adminShelter Chieza Change Management
Human beings need at most four to five hours of sleep everyday. Sleep is meant to re-energise you. Experts contend that it is not the amount of sleep that matters on a day-to-day basis, it is the quality of sleep. Individuals need sleep to perform at their optimum. It’s pretty much the same in business. When companies experience a decline or exhibit symptoms of decline, it might be time to go dormant for a while, instituting a turnaround process.
The rate at which most firms are declining in Zimbabwe requires most companies to take a moment to reflect and regroup.
This is the time when the momentum is down. This, according to turnaround-sa.com, is the time that such businesses need to be stabilised to ensure their short-term future.
According to the website, some companies have tried to initiate a narrow turnaround approach but it simply does not work.
It is almost like going to the doctor, you are given a prescription with all types of medicine but you only take half of it.
Don’t attempt to address key issues in sequence, do it simultaneously. You could first deal with the hard, then soft issues.
The hard issues involve tackling revenue enhancement and cost reduction issues. Try to look at areas where you can launch strategic and operational initiatives.
Addressing both short- and long-term priorities should be followed with emergency management.
It allows management to secure the short-term future of the business through stabilising the distressed company.
Management should also try to lay the foundation for funding and fixing the distressed company then proceed to perform a restructuring exercise which allows for the implementation of the turnaround plan.
At this time, management can tackle issues such as shuffling the leadership. Managers should, however, take time to address the company’s financial status, which will give them time to look at their recovery measures.
At this stage they have to manage the business until it recovers. This is the time to sit with staff and start emphasising on profits in addition to the earlier emphasis on cash flow.
It is also the time to sit with the operations manager and drill the importance of operational efficiency and it is the opportune moment to rebuild the organisation.
Typically, this is where the turnaround leader passes on the baton to someone new to head the stabilised and restructured company as it returns to normal.
The turnaround is complete when the company has returned to normal on a sustainable basis. It is possible to get companies back on their feet.
The five stages of sleep that human beings go through at night are meant to make them more effective.
There is no way an individuals can have the same sleeping experience, it changes from sleep to deep sleep to rapid eye movement sleep. All is meant to increase effectiveness.
Till next week, may God richly bless you!!
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