Insights for Growth...
Who Initiates a Turnaround
It should be the Board, they may have all the information, but often it is not
It should be the Accountants, they see the monthly results, but often its not
It should be the Banks, its their money at stake, but often its not.
It should be the Lawyer, they are a most trusted advisor, but often its not.
It should be the Family of the Leader, they are close and have the most to lose, but often its not
It should be the Staff, they know the business inside out, but often its not
It can be the Creditors, who start demanding their money, they are usually the last in line at the end
It can be the Taxation Department because you are holding other people's tax money in trust for the Government
It should be the Leader who says we have a problem but often Hubris, Ego, Depression, determination, fear of failure, or sheer bloody mindedness get in the way
In our view it will be one or several of the above
It will be someone or a group who cares about the business
But whomsoever it is they must have the balls and the power to initiate action
The Board should be best placed to do so and needs to step up and ask the hard questions and reach out for help. Sadly this is not always the case.
This is the ultimate test of a Board member. It is one they need to be prepared for in every company board they sit on. It is what they are paid to do.
Initiate action in a Crisis
In many situations the Board is compromised, possibly captured by a dominant leader, or most often, struggling to come to terms with the gravity of their situation and thus paralysed into inaction
Ultimately someone or a group has to stand up and be held accountable and in law it is the Board.
We have worked with all manner of Boards. From ones that existed on paper alone and had only met once in the previous 10 years to others that lead, inspire, and challenge both themselves and their company to create more value
Our experience has taught us, that one of the best antidotes to corporate failure is a high performing board. Put together a high performing Board and you create a culture of good governance. With that your entity has a far, far, greater chance of durable success than just you and a mate and your accountant.
Professional Boards are becoming more common, with members who have trained to be Directors coming from far more diverse backgrounds than the usual Legal and Accounting route to the Board table. We are seeing more capable senior executives with rounded general management exposure choosing to put that hard won experience to good use after they have concluded their time as CEOT
here is no such thing as a Golden bullet in this world but a great Board comes very close.We have all acted as Directors and are plugged into the world of good Directors and great Governance.
We can assist in ensuring that your entity finds Directors that are focussed on creating value for your business and it therefore gets the best Governance possible.