Turnaround Strategies: A Comprehensive Guide to Corporate Renewal

When companies or departments are underperforming or suffering losses, restructuring strategies can be used to turn things around. Learn about mergers, acquisitions, refinancing, staff cuts and more.

Turnaround Strategies: A Comprehensive Guide to Corporate Renewal

When a company or department is underperforming or suffering losses, restructuring strategies can be used to turn things around. Restructuring strategies involve making fundamental adjustments to the strategy or processes used, and can include mergers, acquisitions, management buy-outs, refinancing, management change, staff cuts, and reorganization. Restructuring management is a process dedicated to corporate renewal that uses analysis and planning to save companies in trouble and return them to solvency. The concept of turnaround strategies is also applicable to the economy of a country or region after a period of stagnation or recession.

Recovery strategies are a series of measures that companies use to recover from a period of declining performance. Companies that rely solely on cost reduction as a recovery strategy run the risk of experiencing greater staff turnover due to decreased employee morale. Therefore, renewal management is closely related to change management, transformation management, and post-merger integration management. Strategists advocate the use of a proactive, top-down management style for successful restructuring strategies.

As a result, a new senior management team can allow the company to focus on new strategies to lead the recovery. The overall measure of the success of the restructuring strategy is the increase in the company's net income. If a public organization is in a recovery situation, it is subject to performance dimensions (for example, the period of decline and recovery in performance is called recovery and is measured based on net income). The usefulness of reducing assets as a recovery strategy depends on the company's ability to generate cash flow.

In this case, the selection must be done quickly, as it may not be possible to take a second step after a new or existing poor performance.