Seven Significant Factors in Business Turnaround

The global economic crisis has many companies still feeling the pinch. The Maver Management Group has worked with a number of clients and helped them turn around their business situation. We have also seen and reviewed other companies that continue to struggle. There are some common factors that differentiate the successful from the non successful other than the fact that one set has worked with us.

Seven of the most important elements are:
1. Ability to prove business viability. Your business plan must outline clearly the expectations and how you will specifically deliver those expectations.
2. Ability to manage key stakeholders. Once you have the plan that proves viability, you must be able to communicate it clearly and persuasively to all stakeholders.
3. Management credibility. A key element of instilling confidence in the plans is the credibility of the management group. It all starts with the top group. If they can’t generate respect and confidence, the plans will never happen.
4. Business reputation. Positive branding not only brings higher margins, it also contributes to the selling of the company’s viability and the products to the clients and customers. And to the Board, the banks and the suppliers!
5. Maintaining supplier credit. As businesses restart their growth, they require inventory build and funding in advance of the revenue they generate. You need to utilize the credit and payment terms with suppliers to generate the float.
6. Securing internal and external funding. Companies must have the funding required to support the business building initiatives. Without the funding plans, progress will stall.
7. Quality of the people. All progress eventually traces back to the people. Companies with the best people tend to rise to the top. Assess your people and make sure that the top ones are in the most critical positions. They will make the turnaround happen.

Some businesses are unsure whether they need assistance in turnaround management. Others find their company’s problems too hard to face and leave it too late, which often ends in insolvency. So how do you know when to call for help? The key warning signs to call in a turnaround management specialist are:
• If you continue to experience a substantial decline in sales and/or margins or have lost a major customer
• If you are struggling to refinance, raise additional capital or are likely to breach your banking covenants
• If cash flow is becoming harder to manage and creditor pressure is building
• If you are experiencing an increase in turnover at the senior management level

If you have any of these elements, you need turnaround help. You are not going to be able to do it yourself. Generally, companies in this situation have neither the expertise nor the bandwidth to be successful in turning the business around.

Contact us. The Maver Management Group can help.

Thanks,

John
John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Leading the Turnaround – 12 Traits of Leaders

The economy continues to have many companies in turnaround situations. Companies today, more than ever, need effective leaders.

Are you an effective leader? Not only do we ask this question of ourselves, but our organization is also asking it about us every day. And they are evaluating us. Here are the key traits that leaders must have and exhibit if they are going to be successful.

1. Mission setting ability. A mission defines the reason an organization exists. It sets the business apart. Have you created one for your company? Is this readily understood across the organization?

2. Visionary. This identifies where the company wants to go and what it wants to be when it gets there. Has the long term opportunity for the company been developed and provocatively communicated?

3. Smart. Leaders are analytical, creative and thoughtful. They have the brain power to understand situations and find the right path of action.

4. Competitive. Leaders want to win and they do. Leaders understand that competition is a good thing for personal and professional growth because it sharpens skills.

5. Positive Attitude. There are many quotes from famous people in all walks of life that support the importance of attitude. Success in life is based more on mental attitude than mental capacity. The leader's attitude always seeps through. Positive or negative.

6. Tenacity. There are going to be rough spots in any organization’s progress. In fact, the rough spots may be disasters that must be overcome. Leaders have the ability to not only stay the course despite the difficulties, but also to inspire others to do so as well.

7. Improvement orientation. Businesses must grow in terms of getting better and better or they will stagnate and die. A leader has to be in a state of continuous improvement and that comes from a combination of learning and executing.

8. Decisiveness. Leaders are action oriented. They gather the facts and they come to well reasoned, fact based decisions. They make the decision and do not delegate it or put it off.

9. Courageous. Leaders take risks – smart, educated risks. They choose a course of action and make it happen.

10. Motivating. Leaders find the good in opportunities and the good in people and cause people to find the means of capitalizing on opportunities and overcoming the hurdles.

11. Sense of humor. In order to survive, the leader has to have a good sense of humor, both for their own good and the good of the team and the organization.

12. Honest and ethical. This goes without saying. Leaders must have good values or their followers will leave them quickly.

How did you do on this check list? Contact us if we can help you with any of these.

Thanks,

John

John MaverPresidentMaver Management Group(925) 648-7561Maver Management

Social Responsibility – Kingdom Assignment

Social responsibility is an important Core Value for every company. Not only is it the right thing to do, it makes good business sense. It tells and shows employees that the company cares about them, their lives and the community in which they work and live. As a Core Value, it becomes part of the company’s culture and work fabric, causing behavior that has positive outcomes.

Corporate social responsibility (CSR) is the business responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise. It may be difficult to quantify, however, a number of studies have shown a correlation between social/environmental performance and financial performance. The benefits can be any or all of the following for example:
1. Revenue and profitability: Often the implementation of these ideas can lead to new sources of profitability either through new revenue opportunities or cost avoidance. Company after company has documented these benefits.
2. Human resources: It can be an aid to recruitment and retention. CSR can help improve the perception of a company, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering.
3. Brand Differentiation: Companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. You will note the sweep of “green” products that have been introduced in almost every industry.
4. Risk management: Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption, scandals or environmental accidents. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.

The Maver Management Group has long been a supporter of social responsibility. We have been active with a number of area organizations and ministries as part of our giving back. We are currently involved in a “Kingdom Assignment" of raising money to pay for Bibles that will be used by new churches established by CityTeam, San Francisco. CityTeam works to help the economically disadvantaged in San Francisco and is working diligently using a productive formula to establish new churches and reach many, who desperately need the love, caring, guidance and help. We are blessed to be involved in this good work.

As we reach out to others to tell them of this program, we consistently find that the real benefit comes to us. Not in terms of new business or profitability, but in terms of being of significance in what we do. It is a Core Value for this company and the impact is far reaching.

This type of assignment may not fit your needs or desires perfectly. However, another one will and we encourage you to include social responsibility programs in the activities of your company, both on a personal and corporate level.

Contact us if you want to be part of our efforts or if we can help you with yours in some way.

Thanks.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management