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Turnaround Consultant Discloses Free Change Management Tips Used By Turnaround Companies

By Dr Mark Yates

Republish: EasyPublish™ Published: 29Jan2010 Word count: 1120 Viewed: 529 time(s) Get Free Content For Your Site

It may sound clique, but the age old saying of, "if you keep doing what you have been doing, you'll keep getting what you have been getting" rings true in the middle of the current business economic downturn.

If you are looking to grow your business in times of uncertainty, then turnaround and management change should feature heavily on your radar screen.

The current economic downturn has led to a significant increase in the engagement of a turnaround specialist employed by turnaround companies & retained by company directors to assist them in leadership change management & change management implementation.

A turnaround consultant who understands these free change management tips can implement an effective turnaround strategy to power management firms into exponential & sustainable growth. Savvy business owners and directors are looking to turnaround companies to help them identify strategies for blasting through the financial tipping point and positioning their business in the long term profitable and sustainable sector.

Although a turnaround strategy is currently finding favour with business owners, it should not be considered as the Holy Grail for companies in trouble, except for when it is included in a 'bigger picture' marketing strategy.

Often when a turnaround consultant is engaged to produce a turnaround strategy or for change management implementation, it quickly becomes apparent that the managing director owner and the turnaround company have opposing views on where the real business problems lie.

Frequently business owners and managing directors oppose leadership change management because they view it as a personal assault on their leadership methodology.

In reality a turnaround specialist offers an outsiders perspective and can remain impartial to many of the personal issues surrounding the owner and his or her business. Turnaround companies and management firms should capitalise on this professional impartiality as it frequently lifts the fog from the business growth.

In many of the SME's I have delivered turnaround and change management services into, I have frequently sensed hostility and resistance to change. Most of this materialises from a fear of the unknown.

I have to work quickly to reassure most business owners that my presence is there to help the business grow and prosper in a long term sustainable fashion.

I always produce better results once the business owner understands that I am not a threat and they then buy into my turnaround strategy and/or management change plan.

Free Change Management Tips # 1 Finance

The current economic recession has changed the way banks and financial institutions consider investment in businesses. Numerous turnaround companies are reporting that many banks are now erecting barriers to restrict the number of business qualifying for bank finance.

Although many business owners cite cash flow as king, they are failing to ensure this is a primary consideration in their change management implementation.

Any turnaround company or turnaround specialist understands that cash flow now more than ever is a key to success. Any professional turnaround consultant planning a current turnaround strategy will need to work closely with the business owner's bank or external investors to ensure the business is not starved of capital.

Most change management firms recognise that the businesses that survive and thrive from 2010 onwards will be those who understand the absolute requirement of establishing positive cash flow.

Free Change Management Tips # 2 Turnaround Consultant

Although most business owners turn to turnaround companies for a bespoke turnaround strategy, several managing directors are bucking the trend by engaging a new breed of turnaround consultant's who operate as a freelance turnaround specialist.

Whereas a conventional turnaround company might offer a broad spectrum of services required for leadership change management and/or change management implementation, an individual Turnaround Consultant might just specialise in one area like management change or leadership change management.

Given that management change should only be considered if the end result means increased business growth it is critical to ensure your Turnaround Consultant is suitably qualified and can provide proof of his or her prior business growth success.

Free Change Management Tips # 3 Leadership Change Management

Many business owners are afraid to engage turnaround companies because they fear the first thing that will happen is that they will be dismissed from the business leadership role and ultimately will lose control of their business.

Although change management implementation may occasionally call for the replacement of a managing director or senior manager, it is not an absolute initial requirement.

Any turnaround consultant will need to get down and dirty in the business coal face before identifying any management change as part of any turnaround strategy.

Every individual turnaround specialist I know understands that leadership change management is often one of the area's most resisted by business owners and managing directors.

Free Change Management Tips # 4 Turnaround Strategy

One of the greatest business myths that needs dispelling is that a turnaround strategy can only be implemented for businesses in trouble.

Because a very high percentage of SME managing directors (97%) have never received any formalised business academic or management training, turnaround companies or an individual turnaround consultant are often engaged by management firms which have simply lost their direction.

Many of these management firms are not necessarily in financial trouble, but are just like a rudderless ship. Engaging a turnaround company or an individual turnaround specialist is often all that is required to pull the business back on track.

Before any turnaround consultant can look at management change, he or she has identify a clearly defined turnaround strategy.

Only when this strategy has been critically analysed can the turnaround company look towards the next areas of leadership change management and change management implementation.

Free Change Management Tips # 5 Change Management Implementation

Conduct rigorous due diligence before appointing any turnaround companies or an individual turnaround consultant or turnaround specialist.

Fortunately the turnaround and change management industry is quite incestuous, and every one in the know knows who the major proven success specialists are. Word of mouth recommendation is the best asset in your due diligence phase.

Any turnaround company is only as good as their turnaround consultant, so ensure that the consultant assigned to your company has a personal proven history of achieving prior success from their own change management implementation.

Look for clues that the specialist's previous turnaround strategy or strategies have been structured along the lines of long term profitable and sustainable growth.

Try not to get hung up on any perceived notions of management change or leadership change management. Change management implementation often produces further resistance from business owners and long term workers. We are human beings after all, and as such we are creatures of habit, which by definition means we don't like change.

However in a business context, turnaround and change management solutions offer a very real opportunity for exponential business growth and profitable expansion.

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