DERBY

1
Company TurnaroundsThe Business Human
Implications
DERBY MANAGEMENT CONSULTANTS
2
The Business Human Implications

• The Signals
• Business Signals
• Financial
• Cash Inventory
• AR AP Banks
• Statements Ratios
• Sales
• Booking Trends Returns
• Backlog Trends Book to Bill
• Loss of major customers Market share
• Legal
• Increase in legal costs lawsuits

DERBY MANAGEMENT CONSULTANTS
3
The Business Human Implications

• The Signals
• People Signals
• Customer communication slows down
• Internal communication on the business stops
• Lack of open communication by senior management
• Lots of talk about The Financing or banks
• Rumors take over
• Over-intensive focus on the numbers
• Closed doors
• Low morale, lack of pride, dispirited people

DERBY MANAGEMENT CONSULTANTS
4
The Business Human Implications

• Turnaround Actions
• Yesterday...
• The first focus was layoffs
• The second focus was more layoffs
• Expense reductions as line items
• Reducing expenses and not costs
• Reducing expenses and not structure

DERBY MANAGEMENT CONSULTANTS
5
The Business Human Implications

• Turnaround Results
• Yesterday...
• The Almost Successes
• More attempts to do everything better
• Turnarounds which never do
• The same activities occur just at an increased
  pace

DERBY MANAGEMENT CONSULTANTS
6
The Business Human Implications

• Whats different Today ?
• Focus first on the core of the business
• Force the answers What do we do absolutely
  best?
• Focus second on customer needs
• Focus third on the management
• Define a process which balances plans and
  strategies
• Focus on rethinking not improving internal
  processes
• Promote radical, not incremental change
• Force immediate, but thoroughly planned tactical
  plans
• No longer We know, but Lets ask

DERBY MANAGEMENT CONSULTANTS
7
The Business Human Implications

• Derbys Ten Rules
• Figure out exactly where you are in the cycles
• Manage the Cash daily for a while
• Understand the true core business
• Immediately analyze primary processes and costs
• Involve all management completely in the planning
• Demonstrate dynamic and visible leadership
• Make the tough decisions
• Execute the changes and do not look back
• Push yourself and your managers to measure
• Create Absolute Management Focus

DERBY MANAGEMENT CONSULTANTS
8
The Business Human Implications

• Focus Do one thing very well !
• customers
• strategic model
• Balance
• operational management
• turnaround process
• strategic process
• people

DERBY MANAGEMENT CONSULTANTS
9
The Business Human Implications

• Whats the Strategic Process
• Push the envelope
• understanding and agreeing on the vision
• understanding and agreeing on the primary
  strategies
• creating unified tactical plans
• to change
• to re-engineer fundamental processes