The line between these tasks is often blurred, as companies who attempt to ready themselves for new processes find they are seriously hampered by existing operational and financial problems. For troubled companies, radical organizational change is often needed before they can attempt to adopt new ways of doing business. Blockers to change must be removed. These issues are often symptoms of a track record indicating an inability to change. Issues such as these are usually just the tip of the iceberg, but are frequently ignored as organizations continue to operate in denial of the facts.
Denial is a formula for certain disaster.
During this adjustment period, a company's lenders will want to fully understand its strategic plans for market exposure and new initiatives, its funding requirements and, equally important, its commitment and demonstrated ability to change. Consistent and credible communication with all stakeholders is vital to ensure support and manage expectations. Many management groups have not been in this situation before, and are not familiar with the turnaround process. It's vital to recognize trouble spots that may prevent a company from successfully responding to change. If identified early enough, trouble spots can be addressed and remedied.