What is a Turnaround Strategy?
A turnaround strategy is an approach that organizations use to address their financial distress and challenges, and to return to profitability. This type of strategy involves identifying and addressing issues that are causing the organization's difficulties, and developing plans to focus on areas such as restructuring costs, increasing revenue, and improving efficiency. This helps to ensure that the organization has the resources and capabilities to continue operations and eventually return to profitability.
What's included in this Turnaround Strategy template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Turnaround Strategy template for?
The turnaround strategy template is designed to assist businesses dealing with common challenges such as persistent decreases in sales, mounting losses, cash flow problems, insolvency, and poor management. It can help organizations identify areas of focus for their turnaround strategy, develop objectives and projects to address those focus areas, and set measurable targets to track their progress. This template provides a comprehensive and structured approach to developing an effective turnaround strategy.
1. Define clear examples of your focus areas
Focus areas are the most important areas of your business where you should focus your resources and attention. These should be the most pressing areas of your business that need to be addressed in order to achieve profitability. Examples of strategic focus areas that could fall under a Turnaround Strategy could be: Restructure costs, Increase revenue, and Improve efficiency.
2. Think about the objectives that could fall under that focus area
Objectives are the specific goals or outcomes that you want to achieve within each focus area. These objectives are used to create a clear plan of action for how to achieve success in each focus area. Examples of some objectives for the focus area of Restructure costs could be: Reduce operational inefficiency, and Negotiate new supplier contracts.
3. Set measurable targets (KPIs) to tackle the objective
Measurable targets, or KPIs (key performance indicators), are used to track progress towards achieving each objective. These KPIs should be specific and measurable, and should have an initial value, target value, and unit. For example, under an objective of Reduce Operational Inefficiency, a KPI may be to Decrease Monthly Spend on Unused Services, with an initial value of $5000, target value of $0, and unit of '$'.
4. Implement related projects to achieve the KPIs
Projects, or actions, are the specific activities that you will implement to achieve each KPI. It is important to make sure that each action is related to the KPI that it is designed to achieve. An example of a project related to Restructure costs could be: Seek new suppliers to negotiate better costs.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade is a strategy execution platform that provides organizations with the tools they need to effectively execute their strategies. With Cascade, organizations can easily track, manage, and report on the progress of their projects and KPIs, so they can see faster and more effective results from their turnaround strategy.