Dr. Earl R. Smith II

Management change can begin only when company leaders have decided that changes are necessary. One of my first objectives is to convince them that certain changes need to be made right away. Most CEOs, Chairmen or company presidents do not relinquish power easily. As a turnaround specialist, I represent the need to do so - and quickly. Triage means seeing to those wounds that directly and immediately threaten a patient’s life. Many time there is not a lot of time for social niceties - particularly when management has been at least partially the reason that the company has become distressed. However, the welfare of the patient is paramount and new power-sharing arrangements need to be put in place.

The motivation for management change must come from the board of directors and the senior management team. I have found myself in situations that seemed more like a parallel reality than a distressed company. Many board members and senior team members seemed to be in a state of denial. Even if incumbent mangers are willing to implement changes in an effort to turn a company around, they often lack the credibility or objectivity to do so because they have either caused or contributed to the problems in the first place.

All of these impediments need to be cleared away so that the company can receive the treatment is so desperately needs. Changes tend to come quickly during this stage. Overhead is reduced, value propositions are narrowed, the range of product/service offerings is curtailed, staffing is reorganized and often reduced and much more. The purpose of the triage is to stop the bleeding and give the patient a chance of survival. It is also go get the company moving in a new and potentially more productive direction.