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Businesses that come under critical pressure from loosing revenue and market foothold are frequently forced to develop and implement turnaround strategies - doing so in selected timescales and under intense pressure. Urconnect India help’s its clients who are faced by challenges such as:
- Destroying value for the business and not meeting target returns
- Not meeting the cost of capital so that capital could be more effectively deployed elsewhere
- Company under performing against key competitors
In response to such challenges, Urconnect India’s experience suggests that Top management/CEOs should implement a structured and focused turn-around approach.
- Develop the turnaround strategy objectives, define success and identify the key problems areas. Urconnect India help CEOs to develop a strategy based on a sound analytical understanding about, which activities/attributes of the business has value creation potential for current and future business need. This potential is based on both inherent market attractiveness and of competitive strength.
- Focus on result oriented activities that eliminate value destruction. It is often said “there is no such thing as a bad strategy; it is just the execution that is flawed”. Though this statement is debate-able, but we have seen many examples where implementation is poorly managed. The success of this step relies on the heartless execution of a portfolio of projects, all aimed at the elimination of value destroying activities. The nature of the projects could include separating under-performing businesses, implementing a new pricing strategy, selling under-utilized assets, trimming unprofitable product lines and reducing overhead cost.
- Stabilize and nurture the value creating businesses. This phase is most crucial for most CEO’s as it usually requires a distinct style to handle situation and it must be different from the earlier phases, involving cultivation of management talent to guide value-creating businesses to the next stages of their development. In parallel, consistent and visible management against values driving KPIs must surround turnaround strategy.
Urconnect India help companies take each of these steps by bringing a combination of analytical accuracy, broad industry experience, hands-on senior management support, project management and strategic insight.
For more information on How our turnaround strategic solutions can help you, please call us or click here to send us a message.
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