Turnaround Strategies

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Phone: 858-232-7273

Our interim or permanent CEO/COO initial task is to evaluate important business systems quickly so that those that may have contributed to a crisis can be changed. Typically, turnaround managers evaluate business systems through intuitive judgments; they have seen similar systems and know instinctively where and why problems may exist. Often,
decisions regarding changes in business systems that are made in the first few weeks are critical to the ultimate success
​of an engagement. 

Tara Jayde Capital Partners will immediately develop a Rapid Improvement Plan Program that will lead to sustainable success. The steps taken can be best illustrated in the following manner: 


GET EVERYONE INTO THE ACT
There can be a gold mine of bottled up improvement suggestions in people’s minds throughout the organization. To get at this, Tara Jayde Capital Partners will take the time to have one-on-one meetings with department heads, aimed at establishing relaxed and candid communication and surfacing correctible problems. 


EMPLOYEE SUGGESTION PROGRAM

A company wide suggestion program is another way to flush out productive ideas from the rank and file and, as a
​by-product, to build morale and confidence in new leadership. 


SPEND MONEY TO MAKE MONEY

Let it be known in all departments that the company is willing and eager to invest in new equipment and methods provided a return on that investment can be demonstrated. 


CLARIFY OBJECTIVES

Review the current plans that in effect, revising, discarding and building new plans that are attainable and will ultimately lead to long-term success and profitability. 


ELIMINATE ROADBLOCKS

In problem companies, cumbersome procedures tend to accumulate, becoming built-in obstacles to achievement and continuous improvement. The elimination of roadblocks can be one of the most productive measures for performance improvement by freeing up people to work at their jobs. 


GO AFTER REVENUE

​The development of a strong participative effort aimed at stimulating current sales volume is of the first importance. Communicating with employees, customers and suppliers and finding out how they view the company can often lead to
pay-off ideas for improving sales. Instituting a rigorous category review of each product in the company can determine where inventory investments need to be and or reduced to produce the desired revenue increases. 


EXPENSE REDUCTION PROGRAM

This is a far-reaching subject deserving a lot of attention and effort. Tara Jayde Capital Partners develops a stringent expense and budget review process that encompasses expense ratios, head count by department, duplicative efforts among divisions along with a cost –benefit relationship with the benefit derived from the analysis to manage costs and expenses throughout the company.


FINANCIAL MANAGEMENT

In a turnaround situation, the company must have financial statements that have the highest credibility based on conservative accounting practices. It is therefore wise to approach a turnaround with a firm policy of viewing the company’s situation realistically and conservatively, with accounting providing an unvarnished true picture of the company’s financial position. Preserving cash is vital to the success of a turnaround and true 52-week cash flow statements can enable management to see into the future and develop mitigation strategies before trouble arises.  


MANAGEMENT INFORMATION SYSTEMS

To speed up decision-making, a systemic review of all information technology systems must be undertaken to ensure that there is a fully integrated process among all business divisions. Information technology is a discipline that governs accountability for the structure and design, storage, movement, security, quality, delivery and usage of information required for management and business intelligence and decision purposes. In concert with external business partner, we design a data flow diagram to document data movement for an information management strategy that measures performance and delivers results. 


LEADERSHIP TEAM

It is vital that each member of management undergo a rigorous capability assessment to determine if the right people are on the bus, in the right seats and are capable of driving improvement and change throughout the turnaround process.
The organization must be aligned around the change needed to translate broad strategies into specific objectives, strategies and initiatives that leads to corporate improvement across all functions. Driving execution and monitoring performance against key operational and financial results enables leadership to hold people accountable for achieving their results. The items described above are a snapshot in the difficult methodology that must deployed with a high sense of urgency when assessing and prescribing the procedures for the turnaround.        

A Business Management Services Firm​
TARA JAYDE CAPITAL PARTNERS, LLC