Value Creation
01. Options Exploration
Contextualize
Liquidity is the foundation of any transformational journey or a turnaround.
​
Forecast liquidity and plan cash accordingly and re-iterate the process of reviewing your cash forecast and monitoring with regular intervals. Reviewing the foundational liquidity should be an ongoing process.
​
The focus of all your business initiatives should translate into free cash flow.
02. Your Coalition
Build Strong Foundation
Create a sense of urgency, mobilize your organization and establish a powerful coalition with key stakeholders, which address all challenges proactively. Empower your A-Players to explore all initiatives which might have a positive impact on value creation and ensure that your problem-solving approach address challenges that go beyond symptoms.
​
Clearly articulate clearly your WHY. Plan accordingly. Bring into place a governance structure that continues to support and sharpen your vision in a re-iterative manner.
03. Transformational Journey
Strategize & Test
Your plan will have to balance the different priorities of different stakeholders. Often, the plan represents a difficult negotiation among these groups.
STEPS TO CONSIDER
Agree on the plan’s scope with the stakeholders who are controlling the process. They may set constraints — such as the level of investment or gearing that can be tolerated — or they may recognize certain parameters for the process, such as financial return.
​
Examine, evaluate and test hypotheses on how the company can be improved.
Build scenarios and select an option where combinations of hypotheses are built and compared against the scope. This way, you can find the best fit in terms of financial outcome, risk and timing.
04. DELIVER
Create Early Wins
Make sure that everyone is working as a team across the company.
​
Manage your plans, identify risks at an early stage and ensure that all teams are highly motivated.
You can start to see signs of an organization regaining its stability is beginning the turnaround toward improved efficiency, revenue profitability.
05. Realize Value
Reduce Ownership & Plan Exit
Continued progress requires the full engagement of the leadership team.
Evaluate sequence of events with rigour & discipline.
The quality of the foundation built in previous stages is critical to the success of the value realization strategy.
Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time or we’ll lose them.
Kevin Stirtz, author of More Loyal Customers