Turnaround Strategy

What is a Turnaround?

A turnaround occurs following extreme financial distress and or organisational collapse and results in improvement in performance

How do you know if your organisation is in trouble?

Turnaound Intervention Barometer Quiz

Have you seen a steady decline in membership renewals or subscriptions or new subscriptions?
Is your revenue showing signs of steady decline?
Are your costs steadily increasing?
Are there significant variances between your budget and actual performance?
Are you just breaking even or making a loss?
Has your financial performance shown a steady decline?
Are you making significant losses?
Do you have cash flow constraints?
Are you unable to cover your fixed costs?
Do you have to wait for money to come in before you can pay your staff?
Are you unable to pay staff salaries, creditors and your rent?
Are you unable to pay your statutory levies and taxes?

If you answered YES to the first 6 questions this is a sign that your organisation is going to be in serious trouble soon. If you answered YES to Question 7 – 9 you are already in serious trouble. If you answered answered YES to Questions 10 – 11 you are in a crisis.

If your organisation is in serious trouble or in crisis you need a turnaround strategy ASAP

FAST FACTS

Research indicates that more than 25% of all non-profit organisations need turnaround.

Non-profit organisation declines and crises are usually caused by factors within management control.

Some of the factors that are responsible:

Not meeting the needs of stakeholders
Mismatch in the market
Underinvestment in capacity building and training
Questionable Competencies of management and staff
Inadequate resources or spreading resources too thin
Low Executive compensation
Regulatory constraints
Changes in the financial arena
Inability to adapt to changes in the environment
Complacency and taking your eye off the ball

FAST FACTS

“It takes courage to admit that you have a problem so that you can do something about it.”