If you know your company is heading for trouble, you need a turnaround strategy. We’ve created a free checklist you can use for your business risk management.
This list will assess if your company needs to employ a turnaround strategy, and what areas you should be focusing on.
Place a tick beside any sentence that applies to you:
- - Are there governance and management standards in place?
- - Is the management structure appropriate for the size, type and complexity of the business?
- - Do the members of the management team understand their roles?
- - Is there a balance in participation, and balance of power?
- - Is the management team aware of the forces affecting their industry/market?
- - Are your staff fulfilling the critical functions, sufficiently skilled?
- - Do they recognise the challenges facing the business?
- - Are the staff capable of a turnaround?
- - Are the managers on the same page, and do they meet regularly?
- - Do the managers have a clear strategy/vision and is it appropriate?
- - Do the managers have high integrity and honesty?
- - Are decisions made in a way that is appropriate for the business?
- - Is the business plan appropriate for the size/type of business?
- - Is management financial information readily available?
- - Are the management information and key performance indicators adequate for the business?
- - Is accurate, meaningful management information produced on time?
- - Do you meet services levels expected?
- - Are your staff open and cooperative in discussing and addressing the issues facing them?
- - Are your staff customer focused?
- - Is succession planning an issue for the business?
- - Can existing managers be relied on?
- - Have adequate plans been made for the future?
Commitment to the company
- - Is the management team committed to the company?
- - Do the managers have a stake in the business?
- - Are the managers good at leading and motivating their workforce?
- - Can you trade profitably?
- - Do you have support from secured creditors?
- - Are your secured creditors supporting your trade on strategy?
- - Will staff see the process through?
- - Would creditors defer or compound their debts?
Any boxes left unticked could be a problem for you. Add up the number of boxes you haven’t ticked and find your result below.
Less than 5: A healthy business
Congratulations, your business is low risk, and not in need of a turnaround strategy. While there are always areas you can improve, it looks as though things are running smoothly and you’re in no risk of insolvency.
Between 6-12: Time to get proactive
While you’re still trading and things don’t seem that bad, you’re not as risk-free as you’d like to believe. Don’t ignore these important signs – you need to get proactive about business risk management and work through these issues before they become bigger problems later on. Call McDonald Vague to talk about a treatment plan to get your business back on its feet.
More than 12: Heading for trouble
Your business could be in danger and you need to act immediately. You need to talk to a qualified professional who will help you figure out your company's turnaround strategy. Call the friendly team at McDonald Vague today.