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During the boom years of the late 1990’s
many weak companies were kept alive solely
by the robust economy that created almost a
“No Fail” environment for business.
Since the economic downturn, many of these
companies have either gone through workout
or bankruptcy, costing their owners,
investors and lenders billions of dollars.
If the business were large enough, a
crisis manager was typically brought in to
terminate employees, sell off assets, and
negotiate with creditors. When their work
was completed the company was out of
business and everyone involved was counting
their losses.
CXO Advisory Group has created and been
extremely successful with an approach to
prevent the need for the above-mentioned
activities. An approach we refer to as The
Preemptive Turnaround.
CXO professionals utilize The Preemptive
Turnaround to assist companies that have
either stagnated, are facing a major
transition, or are under-performing. In most
cases the company is faced with major
operational, financial, organizational,
technological or market challenges where
management has been unable to quantify the
problems, identify their cause, and/or
resolve them.
CXO has achieved successful outcomes
utilizing The Preemptive Turnaround in its
work with manufacturing, distribution and
technology companies. The 4 steps of The
Preemptive Turnaround process are:
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An assessment
of the true condition of the business,
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Identification
of the root causes of the major
problems, |
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Establishing
corrective action, and
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Monitoring to
assure that the desired results are
achieved.
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With the participation of company
management, CXO’s clients are typically
“reborn” as growth companies, with
significant increases in revenue,
profitability, market penetration and
shareholder value.
In those situations where management
either lacks the skills to effect the needed
changes, or is uncomfortable doing so, CXO
professionals often serve as interim
executives during the implementation phase.
CXO clients have included private equity
firms, boards of directors, and owners of
family businesses.
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Strategic
Business Assessment