February 29th, 2012
Organizations helped: 30 (multiple assignments in 11 companies)
Business Type: Manufacturing, Service, Distribution, Technology, University, City Government, Agriculture, and Retail
Revenue Size: $2MM to $150MM
Geography: IA, MN, MO, KS, IN, WI
Engagement Type:
| Bank Required Assessments |
12 |
Turnaround and Restructuring
- Operational
- Financial
- 3 TMA Turnaround of Year awards
|
11 (8 remain in operation) |
Management Consulting
- Senior level consultation
- Interim leadership
- Marketing and sales direction
- Quality and manufacturing processes
|
13 |
| Company Sale (Licensing) |
4 |
| Liquidations |
2 |
…bridging the gap from stress to success
Management Consulting | Turnaround & Workout Management | Assessment | Restructuring
Advisory Services to Lenders | Interim Management | Receivership | Refinancing | Exit Strategies
Des Moines Minneapolis Kansas City
Posted in Business Strategy, Evaluation, Leadership, Turnaround | No Comments »
July 16th, 2010
I was one of three guest speakers at a management forum a few years ago. One of the speakers asked, “Write down the name of your most important supplier.”
He paused a couple of moments then asked for a show of hands. Nearly 100 people were in the room: “How many named your primary material supplier? …primary technology supplier? …healthcare insurance provider?” By then, about everyone had raised a hand.
Who is our most important supplier? Go ahead, write it down.
http://www.youtube.com/watch?v=wRRKiRYzA_o
Is your most important supplier doing a good job for you?
Is there a plan for improvement?
Something to think about. (Terry Myers)
Posted in Business Strategy, Leadership, Value Chain | No Comments »
June 30th, 2010
How do you recover and grow a business without losing its soul? Some think it’s impossible.
I guided the turnaround of a Minnesota company (client) a few years ago. It was voted TMA “Turnaround of the Year.” We fixed financial performance while maintaining the client’s founding values and culture. Here’s how:
- Keep traditions! While “traditions” seems formal, a company’s culture thrives on them. One of the easiest ways to lose culture is to give up traditions. Even in tough times – including salary and wage reductions – the client maintained its bimonthly all employee I-Power sessions, BBQ’s, pizza, picnics, and annual bring your classic car to work day. Every new employee meets one-on-one with each Leadership team member.
- Evangelize the backstory. Commitment and consistency are the reasons customers believe in the client and wants to do business with it. Presentations to customers, consultants and new business prospects begin with how the the founder started a one man service company in 1971.
- Focus on retention. If you have to change an entire team, it’s difficult to keep the soul of the business intact. Soul is the core – the people who help serve customers and grow the business. The average client associate has 12+ years company experience.
- Keep a sense of humor. Look for people with a sense of humor and give them the license to be themselves with customers. Even when times were not so good the owner maintained his humor. Today, people recall his classic jokes and “deeper thoughts.”
- Listen to loyal customers. Like many companies, change within the client is gradual. It can be hard to detect. Ask long term customers their perspective on changes and potential new directions. The national sales group at the company averages over 60 trips a year seeing 6 to 12 customers each trip.
- Improve continuously. Innovation keeps the client fresh. Since the turnaround, individuals and teams have been steadily improved turning in 1500 individual and 700 team improvements over the past five years.
During the turnaround things were tough – really tough! Since the turnaround the client has been profitable every month. It’s a great success story – beginning with people: vision, hard work, and soul. Everyone on the team played a role. (Rick Lowenberg)
Posted in Leadership, Turnaround | 63 Comments »
June 23rd, 2010
Most managers know their cash flow (either good or bad). Most know their operating statement (though many only know the top-line or the bottom-line).
When asked about their balance sheet there’s often a pause… Days sales outstanding in receivables? Inventory details about raw materials, work in process, or finished goods balances? Good, or bad? Why?
Understanding a balance sheet is important. It drives operations with working capital, borrowings, and investment. A detailed review of the balance sheet is a method of “squeezing the waste out of the business.”
For example, increasing inventories could be an indication of slow moving quantities, excessive purchasing activity, or missed sales forecasts. Stale receivables are often an indication of poor credit decisions, or unfulfilled customer expectations.
Each situation has a potential impact. None would be found by analyzing only the operating statement. Either one or both may impact line-of-credit availability.
Examine each core statement monthly – balance sheet, operations, and cash flows. Various resources and opportunities are buried in the details. (by Terry Myers)
Posted in Evaluation, Financial, Turnaround | 57 Comments »
May 14th, 2010
There’s optimism that the recession may be winding down and that things will go back to ‘normal’ — like before the crash. Be aware of the typical post-recession realities.
Experience shows that industries emerge from recessions differently – some stronger than others; some sooner than others. Currently, manufacturing leads the way. But we need to understand who’s originating the orders and from what segments and sectors? Can the value-chain supply expected growth?
Also, what will be the new competitive landscape within your industry? Some companies barely survived the past two years. Others were creating and investing. How have conditions changed? Has the battlefield been redefined — new suppliers, products/ services, customer expectations? New players? Value-chain disruptions?
