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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.

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GREAT QUESTIONS

  • Is there a real crisis? Can we stabilize the situation?

  • Is a turnaround or refinancing possible?

  • What are the best options at hand?

  • What are the real profitability gaps?
     

 

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. 

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GREAT QUESTIONS

  • What are the key value drivers that will define the transformation strategy? 

  • Are managers fully committed to the plan? 

  • What is my run rate financial performance? 

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.

 
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GREAT QUESTIONS

  • How can I get control of cash and liquidity?

  • What governance do I need to stabilize the cash flow? 

  • How can I get better control of my cash and costs? 

  • What progress reports do I need to have? 

GREAT QUESTIONS

  • What should I include in a robust implementation plan? 

  • What is the best way to drive accountability? 

  • How to embed impact of improvements into the plan?

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. 

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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.

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GREAT QUESTIONS

  • How can I determine the best source of new capital? 

  • How can I exit non-core operations? 

  • How can I improve the performance of my core business?

  • Should I consider an IPO? 

  • How can I accelerate value realization? 

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

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