The challenges of developing a comprehensive turnaround strategy are complex and time-consuming. Assistance from a third party is essential to achieve positive results. Simmons & White turnaround consultants address operational and strategic decisions and the needs of company stakeholders to restore the company to profitability. The result can be an efficient well-run business positioned to compete profitably.

A turnaround leader is typically brought in by the board or the bank with the authority to take whatever action is necessary to fix a company’s problems. If the turnaround expert has less than a full mandate, the effort required to obtain buy-in from key constituencies can be great. Stakeholders, including lenders, suppliers, shareholders, employees, or management, will try to protect their interest if they feel those interests are threatened.

To positively influence stakeholders and key constituencies, the turnaround leader must build consensus and support from within the organization. Frequent and consistent are essential to setting the tone. Identification of employee leaders to communicate specific initiatives can greatly expedite the execution of the turnaround plan.

Educating stakeholders on why the plan’s initiatives are critical to the success of the restructuring process. The turnaround professional must play multiple roles, from educator (what factors limit the company’s short-term options) to motivator (encouraging employees) to counselor.

The turnaround leader must define realistic and achievable goals and communicate them to constituencies. Forecasting cash flow and operating results are among the most important aspects of the turnaround leader’s functions. Meeting these goals is a form of communication that builds trust and goodwill. Missing forecasts destroys credibility and eliminates a company’s ability to favorably influence results.

Effective and open communication with stakeholders is critical to success. The result can be an efficient well-run business positioned to compete profitably.