The document summarizes several methodologies used by Moore Fleming for corporate turnaround, including:
1) The 5 Point Diagnostic Plan which includes creating a window of time, planning the turnaround, implementing, providing after care, and reviewing.
2) Change4, a management change program designed to deliver competitive edge, sustainable growth, survival, and profit improvement.
3) Succession Planning which considers ownership, management, and family using a three-circle model.
4) Access to Finance which aims to prepare businesses for survival, recovery, becoming investment ready, minimizing investment needs, and maximizing returns.
3. The Business Model It is an integrated model as each model may use common methodologies. Turnaround Succession Planning Change4 Access to Finance
4. Turnaround – The 5 Point Plan Our approach has been developed over about 20 years. It includes a Diagnostic Process and Business Recovery Model that were designed by Harry Moore and partly sponsored by the UK government. He was given several UK Government grants to both develop and deliver the model, whose output was 135 businesses saved. Diagnostic (1) Create a Window of Time (2) Plan the Turnaround (3) Implement (4) After Care (5)
5. Diagnostic – Entrepreneurial Style By segmenting we diagnose. For example, a Lifestyle business is typically family-owned or owner managed, was founded on the basis of an idea or a product and its main focus is to provide for the family and successive generations and to take as much money as possible out of the business. It will have high value but its growth will be determined by the willingness of its owners to re-invest. Accordingly, we can quickly identify issues that are generic to that style of business by placing them in the above matrix. Lifestyle Developer Employee Builder Growth Value Entrepreneurial style
6. Diagnostic – The business life cycle Growth Consolidation Crisis Management Style Entrepreneurial Structured Turnaround Life cycle stage It is important to understand where the business is in terms of its life cycle. Each stage requires different management skills. Our methodology determines where the business is in terms of the above life cycle and more importantly whether the structure, personalities and skills of the management team are appropriate for that stage.
7. Diagnostic – Potential for Turnaround Our Diagnostic Process reviews market positioning, product sustainability and life, capability of Information Systems, cash flow and most importantly the strength and skills set of the management team. If the business is severely distressed this may have imposed stress into the management team. Denial Blame others Blame Self Despair Confidence returns Planning Results Time
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12. Family businesses make up more than 60% of all European businesses. Succession is a major issue and many will fail because of the lack of a Succession Plan. Succession Planning Ownership Management Family We use the accepted standard of the three-circle model. All need to be considered when introducing change
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14. Contacts Harry Moore [email_address] +44 7843 009887 www.moorefleming.co.uk http://moorefleming.blogspot.com