One of the first steps in a turnaround and in profit enhancement is setting your short- and long-term objectives. It seems almost ridiculous to ask what the objective of the effort should be when a company is underperforming or bleeding gobs of red ink. It’s like asking a seriously ill patient what he wants when he checks into the hospital. “To get better, of course,” is what he’d probably say. Likewise, the client usually looks at me in disbelief and says, “Stop the bleeding!” or “Fix the problem.” However, the “fix” is conditioned upon the real objectives, which may be one of four things:
Improve profitability and grow the current company long term.
Improve profitability and prepare the company for sale.