Lately I have been inspired by a person that makes a difference in other people's lives by empowering ordinary individuals and transforming them into extraordinary workers.
Harsh Shah, Senior Executive at Vantage Performance, has a passion for cultural transformation and as part of a turnaround process he includes a strong focus on empowering everyone on how to make a difference.
By that I mean, Mr Shah "listens big" to ordinary workers that have been working almost all their lives for that same company, dedicating their lives for that same employer. Mr Shah believes that those workers have and are the answer to most of his questions of what is affecting the performance of businesses.
Mr Shah also says that by "listening big" those employees that most of the time never have a chance to speak up start to feel empowered and engaged in this new future being created by the turnaround manager.
He points to the fact that a turnaround process can be shortened by inspiring ordinary workers to become leaders of their departments and example to others in the whole company.
It is quite interesting to think when one can inspire others and others inspire everyone.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Profit Improvement & Turnaround Specialists
www.vantageperformance.com.au
02 July 2009
The Art of Inspiring Ordinary People into Extraordinary Workers
23 June 2009
80/20 RULE
Believe it or not but eighty percent of the sales volume is often generated by twenty percent of your whole line of products.
That gives an insight and a sense of urgency to reevaluate your line of products offered and cut it down to a sustainable level. After evaluating which products belong or not to the 20% group, you can shift your energies and focus on the right product lines.
Keep in mind that this is only a process to help improve efficiency, productivity and reduce waste.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Profit Improvement & Turnaround Specialists
www.vantageperformance.com.au
Key Elements To Accomplishing a Turnaround
1- Board and Senior Management to confront the facts of the distressed situation and to act on it drastically
2- A viable core operation that can provide sufficient cashflow through the turning around of the company
3- Key Financiers and stakeholders support during the initial stages of the corporate recovery
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Profit Improvement & Turnaround Specialists
www.vantageperformance.com.au
02 June 2009
Taking time to “stress test” your business could be the difference between survival and going under
Media Release
The global financial crisis has dramatically increased the speed at which business conditions can change, forcing astute business leaders to rely more than ever on risk management strategies to protect their businesses.
Turnaround specialists Vantage Performance are regularly seeing evidence of companies being sideswiped by a major change to their business.
Vantage Performance’s managing director, Michael Fingland, said because many companies start to work on the problem after becoming aware of the results of the change, by the time they have come up with potential solutions the impact has caused serious damage to earnings, cash flow and the overall viability of the business.
“Regardless of the position your business is in, it’s essential to be undertaking detailed financial modelling and "what if" scenario testing to gauge how various sudden changes in market conditions will affect your business and more importantly, what initiatives management can deploy to combat these challenges,” Mr Fingland said.
The key to surviving the current economic downturn
He said all organisations should be placing a focus on stress testing their business.
“It’s all about analysing base case and worst case revenue, margin and working capital scenarios in the current climate. Companies across Australia and overseas have engaged in stress testing to help them decide on a range of initiatives in case market conditions deteriorate any further,” he said.
Mr Fingland said business stress testing was an area of growth for Vantage Performance, because companies want to ensure they have a totally independent and objective view when analysing the results.
“Independence and objectivity is even more important when it comes to devising the various strategies to restore earnings and cash flow,” he said.
The benefits of stress testing include:
• Enabling a business to react quickly if conditions change suddenly
• Forcing a business to ask ‘what if' and creating strategies to deal with given scenarios to minimise risk and maximize opportunity
• Providing clarification around short to medium term capital requirements
• Placing management in a stronger position if they need to negotiate with financiers by showing they are prepared for and able to handle challenges
• Increasing the confidence of key stakeholders
• Minimising stress on the business when the tough decisions have to be made
• It will provide management with an advantage over their competitors
Mr Fingland said rigorous stress testing has enabled organisations such as Brambles and Qantas to move quickly when market conditions suddenly changed.
“When yields slumped more than expected in March 2009, Qantas quickly slashed forecasts and initiated a range of dramatic measures to reduce operational costs. It is this ability to rapidly respond to change that enables their survival,” he said.
Some of the key questions posed in an effective stress testing program include:
1. What is the new breakeven level for the business and how does it change from the previous level?
2. What is the impact on revenue and earnings if you lost a major customer?
3. If customers are demanding lower prices, what is your tipping point and are you prepared to lose customers in order to maintain earnings? What changes will you need to make to your cost base to match the new lower revenue base?
4. How is cash flow impacted if debtors take an extra 10 days on average to settle their accounts?
5. Could there be a breach of banking covenants and if so, how will you respond to your financiers concerns?
6. What changes will you require to your banking facilities and what would be your banks attitude to an increase in lending, if required?
7. Are staff cuts needed and how will you deal with this (4 day work week, pay reductions, retrenchments)? Do you have the cash flow to fund redundancies?
