One of my current projects is to help a client turn a non-profit making company into a profitable one.  As easy as many articles make it out to be, it is NOT.

One of the most difficult challenges in any significant disruption in business is the acceptance of current management that what they have been doing, is not working.  No one wants to admit failure, however, this is an important step.  As an adviser, we can only challenge thinking and suggest a different approach.  The implementation of any strategic change relies on management.

There are many turnaround strategists that will, no doubt, agree with me in this case and as frustrating as it is for the company, it is the same for the strategist.

Most business owners and Boards of Directors are acutely aware of the downturn in the economy locally and in some cases globally.  This has and is affecting profitability and volume.  If you business has not gone through this, my feeling is it is only a matter of time.  Therefore some advice to owners and boards that are going through or thinking about going through a strategic turnaround:

• Engage with the right Adviser, someone you trust and can work with.  Someone you will listen too.  Look for someone with a network of advice.
• Accept that your current strategy is not working.
• Engage with your staff, let them know what is happening and that things are going to change.
• Surround yourself with a management team that wants to help you get your business back on track
• Accept that this is not a quick process and may take some years to achieve the desired results.
• Buy into the final strategy.
• Put in place monitoring procedures to identify early if elements of the strategy are working or not.  If not working, change them as soon as possible.
• Listen to your staff.  They are on the coal face and will tell you when things are or are not working.
• Most importantly, if you don’t see that the strategy will work, the best thing for your pocket and those of your investors may be to sell or liquidate.  This will be a tough choice as no one wants to admit failure.