Every business faces constant challenges, from changing global economic situations to supply-chain issues and evolving customer preferences. Both internal and external circumstances can strain a business to the brink of failure. In order to come back from the edge and get back on stable, solid ground again, many organizations look to turnaround consulting.
What Is Turnaround Consulting?
A turnaround consultant assists a company in evaluating and analyzing the factors that are threatening its survival and devising and implementing solutions. This can be done through short-term, project-based consulting or by stepping into a role as an interim chief executive, replacing the current management team or leader while the company undergoes a reorganization or restructuring.
Bringing in a consultant can be invaluable in a crisis. A turnaround consultant offers a fresh perspective from an outside view, without the burden of being too attached to or sentimental about practices or methods that may not be best for the organization. A consultant can help you reflect on the causes of your current difficulties and, in addition to proposing solutions, can help develop prophylactic measures to prevent you from finding yourself in a similar position in the future. Using proven techniques and experience, a consultant offers crisis-management expertise that your existing team may not have or be applying optimally.
Why Consider Short Term Turnaround Consulting?
Large-scale factors like recession, industry slowdown, economic downturn, regulatory changes, or other social and macroeconomic changes can wreak havoc on businesses. If your business is struggling to succeed or stay afloat because of such factors, it can be helpful to bring in a turnaround consultant on a short-term basis. They will get to know your business inside and out, bringing with them knowledge and perspective about your industry in general and the economy as a whole. After a complete, detailed review and analysis of your company’s operations, including reviewing books, interviewing management and personnel, and discussing big-picture goals and strategy, a consultant will recommend specific solutions and outline an overall plan. A short-term consultant may participate in implementing these action items (like firing key personnel, laying off employees, consolidating production, closing locations, etc.), or may simply make recommendations and depart, depending on your preference.
When to Look at Hiring a Turnaround CEO
If your business crisis is a result of poor internal management or decision making, it may make sense to bring in a turnaround consultant to serve as a temporary replacement CEO. While this is significantly more disruptive, this itself can be one of the biggest advantages—shaking up the status quo and figuring out new ways of doing things.
A turnaround consultant CEO can make difficult decisions without sentimentality or fear of retribution. This impartiality allows him or her to take actions that may be unpopular but necessary for the survival—and hopefully, improvement—of the company. He or she can serve as a company’s leader for months or years as the board of directors or other managing shareholders develop and implement a plan to successfully restructure of the business. The consultant can contribute experience, outside perspective, and knowledge while helping keep the wheel steady during the storm. When the seas calm, a turnaround CEO may also be able to help search for and install a new, permanent leader for the business going forward.
Considering Turnaround Consulting? Contact Cornerstone.
If your business is struggling with stormy seas, turnaround consulting may help steer your ship back into the currents of success. Cornerstone Consulting Organization’s executive and senior business management consultants have a wide variety of areas of expertise and technical specialties. Whether you’re looking for short- or long-term turnaround counseling engagements, our skilled consultants offer ROI consulting, operations consulting, and specialized expert consulting services. We will help your business survive—and thrive. Contact us today to learn more about our team’s impressive qualifications and find the consultant that’s right for your needs.