The impact of global events on today’s business environment is unmatched over the last seventy years.
From the Covid-19 pandemic to the Russian invasion of Ukraine, major flood events, rising geopolitical tensions and a Federal Election, businesses are feeling the deteriorating effects of this unprecedented chain of events – and the practical impacts can be crippling.
Our clients and peers have cited skyrocketing coal and energy costs, delays on imports and a lack of transport availability, as just a few of the challenges threatening the survival of their business.
So what do we do about it?
Historically, the obvious answers have been:
However, given the speed and volatility of the changes, some of our clients have simply not been able to achieve one or any of these historical solutions.
What else can we do – what are the badges of success, or failure?
We suggest the following:
We have seen a number of clients utilise a mix of these strategies to manage through these uncertain times. For example – fleet owners negotiating utilisation based lease charges for their fleet and ensuring new customer contracts not only include a rise and fall for fuel, but also shortened payment terms. Some retailers are now acknowledging or accepting stock outs as an unavoidable consequence of the current situation – which historically has been seen as a fatal flaw. The alternate of being left with excess, out of season stock is not acceptable from a cashflow perspective.
The TMA
The Turnaround Management Association (TMA) encourages boards of directors and management teams of financially stressed businesses to engage early with turnaround professionals. Our aim is to guide companies from uncertainty to stability.
Our experts have the tools to help your business navigate through uncertain times. Search our member directory to find experts in business recovery, corporate turnaround and restructuring.