Thinkers and Doers. What is really striking about this recession is that the Doers are waiting and Thinking! Yet bankers’ strategy is to wait and see like rabbits caught in the headlights BUT now for the first time are left holding the baby, and need the Doers! A return to basic banking is no bad thing, but there is still a requirement to manage their stake as providers of capital in the meantime. It is absurd too to generalise as each situation requires support case by case.
The “top 3 recovery favourites” are: 1. business development 2. performance excellence & the 3. right direction.
1 On business development What about the global shift in gravity to Asia? Tony Tan at GOC a £64bN sovereign fund “economies will take a long time to recover from the crisis”… “The vast deficits and lack of reserves leave them more prone to systemic risk”. …exposing the unwieldy… “We have been knifed in back on Trident says anon MOD boss”. The banks simple view of turnaround – is locally to withdraw their funding to recover their positions BUT in the process inadvertently destroy their position and whatever remains. Jon Moulton sums up the situation on a macro scale… Corporate failures are only about 25% of the 90s yet 2010 is a recession 3x the scale! At the same time HMRC debt may be called in – the estimate is up to £25Bn – but can’t be sure as government don’t tell us. Watch the generalisations.. UK has a poor manufacturing future! And finally! The thing to watch is who is doing what in a crisis; the surest route to accelerate failure is when everyone stops doing their own jobs, and or faces circumstances without the skills or experienced support. With the sensitivity of the UK to increasing inflation, increasing interest rates and cuts to the public sector – The only certainty is probably further fall in revenue? Engage the Doers…
2 On performance excellence – We find Icebreaker clients are faced with 1 of 2 of these challenges:
-Turnaround Those that immediately need money to survive, but can’t get it – icebreaker have a fully integrated project managed turnaround solution, to identify and deliver the plan for the competing stakeholders, management, bank, owner, new investor, creditors and debtors etc. We are now supported by 4 professional service firms, 3 VCs and 1 private investor, and our team some of the best turnaround and hands on practitioners in the UK. The current strength of the Banks means that they can simply start to pass these opportunities to us early to support their clients avoid an insolvency and if we can recover the position for all parties. More
-The Well Managed Corporate with money, struggling managing business as usual along with their projects, but can’t justify expenditure, so do it themselves. Often staff has been reduced, facing falling revenue or growing and struggling to meet demand, cash generation, motivation and client satisfaction being the main casualties…
-> Icebreaker partner with Emerge – many organisations are not getting the motivation from staff that they need to achieve targets.. “An analysis of over 900 firms”..” finds that 46% of organisations experienced a decline in engagement levels in the quarter ending June 2010, with a mere 30% noting an improvement”, (Executive Grapevine 2010)So what can you do to create a climate of empowerment? The driver of customer satisfaction is your staff engagement and motivation. Your company’s success and agility depends on the performance of your people. Emerge work in partnership with icebreaker clients and change leaders to engage and develop their people to create the agile culture that produces the best results, more. In these circumstances, Icebreaker provide the interim leadership to take advantage of the people and cultural change opportunity a major program presents, by delivering outstanding results from existing resource, using your own people with minimal external input.
3. On the right direction our business model focus is Right First Time our team based approach is a multiplier to support making the right decisions first time – based on hard facts and combined on-hand experience of delivering performance excellence within c.400 plcs.
Interested to know more take a look at our case studies. www.icebreakerexecutive.com
In all this uncertainty it’s oddly quiet and we could do with more business, call us well sort a pragmatic solution for you.
Tom Pickering (Icebreaker Executive CEO) firstname.lastname@example.org T: 0207 193 5518.