Strategies and Essentials for Successful Business Turnaround
Michael Porter in the year 1985 outlined a set of
‘GENERIC STRATEGIES ‘ also known as Porter’s
Generic Strategies. It describes how a company
undertakes competitive advantages in various
market
Similar to Porter’s Generic Strategies a successful
turnaround strategy would need the management
team to focus on the following three important
factor:
1.
Low cost operator strategy (Cost Leadership)
2.
Differentiated products (Differentiation)
3.
Leadership (Focus)
“Leadership is the ability of a manager to
induce subordinate to work with confidence
and zeal.” by- Koontz and O’Dennell
“Leadership is the exercise of authority and
making of decisions” by-Dubin, R
“Leadership is the activity of influencing
people to strive willingly for group
objectives.” by- George R. Terry
Mana
geme
nt
Team
CEO
HR
Team
Produ
ct
Team
Sales
Team
Finan
ce
Team
SCM
Team
Other
s
People Skills
Creativity
Focus
Decisiveness
Resilience
Perseverance
Honest and transparent
Collaboration/Teamwork
Improvising the product.
Bringing in new features.
Reducing cost of production.
Improvising the quality.
Improvising the packaging.
Increasing the customer services.
Reducing operating cost.
Reducing the lead-times.
Holding lesser stock.
Reducing transportation times.
1.
Analysis of present situations.
2.
Stabilizing of situations of crisis.
3.
Redefining of the strategy to suit present
environment.
4.
Financial restructuring.
5.
Strategy implementation.
6.
Change management.
7.
Getting back to normal position.
DIRECTIVE STYLE
ANALYTICAL STYLE
CONCEPTUAL STYLE
BEHAVIOURAL STYLE
As per Slatter, Lovett, and
Barlow(2006),model for attaining successful
business turaround includes following
essentials elements:
1.
Crisis stabilisation.
2.
New leadership.
3.
Stakeholder management.
4.
Strategic focus.
5.
Critical process improvement.
6.
Organisational change.
7.
Financial restructuring.
Organization Change and Subsystem
Change
Planned v/s Unplanned Change
Transformational v/s Incremental
Change
Remedial v/s Developmental Change
There have been various instances where the
turnaround strategies prove to be a success
story. Some of the examples of sucessful
turnaround implementation are:
1.
Apple Company.
2.
Marvel group.
3.
Dell Computers.
In order to ensure quality in the management
process, following eight quality management
principles needs to be taken into
consideratiom:
Customer focous.
Leadership.
Involvement of people.
Process approach.
System approach to manahement.
Factual approach to decision making.
Mutually beneficial supplier relationships.
Outlined are Michael Porter's Generic Strategies, focusing on cost leadership, differentiation, and focus leadership, along with key factors like leadership abilities and team dynamics. The successful turnaround strategy involves crisis stabilization, new leadership, stakeholder management, strategic focus, process improvement, organizational change, and financial restructuring.
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Presentation Transcript
Michael Porter in the year 1985 outlined a set of GENERIC STRATEGIES also known as Porter s Generic Strategies. It describes how a company undertakes competitive advantages in various market Similar to Porter s Generic Strategies a successful turnaround strategy would need the management team to focus on the following three important factor: 1. Low cost operator strategy (Cost Leadership) 2. Differentiated products (Differentiation) 3. Leadership (Focus)
Leadership is the ability of a manager to induce subordinate to work with confidence and zeal. by- Koontz and O Dennell Leadership is the exercise of authority and making of decisions by-Dubin, R Leadership is the activity of influencing people to strive willingly for group objectives. by- George R. Terry
CEO HR Team Other s Mana geme nt Team Produ ct Team SCM Team Finan ce Team Sales Team
People Skills Creativity Focus Decisiveness Resilience Perseverance Honest and transparent Collaboration/Teamwork
Improvising the product. Bringing in new features. Reducing cost of production. Improvising the quality. Improvising the packaging. Increasing the customer services. Reducing operating cost. Reducing the lead-times. Holding lesser stock. Reducing transportation times.
1. Analysis of present situations. 2. Stabilizing of situations of crisis. 3. Redefining of the strategy to suit present environment. 4. Financial restructuring. 5. Strategy implementation. 6. Change management. 7. Getting back to normal position.
DIRECTIVE STYLE ANALYTICAL STYLE CONCEPTUAL STYLE BEHAVIOURAL STYLE
As per Slatter, Lovett, and Barlow(2006),model for attaining successful business turaround includes following essentials elements: 1. Crisis stabilisation. 2. New leadership. 3. Stakeholder management. 4. Strategic focus. 5. Critical process improvement. 6. Organisational change. 7. Financial restructuring.
Organization Change and Subsystem Change Organization Change and Subsystem Change Planned v/s Unplanned Change Transformational v/s Incremental Change Remedial v/s Developmental Change
There have been various instances where the turnaround strategies prove to be a success story. Some of the examples of sucessful turnaround implementation are: 1. Apple Company. 2. Marvel group. 3. Dell Computers.
In order to ensure quality in the management process, following eight quality management principles needs to be taken into consideratiom: Customer focous. Leadership. Involvement of people. Process approach. System approach to manahement. Factual approach to decision making. Mutually beneficial supplier relationships.
O Organizational skills Time management Technical skills Technical knowledge Quality management Risk management Technical skills Human/People skills Leadership Human/People skills rganizational skills Planning Communication Scheduling Motivation Budgeting Resource allocation Supervision Cost management Organizing Conflict management Negotiation Project management Use of IT Staffing Administrative Team-building
