Turnaround strategies refer to a standard or customized measures intended to assist in a change of direction to rescue a given organization. Such measures could include a wide range of actions, including re-evaluation and composition of the new strategy in all divisions and units, including human resources, budgeting, consolidation, vendor and customer contracts, and seeking external funding.
Nevertheless, as the concept implies, the given organization requires 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 individually.
The first important question, of course, is the evaluation of the organization’s overall efforts. It has to be determined if the given organization is worth reviving. Such determinations can be both objective and subject. Objectivity can be achieved by examining past performance and profitability, market penetration, competition, industry health, public relations, and the geographic location’s local, cultural, social, and economic well-being.
The most obvious first step would be to bring in a neutral third party to evaluate the overall organizational dynamics and interactions that may determine the most viable actions. The deployment of a third party may appear too premature at first; the simple fact that an organization encountering difficulties should be financially solvent may create doubt about this step. However, considering that a neutral third party may 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 a third party will certainly create an environment that enables all stakeholders to have confidence in the final findings and recommendations and the respective neutrality of those findings. Implementing those recommendations creates additional issues, such as effectiveness and efficiency, as well as accuracy and adjustments during the implementation period.
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