A workable plan.

The prospects for management turnaround are regarded as realistic and viable when there is a viable or realistic plan for it.

No matter what the accumulated losses, the on-going losses, or the loss of customers or valuable employees, no matter how large the problems of the company, no matter what the headaches and the disappointments are, it is not too late to cure the situation, as long as there is a realistic, well thought-out expectation for success.

There must be a realistic, well thought-out expectation that if management takes certain actions, the following can and will happen:

Certain substantial positive results will be attained by the company; and there is a realistic expectation that measurable improvements will be made in efficiency and or sales and or profitability swiftly;

Parties whose support is essential to the success of the company will provide that support. Parties such as lenders, key suppliers, employees, unions, customers, existing and prospective shareholders and other investors, and possibly some branches of government;

With that support, and other rationally-expected events, operating and financial viability will be restored.

A realistic plan for achieving support of these parties constitutes a indispensable element of any viable management turnaround concept.

Our experience tells us that when management is creative and flexible and works to obtain support of third parties on a basis that is attractive to both sides of the transaction, many intelligent new provisions are possible with practically all parties. As with lenders, minor suppliers, with shareholders, with unions and even with governments. It should be remembered that it is usually easier to obtain such support in stages. Remember that determination and success breed respect, compassion and support, and that having the support of some parties makes the support of the others easier to obtain. Such arrangements contribute enormously to the management turnaround process.