appear too premature at first; the simple fact that an organization which is encountering difficulties should be financially solvent may create doubt about this step. However, considering that a neutral third party may be able to assist in unbiased and impartial general and specific diagnostics maybe even more important than short term financial solvency that can be countered by external funding.
The deployment of third party will certainly create an environment that enables all stakeholders to have confident in final findings and recommendations and the respective neutrality of those findings. The implementation of those recommendations certainly create additional issues such as effectiveness and efficiency as well as accuracy and adjustments during the implementation period.
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