Week 2

Question 1

Why turnaround plan

Answer 1

Focus, compass, performance measurement (it gives quantative and qualitative goals) & conviction and give account (helps in negotiations with financiers and stakeholders)

Question 2

Tien elementen uit een turnaround plan

Answer 2

• Company profile and causes of decline
• Analysis of external environment
• Turnaround vision (New ambitions of the company, on services and on culture, unique selling points)
• Turnaround strategy (Detailed presentation of retrenchment strategy, recovery strategy and cultural change)
• Operational analysis (key problems in each core business process)
• Operational action plan (Detailed inititatives that adress weakness and opportunity identified in the operational analysis.)

-Financial projectons (Scenario analysis, how turnaroudn will lead to renewed profitability)

• Time scheme
• Risk and financial restructuring analysis (external and internal risks during turnaround)
• Executive summary

Question 3

Testing the turnaround plan

Answer 3

• Are strategies consistent with the external competetive environment? (Competitive environment in the furure)
• Is strategy internally consistent? (In het intern consistent, komen de strategies overeen met de corporate doelen)
• Does the strategy have an appropriate view on available resources? (No gap between the strategy and company’s critical resources: Money, human capital and physical facilities)
• Does the strategy involve an acceptable degree of risk?

Magic question: Why should a customer buy from you

Question 4

Raamwerk turnaround

Answer 4

Key objectives:
- Take conrol
- Rebuild stakeholder support
- Fix the business
- Resolve future funding

What

Seven key ingredients:
1. Crisis stabilisation
Crisis management
Quick-scan analysis and decision making
2. Leadership
Selection of turnaround team
Project management of the turnaround

3. Stakeholder support
   Stakeholder management
4. Strategic focus
   Diagnostic view
   Develop business turnaround plan
   Implement business turnaround plan
   5.Organisational change
5. Critical process improvements
6. Financial restructuring
   Prepare and negotiate financial plan