Corporate Turnaround: How Managers Turn Losers Into Winners!

by Donald B. Bibeault

• ISBN13: 9781893122024
• ISBN10: 1893122026
• Edition: 2nd
• Format: Paperback
• Copyright: 1998-01-19
• Publisher: INGRAM

Table of Contents

List of Tables	xiii
Preface	xv
Acknowledgments	xvii
About the Author	xix
Introduction	1	(6)
PART ONE: THE REASONS FOR CORPORATE DECLINE
Failure and Decline in Perspective	7	(10)
The Perspective	7	(1)
Definitions of Failure and Decline	8	(2)
Failure and Decline Statistics	10	(1)
Trajectories of Failure	11	(6)
Predictable Organizational Crisis	17	(6)
The Seeds of Future Crisis	17	(1)
Stages of Corporate Development	18	(5)
Is Decline Externally or Internally Caused	23	(4)
External Reasons for Decline	27	(8)
The Impact of Change	27	(1)
Economic Change	28	(1)
Competitive Change	29	(1)
Government Constraints	30	(1)
Social Change	31	(1)
Technological Change	32	(3)
Internal Reasons for Decline	35	(14)
The Management Factor	35	(3)
One-Man Rule	38	(2)
Lack of Management Depth	40	(1)
Management Change Problems	41	(1)
Inbred Bureaucratic Management	42	(1)
The Unbalanced Top Management Team	43	(1)
Weak Finance Function	43	(1)
Nonparticipative Board of Directors	44	(5)
The Most Common Errors of Bad Management	49	(12)
Failure to Keep Pace with Changes in the Marketplace	49	(1)
Lack of Operating Controls	50	(3)
Overexpansion	53	(5)
Excessive Leverage	58	(3)
Early-Warning Signals of Decline	61	(12)
Functional Blinders	61	(1)
Types of Warning Signals	62	(1)
Mathematical Forecasting Signals	62	(4)
Adverse Trend Signals	66	(2)
Adverse Behavioral Signals	68	(5)
The Moment of Truth for Management	73	(8)
The Ostrich Approach	74	(1)
Fighting Reality	75	(1)
Reality Arrives	76	(5)
PART TWO: THE BASICS OF CORPORATE TURNAROUND MANAGEMENT
The Corporate Turnaround Perspective	81	(10)
The Perspective	81	(1)
A Quantitative View of Turnarounds	82	(4)
The Management Process Turnaround	86	(1)
The Economic (or Business Cycle) Turnaround	87	(1)
The Competitive Environment Turnaround	88	(1)
The Product Breakthrough Turnaround	89	(1)
The Government-Related Turnaround	89	(2)
Stages in the Turnaround Cycle	91	(20)
The Stages of a Turnaround	92	(1)
The Management Change Stage	93	(2)
The Evaluation Stage	95	(4)
The Emergency Stage	99	(3)
The Stabilization Stage	102	(4)
The Return-to-Normal-Growth Stage	106	(1)
When Is the Company Turned Around?	107	(4)
The Key Factors in Turnaround Success	111	(14)
The Elements	111	(2)
Improving Management Processes	113	(2)
A Viable Core Business	115	(3)
Adequate Bridge Financing	118	(3)
Improving Motivation	121	(4)
Turnaround Failures	125	(16)
Multiple Turnaround Attempts	125	(2)
Ineffective Management	127	(2)
Poor Turnaround Strategy	129	(1)
Insufficient Financial Resources	130	(1)
Government Interference	131	(1)
Bail-out Strategies Short of Chapter 11	132	(2)
Life in the Toils of the Bankruptcy Act	134	(7)
PART THREE: LEADERSHIP IN TURNAROUND SITUATIONS
The Management Change Stage	141	(8)
The Management Change Decision	141	(4)
Quantitative Views of Management Change	145	(4)
Turnaround Leader Characteristics	149	(14)
A Variety of Styles	149	(2)
Spotting the Turnaround Leader	151	(2)
Required Skills	153	(3)
Motivating Characteristics	156	(2)
Turnaround Leaders' Style	158	(5)
Taking Charge	163	(18)
Take Charge Strategies	163	(3)
The First Step---Getting People's Attention	166	(3)
Immediate Actions	169	(3)
Attacking Problems	172	(4)
Keeping Charge	176	(1)
Some Parting Thoughts on Taking Charge	177	(4)
Motivating the Organization	181	(22)
The Importance of Motivation	181	(1)
The Stages of Turning People Around	182	(4)
Basics of Motivation in a Turnaround	186	(3)
Strong Leadership	189	(2)
The Organizational Kick in the Pants	191	(2)
Reestablishing a Climate of Success	193	(4)
Participation and Communication	197	(6)
PART FOUR: MANAGEMENT STRATEGIES AND PRACTICES IN A TURNAROUND
The Evaluation Stage	203	(28)
Structuring the Evaluation	203	(2)
The Preliminary Viability Analysis	205	(4)
The Detailed Viability Analysis	209	(4)
Evaluating the Company's Financial Strength	213	(6)
Evaluating a Company's Competitive Position	219	(4)
Evaluating Your People Resources	223	(2)
Putting It All Together	225	(6)
Planning Strategies in Turnaround Situations	231	(32)
The Need for Practical Planning	231	(3)
The Basic Planning Elements	234	(3)
Planning Contrasts by Turnaround Stage	237	(2)
The Emergency Plan	239	(12)
The Stabilization Plan	251	(4)
The Return-to-Normal-Growth Plan	255	(8)
The Emergency Stage	263	(36)
Emergency Stage Basics	263	(1)
Asset Redeployment in the Emergency Stage	264	(4)
Financial Management in the Emergency Stage	268	(9)
Operating Management in the Emergency Stage	277	(7)
Marketing Management in the Emergency Stage	284	(9)
Human Resources Management in the Emergency Stage	293	(6)
The Stabilization Stage	299	(38)
Stabilization Stage Basics	299	(1)
Asset Redeployment in the Stabilization Stage	300	(2)
Financial Management in the Stabilization Stage	302	(9)
Operations Management in the Stabilization Stage	311	(7)
Marketing Management in the Stabilization Stage	318	(8)
Human Resources Management in the Stabilization Stage	326	(7)
In Summary	333	(4)
The Return-To-Growth Stage	337	(26)
The Basics of This Stage	337	(1)
Asset Redeployment in the Return-to-Growth Stage	338	(2)
Financial Management in the Return-to-Growth Stage	340	(6)
Operations Management in the Return-to-Growth Stage	346	(4)
Marketing Management in the Return-to-Growth Stage	350	(7)
Human Resource Management in the Return-To-Growth Stage	357	(6)
Appendix	363	(10)
Selected Bibliography	373	(22)
Index	395