Do Not Depend Solely on the Doctor in the House to do the Surgery

Many business leaders are good at starting a business or maintaining one that has already been well established. However, they are not good at fixing a seriously sick business. Avoid bankruptcy by hiring the turnaround experts.

They often do not have the experience, skills, temperament or willingness to do a proper turnaround. Sometimes, the business leader himself is the hindrance and obstacle to the entire turnaround process because of past encumbrances and prejudices. An outsider is quite often required to execute the turnaround.

Most of the time, a troubled company cannot be fixed solely from the within. The management may harbour too much prejudices, vested interests and baggage. If the medicine is too bitter, management may not have the guts to swallow it. The company needs somebody from the outside who is able to say "no" firmly when necessary. If the internal management is the cause of the internal woes, then the use of internal management for the turnaround is like using leeches to cure leukaemia. The condition of the patient will not improve and may deteriorate as time passes by.

An outsider brings some unfair advantages to the turnaround game. You have no emotional baggage tied to a new dream or a historically interesting but economically irrelevant service. Nor are you beholden to the big bosses. You can ask dump questions without looking dumb. One or two of those dumb questions will turn out to be brilliant ones.

Contrary to expectations, you will find you are accorded loyalty from employees. Other executives have to work hard to earn this devotion. These employees understand that you represent their last chance, and that you did not create the problem. They knew that the business was wobbling off course before the board or owners understood it. With the right demeanour and without rudeness, the employees will guide you immediately toward the major problems. Few will hold back if you listen hard. They know that if you really quiz them and they will lose their jobs anyway, it is less painful for them, since both of you have tried to salvage the situation.

Turnaround specialists coming from your specific industry are usually quite good. Their names are familiar in the industry and you can check on the reputation of these specialists. They also probably already know something about your company.

These specialists can make objective decisions that the ailing company's management cannot. Some take on full-time positions within the company as the Chief Executive. Others may be engaged as consultants with full authority and access to the company's accounts. They are there to cover the wound, conduct surgery or resuscitation. Once the job is done, they move on as these guys may not be the types suited to running a healthy company. Majority of executives are not suited for a turnaround as this unique situation demands extraordinary leadership. When these turnaround specialists take over the helm of the management, they swiftly proceed do the things that the Chief Executive ought to be doing before the company gets into trouble - restructuring.

When you are afflicted by cancer, see an oncologist and do not rely on your family doctor.

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