Case Study: Turnaround

Problem & Constraints

• Board Concerned but unclear on issues/responsibility
• Financing arranged for acquisitions not completed
• Volatile sales and cash flow
• IP protection unclear
• “Something may not smell right”
• Founder/CEO owns >51%

Engagement

• Conduct investigatory review of operations
• Recommend actions for Board
• Prepare to assist Board & management in implementing recommendations

Engagement Actions

• Provide grounding for management team in E.O.S. as initial tool-set to manage & lead company
• Provide specific coaching in team development and holding leadership team accountable
• Provide introductions/Recruit 2 new team members and assist on-boarding
• Facilitate weekly staff meetings; adjust team members/ family member behavior
• Develop an exit plan for founder

Results

• Armed Board with issues fully identified and specific inquiries for information at the next Board meeting
• Identified inadequate accounting, use of funds, employee practices
• Replaced CEO to manage Turnaround