Business Turnaround primarily refers to the way the organization adds value in order to effect a turnaround. It is not about headcount reductions, disposing and making money out of Non-performing assets or inventory optimization or to improve short term earnings.
Business turnaround is not just restricted to the financial aspects of the company. When it gets restricted or limited to the financial aspects, human aspects, the loyalty of the employees and stakeholders gets in to back seat. Many organizations even stop paying the vendors and extended services to save a pie and to improve cash reserve. This might temporarily make the company survive but on the long run, the organization will not have loyal stakeholders who will go to any extent to support the organization in a crisis situation.
To make the organization turnaround, the following are some of the key things to be focused on.
- Ability to get to see the way the operations are done from a customer point of view.
- Identify Value-adding operations that can leverage the operations towards positive.
- Transform each and every value-adding activity and enable flow to happen seamlessly.
- Focus on making better products and creating better services with fewer resources. (This does not mean fewer manpower. It is about making manpower focus on true thinking than wasting their time for over processing)
- Link demand, supply, and production with minimal waiting time and efficiency.
- Within the process, link all value-added activities and work towards first time right results for repeated jobs.
Also, Read, How To Sustain Daily Operations In Lean Practicing Companies Through Application Of Standard Work Methodology
With the above focus areas put into action, you can realize the following advantages.
- Lead time cut down from weeks to days or hours.
- Inventory turns improvement which leads to reduced working capital.
- Increased productivity gains
- Reduced defects (not just rejection or rework).
- Improved market share.
- Improvement in ownership of team members through Total Employee Involvement.
In the case of the service industry,
- Reduction in TAT (Turn Around time)
- Improved customer satisfaction.
- Doing things the first time right,
- Optimized space
- Optimize resources
- Creating more value for the customer
Also, Read What Is The Significance Of Doing Step By Step Audit In TPM– Autonomous Maintenance Implementation.
An organization turnaround is possible only when
- Turnaround is part of the key strategy
- Top management leads the initiative.
- People transformation is facilitated.
Once you take a resolve to improve your organization turnaround, do the following.
- Re-look at your products and services and validate if it is still relevant and the customer.
- Create SLAs for your business processes and find out if this is in line with the key customers – (80% and above)
- Create SLA’s for internal customers which are more stringent than external.
- Work on creating Value Streams for each product/services and look for value-adding process/activities.
- Identify the velocity of the process – Manufacturing/service velocity.
- Identify the right people who take the responsibility for delivering the right product and services and train them in such a way that they can manage the process the way it is intended to.
- Work on the product costing in line with the market requirement. Move away from the traditional method of adding profit to your cost. Instead, work backward based on the market requirement and accordingly optimize the product’s cost to achieve profitability.
- Work on Failure modes Effects analysis to identify potential areas which can go wrong and work on the prevention mode.
- Identify suitable tools that can elevate the company. Some of them are.
- Workplace organization through 5S and Visual Management
- Lean manufacturing and services where there is repeated product purchase possible.
- Quick response manufacturing where there is made to order and special products are being dealt with.
- Integrate Total Productive Maintenance practices in the system so that it will help in improving the operations for basic stability and reliability of machines and processes.
Also, Read How to Apply Lean thinking to Information technology – IT services
Any business is possible for Turnaround. It can be through some of the proven concepts such as
- Lean factory
- Lean Hospitals
- Lean warehousing
- Lean construction.
- Lean retail and logistics
- Lean in Hospitality
- Lean in Banking services
Also, Read Delivering High-Value Healthcare Through Lean Hospitals
Seven Steps Business Transformation Systems is in the field of helping organizations in their journey of Excellence.
Our team consists of
- Lean manufacturing consultants
- TPM consultants
- Operational Excellence consultants
- Business Excellence consultants
We operate from the following locations.
- Pant Nagar
- Gandhi Nagar,
We also support our clients in Bangladesh, Singapore, Sri Lanka, UAE, Saudi Arabia, Iran, UK, USA also.
Seven Steps Business transformation systems is a member of Seven Steps Academy of Excellence specialized in Business turnaround facilitation. Our team of Business consultants is specialized in
- Business Turnaround Facilitation.
- Lean manufacturing
- Total Productive Maintenance (TPM)
- Six Sigma implementation
- Total Quality Management
- Overall organization improvement.
Our services find useful in
- Manufacturing industries
- Service industries
- Supply chain
- Healthcare services
- Construction Banking
- Facilities management
- Schools and colleges
Some of the focused industries include
- Aircraft manufacturing,
- Defense equipment production,
- Food production,
- App development
- Research organizations and
- Service organizations
Our consultants operate worldwide for online consulting.
Our regional presence in India for onsite- Gemba visit covers Bangalore, Hosur, Chennai, Mysore, Shimoga, Pune, Mumbai, Calcutta, Hyderabad, Salem, Tiruchy, Madurai, Tiruppur, Coimbatore, Hubli, Belgaum, Delhi, Chandigarh and another tier 1 and tier-II cities.