Finally, how has your company weathered the storm? Did you lose talent? Cut services or product lines? Do you have cash to grow? Are today’s financial agreements too restrictive? How will prices and services impact your margins?
All are important questions for your team to understand and manage. Post recession realities will bring plenty of opportunities and challenges. Think them through. Check your assumptions. (Terry Myers)
Posted in Business Strategy, Evaluation, Value Chain | 56 Comments »
March 27th, 2010
Harold Geneen was Chair of ITT during the 1960’s and -70’s. Not a warm-fuzzy guy, many of today’s managers might think of him as an ogre.
Geneen’s book, Managing, offers many sage observations that apply today. His thoughts on “unshakable facts” are valuable. Here’s the substance…
No word in the English language more strongly conveys the intent of final and reliable reality than the word, “fact.”
However, no word is more honored by its abuse in actual usage. We see apparent facts, assumed facts, reported facts, hoped-for facts, and accepted facts.
In many cases, the initial information presented was not factual at all. In the areas of Management momentum and decision-making, facts are all-important!
The highest art of a manager requires the ability to smell a real fact from all others — and to have the guts and/or plain impoliteness to be sure that it’s an “unshakable fact.”
Learn to tell the genuine from all others. Force to the surface and deal only with unshakable facts. (Terry Myers)
Posted in Evaluation, Financial, Leadership, Turnaround | No Comments »
March 23rd, 2010
Are You a Walt Disney or a Roy Disney? A Business Week article focused on the need for innovators to partner with operators to deliver the innovator’s vision to the market place.
In the Disney organization, Walt created the ideas and his brother Roy organized the resources to make them happen. Walt dreamed up the Mickey Mouse concept; Roy organized the people, processes, and finances to make it real. Same with the theme park, full-length cartoons, etc.
Considering new approaches? New products? New services? How many casualties do we hear about where someone (or a team) had an idea and no one could make it happen?
Do your innovators and operators work together?
Delivering an idea from concept-to-cash – effectively, economically and in line with customer requirements – is the difference between the strong and the weak.
What do you do best and how do you collaborate with others to complement your capabilities? It’s something to consider in an environment when cash is tight and resources are few. (Terry Myers)
Posted in Business Strategy, Turnaround, Value Chain | 103 Comments »
March 11th, 2010
I see similarity between sports teams and business. There are star players, role players, specialists, managers, head coaches, trainers, owners and customers (the fans). One measures sales and profits; the other wins and losses and ultimately winning a championship.
Many of you know the Boston Celtics made a huge, risky investment a few years ago when they traded for the Minneapolis Timberwolves favorite player, Kevin Garnett. This could have back-fired but it turned out a huge success. In my business career, I have and will continue to make investments in people and equipment…and remain focused on strategies, goals and business plans to win championships.
The Boston Celtics asked their organization to buy into the following components to deliver a Championship. These components exist in most successful operations:
1. Trust: Everyone not just the “stars”
2. No Excuses: Stop blaming others for our own failures
3. Change: The reward for changing your attitude and your behavior will exceed what you believed possible
4. Mental Toughness: Generate the will and intensity to overcome all obstacles you face
5. Tradition: Part of something that transcends self. You are part of something that was before you and will be here after you leave
By Rick Lowenberg
Posted in Business Strategy, Leadership | 60 Comments »
January 31st, 2010
Turnarounds are about time pressure and trade-offs. Tough choices must be made. The possibilities may be few or many. And, you try to be even-handed.
The questions are relatively simple. It’s the answers that are painful. For example: Do we need all of the employees on payroll? Simple question, until you consider individual names on the payroll.
Or, can we continue to pay everyone 100% of salary? Again, simple question until you consider individuals that you might lose when you reduce wages across-the-board.
That’s only two of many questions. How about impacts on customers, suppliers, lenders, and others? There are many key decisions, numerous trade-offs, and the pressure to take action.
Management’s actions should be impartial. Communication should be clear and empathic. The organization has a memory. After the turnaround is successful – if, it is successful – insiders and outsiders will always remember whether or not they were treated reasonably. (Terry Myers)
Posted in Leadership, Turnaround, Value Chain | 66 Comments »
January 26th, 2010
Every now and then ask your key people to give you their sense of your company’s situation. In one-on-one sessions discuss your company’s SWOT – internal strengths and weaknesses, and external opportunities and threats.
Then, pull the group together and hammer-out a consolidated list. During the conversation (often debate), encourage brutal honesty and avoid finger-pointing. Build consensus to eliminate duplications and over-laps. As the revised SWOT emerges, keep it manageable. We suggest reporting only the most important items in each SWOT classification.
The updated SWOT gets everyone on the same page – strengths and opportunities to leverage, weaknesses and threats to manage.
Actively use it – focus and prioritize the issues. Create Action Plans and address progress at weekly staff meetings.
Many times we observe that… the management team has not discussed their situation, not everyone understands the situation, and few use the SWOT after it is prepared.
SWOT can be an empowering exercise. It’s a good idea to update it quarterly. (Terry Myers)
Posted in Business Strategy, Evaluation, Turnaround | 109 Comments »
