Alfred J. Moran gives 5 steps to turnaround bankrupt or deeply troubled companies. He has turned around companies for 25 years. Here are his 5 steps:
- Grab the Cash.
- Freeze the Expenses.
- Interview Everyone (all the information about what is wrong and what should be done is already there).
- Set a strategy (a half-right strategy now is better than a perfect strategy in 6 months)
- Draw up the “Ideal” Organisation chart. Important: Start fresh, do not start with the people already in the company. After you have the “ideal” chart, you can slot in the existing people if they still fit in somewhere. DO NOT TAKE THE EXISTING ORGANISATION CHART AS THE START POINT.