Ten tips from turnaround strategies for sound financial management: Finance, finance, finance … and ethics

Abstract

Purpose

Provides ten “back to basics” management practices that should be taken on board if management is able to successfully implement a turnaround strategy.

Design/methodology/approach

Draws on the experiences of turnaround management; presents scenarios illustrating typical problems experienced by companies; offers guidance on the management practices that should be adopted.

Findings

At some point in time many managers will face that sinking feeling when they realist that their company is fast approaching a financial crisis. Many factors can contribute to the financial problems of a company and manages are constantly challenged to keep on top of their organizations true financial situation. Turnaround strategies are recognised as being critical to re‐establish company viability and the business news contains stories of both companies that have successfully implemented turnaround strategies as well as many where management have failed. Identifying the problems in turnaround situations and finding the correct solution are simpler than they seem. Management, however, often make the mistake of neglecting the fundamentals of the situation and fail to focus on those issue that are, vital to achieving successful turnarounds. Listed are ten fundamentals that management neglect at their peril if they are to nurse their companies back to a state of financial health.

Practical implications

Offers expert advice from turnaround managers on the do's and don'ts of effectively implementing a turnaround strategy.

Social implications

Provides advice to companies on how they can continue to perform effectively.

Originality/value

Offers ten “back to basics” management practices and provides examples and scenarios to illustrate the points made.

Citation

(2010), "Ten tips from turnaround strategies for sound financial management: Finance, finance, finance … and ethics", Strategic Direction, Vol. 26 No. 6, pp. 25-27. https://doi.org/10.1108/02580541011041558