8. What overheads will you reduce and what capex plans need to go on hold to preserve cash?
9. What non-core assets could be sold to reduce debt/provide additional cash flow?
10. Are sales or production levels too low to remain viable and would a merger or strategic partnership be needed to maintain critical mass? Who would you approach?
11. What plans do you have to meet ATO requests.
Stress testing enables management to act nimbly when unexpected changes happen. This means that management can make prudent, sometimes lifesaving decisions very quickly.
“Those businesses that are able to adapt to change are the ones that will prosper in the future,” Mr Fingland said.
Vantage Performance is a market leading “hands on” advisory firm specialising in improving performance and executing corporate turnarounds. Working with underperforming companies or those in financial distress, we quickly identify problems and implement proven strategies to improve the long term sustainability and value of a business.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Michael Fingland
Managing Director
Vantage Performance Team
Profit Improvement and Turnaround Specialists
www.vantageperformance.com.au
17 March 2009
How to Produce Results in a Downturn
A general question is often coming up on dinner tables, network meetings, social functions, which is how to produce results in a Downturn? Results are basically the consequence of a particular action, operation, or course; it is the outcome of your actions.
How many of you believe that to turn a company around is a matter of implementing controls over your costs?
I imagine that most of you would agree that if you are able to implement scorecards, KPI's, financial measures results would consequently start to appear.
Believe it or not, there is more to this formula. There is a key factor, a human factor. Financial measures will be part of the going forward strategy although without a leadership presence to engage, empower and energize your team, results will slowly disappear again.
It is quite clear that performance measures are important and critical, but having a dysfunctional culture will stop and hold your strategy of being implemented effectively.
If you are jumping on a new assignment, make sure to leave behind any distrust or internal divergences before delivering the strategy to the future. A team that holds the same objectives will absorb the new initiatives faster and results will start to pop up.
Our Vantage Performance Team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance
Profit Improvement and Turnaround Specialists
www.vantageperformance.com.au
04 March 2009
Management Blog
Good Day Australia,
I have been following the Management Blog which have some interesting posts and reviews. The blog features articles and posts from around the world on management and leadership, innovation, strategy, marketing, and other business topics.
The Blog is actually managed by The Australian Institute of Management (AIM) - Australia's largest professional body for managers which seeks to grow management and leadership excellence by supporting, developing, promoting and practising the profession of management at all levels.
Check it out. Below is the management blog link.
http://www.managementblog.com.au/
Regards,
Pedro Bueno
Vantage Performance
www.vantageperformance.com.au
Turnaround Management Specialists
20 February 2009
Business Cycle
"The business cycle is the repeated but unpredictable fluctuations in economic activity measured by changes in real gross domestic product (GDP) and other macroeconomic variables." (McTaggart,Findlay & Parkin 1995)
A business cycle comprises of four phases: BOOM, RECESSION, DEPRESSION AND RECOVERY.
Those organisations that do not take into account the business cycle are more vulnerable to economic recessions.
Organisations that understand and access the level of risk of new projects and fully explore the possibility of negative or zero return on the investment are more likely to be successful in the long run.
Our Vantage Performance Team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance
Profit Improvement and Turnaround Specialists
www.vantageperformance.com.au
10 February 2009
Is This Possible to be Achieved?
Once again I decided to share some experience that I have gained over the past few months. Most of us have the tendency to create, maintain or add barriers towards our goals, targets, hopes and beliefs.
If you have a list of things to complete, achieve, do or fulfil; and I ask what's holding you back from doing those things? I guess many would say: that's just a dream, too difficult, don't have time or its only a thought...no way, its out of my league, above my expectations.
Well, that's not true. You have just created a barrier and this barrier is preventing you from reaching it. What's the next question: How can I remove this barrier then?
That's when you start thinking in a constructive way to achieve goals, complete tasks and leading a company towards the right direction. Being a manager do not let fears, second thoughts or barriers to paralyse your productivity.
Managers must think on how can we do it or how can we achieve it and what's stopping us from it. Barriers can be added, but barriers can also be removed.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance
Turnaround Management Specialists
01 February 2009
"Who Moved my Cheese?"
I read this quick, easy and interesting book over the weekend and thought of sharing some of the main ideas.
The book is called Who Moved my Cheese by Dr. Spencer Johnson, from the best-selling author The One Minute Manager.
"The Handwriting on the Wall"
- Change Happens
- Anticipate Change
- Monitor Change
- Adapt to Change Quickly
- Change
- Enjoy Change
- Be Ready to Change Quickly and Enjoy it Again and Again
Noticing small changes early helps your business adapt to the bigger changes that are to come. If you or your business do not change, your business can become extinct.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
www.vantageperformance.com.au
Turnaround Management Specialists
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