Archive for the “Turnaround Management” Category
Posted by Dr. Earl R. Smith II in Advisory, Turnaround Management, Venture Capital, tags: adviser, advisory board, angel investor, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, investing, investor, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management, Venture Capital
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
I want to state at the very beginning that most angel investors I have worked with do not fall into the categories that follow. For the most part, they are honest, professional and dedicated to helping their portfolio companies thrive. To the extent that they have foibles, they are no better or worse than the rest of us. This article is about that small percentage of angel investors that can really give you heartburn and seriously damage your chances of building a successful business. Here are some of the types that you should avoid. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Advisory, Turnaround Management, Venture Capital, tags: adviser, advisory board, angel investor, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, investing, investor, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management, Venture Capital
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
There is a tendency among entrepreneurs to chase money wherever they find it. The pressure to find the financial resources so necessary to build a business can be over-mastering. Most of the time the partnerships which form between founders and angel investors are productive but, in a few cases, I have seen it turn very destructive. Companies that should have realized success have been held back by investor partnerships that have severely limited their potential or, in some cases, doomed them to failure. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Advisory, Governance, Turnaround Management, Venture Capital, tags: adviser, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, investing, investor, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
I am sometimes asked by investors to ‘parachute’ into a company and give them a quick assessment of conditions and possibilities. Most of the time, the company has been under-performing. Frequently the money that the investors provided has been spent and they are facing the need for follow-on funding. The investors want to know if additional investment is prudent. Generally I am asked to opine on four options: 1) shut it down, 2) sell or merge the company, 3) overhaul the team and value proposition and re-launch, or 4) make an additional investment and stay the course. My first steps are to prioritize those options and present a quick summary of the strengths and weaknesses of each. I also focus on the threats and opportunities that will most likely present themselves. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Advisory, Turnaround Management, Venture Capital, tags: adviser, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
Most M&A transactions fail to close for reasons that do not relate to the structure, timing or fairness of the deal. In fact, the emotional state of the principal seller is a far more potent factor than any thing that the lawyers or accountant might focus on. Increasing the chances of an actual closing involves helping the seller come to terms with the implications of the decision to sell.
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One of the most difficult decisions that a founder faces is when and to whom to sell his interest in a business – a business that he might have spent a considerable part of his adult life building. It is a decision that is often made and unmade many times along the way. Frequently and after much work and discussion, a founder will end up deciding not to sell. The result is lost time, resources and reputation. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Advisory, Blog, Turnaround Management, Venture Capital, tags: adviser, advisor, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
Sometimes management teams lose focus on the fact that the principal goal of business involves producing increasing revenues. Sometimes they get caught in the trap of incessantly talking about increasing revenue.
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I recently facilitated an all-hands session for a company. We were focusing on the results of an extended process of reorganization and re-resourcing. Both of the efforts had been very successful and the company was poised to move forward. However, as the meeting got under way, I sensed a general reluctance to moving on to the next phase – implementation. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Turnaround Management, Venture Capital, tags: adviser, advisor, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
In the first part of this series, I described the initial triage steps that I took after analyzing the data provided by the assessments had. At the same time that we were working with the CEO and senior team, we began to develop a plan for the first stage of the turnaround effort. Here is the lost of challenges that we had identified: Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Turnaround Management, Venture Capital, tags: adviser, advisor, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
I recently completed a turnaround engagement with a mid-market company. The effort was successful and the story of the turnaround was typical of many.
My initial foray into any company identifies those threats that are likely to bring it down. I refer to this as triage. In this case there were a range of threats. The first that needed attention was the management style of the CEO. She was imperious and aloof. That approach had permeated the entire senior team. It was clear from the beginning that there was a divide between senior management and the rest of the company – that was causing both conflict and inefficiency. I chose to begin the engagement by working closely with the CEO. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Turnaround Management, Venture Capital, tags: adviser, advisor, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
In business, as the old saying goes, in business cash is king. This is particularly true for companies in distressed situations. A cash flow statement is a snapshot of a company’s situation and a ‘reality check’ measure of its ability to meet its obligations to creditors and investors. Cash flow projections are a description of the company’s ability to continue doing that. Every experienced turnaround professional begins with a detailed survey of the cash and cash flow situation. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Turnaround Management, Venture Capital, tags: adviser, advisor, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership development, leadership styles, Life Coaching, management assessment, non-profit, nonprofit, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
In a prior article, I described how management of the balance sheet is important in efforts to turn a company around. In this one, I would like to mention a few issues that affect the income statement and describe managing them will advance any turnaround efforts. Read the rest of this entry »
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Posted by Dr. Earl R. Smith II in Turnaround Management, Venture Capital, tags: adviser, advisor, advisory board, board of directors, CEO, chairman, coaching, consulting, director, Executive Coaching, Governance, Leadership, leadership assessment, leadership development, leadership styles, Life Coaching, management assessment, Personal Growth, spirituality, turnaround, Turnaround Management
Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com
A good turnaround plan attacks problems on several fronts at once. It also recognizes that some issues need to be resolved prior to moving on to others. One of the first places that any turnaround effort should focus is on the company’s balance sheet. Many companies, which find themselves in difficulty, have evolved balance sheets that are ‘upside down’. By that, I mean a growth in liabilities and a reduction in assets. Read the rest of this entry »
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