5 Steps to Turnaround Bankrupt Companies

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:

  1. Grab the Cash.
  2. Freeze the Expenses.
  3. Interview Everyone (all the information about what is wrong and what should be done is already there).
  4. Set a strategy (a half-right strategy now is better than a perfect strategy in 6 months)
  5. 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.
“Most managers take the existing staff and try to find a job for them.  This is a disaster.  Lay out the organisation first.  If people don’t fit, get rid of them.  Sounds cold, but executives are paid to execute.” Alfred J. Moran, CEO Gérant Companies Inc.

1 Comment

What do you think? Let me know you were here ;-)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s