The turnaround specialist must be open and frank with all of these audiences. Once the major problems are spotted and identified, a game plan can be formulated. The plan must then be sold to all key parties inside and outside the company, including the board of directors, management team, and employees. Confidence must also be instilled in the bankers, major creditors, and vendors. If the company is in critical condition, the action plan is simple but drastic.
Emergency surgery is performed to stop the hemorrhaging.
One possibility may be a temporary freeze on all accounts payable. The goal is to halt the bleeding within 30 days for large companies, or ten days to two weeks for smaller companies. The skilled turnaround leader makes these cuts swiftly. Cash flow is the life blood of the business and to keep it flowing, it may be necessary to unload a losing division or business unit. Often the turnaround specialist will apply some quick, corrective surgery before placing it on the market.