While industry experience is one factor when considering potential turnaround managements, VAD is of the expert opinion that its usually less important than the management’s experience in dealing with real-world crisis situations. Other factors to consider when bringing in a turnaround management include the following:
Whether hired as a consultant or an interim CEO, the turnaround management’s first step is usually a top-to-bottom viability assessment of the business to determine its prospects for survival. This process can take anywhere from a few hours to a couple of weeks and tends to be as much intuition and “art” as it is science.
Assuming the management determines the business is still viable, the next steps are usually a detailed analysis of the company’s financials and in-depth interviews with key personnel. He or she will likely want to spend hours interviewing executives, managers, and board members, asking about big-picture strategy, goals, and overall direction.