In Times Of Trouble, Do Not Become Schizophrenic But Let Your Focus Be Emphatic

By: Mike Teng
Submitted: 2007-01-17 15:31:49
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Schizophrenic patients suffer split personalities, characterised by withdrawal from reality and behavioural disturbances. Management needs to have very sharp and emphatic focus rather than become schizophrenic.

It does not take very long to mess up a company especially when the focus of the key management is muddled. Just a couple of months should do the job. All it takes is for you take on some loss-making projects and contracts, neglect collecting your debts and allow excess inventory to build up. You need to remain even more level-headed during problematic times.

The turnaround manager needs to be very focused especially during the surgical stage. The specialist is involved at several organisational levels, both tactical and strategic. At a tactical level, the specialist needs to focus on cash flow improvements and preservations, establishing open communications with all stakeholders, negotiating with creditors and initiating total financial management.

At the strategic level, the specialist needs to focus his mind on human resources, establishing profitability growth, asset analysis, developing alternative financing strategies and increasing shareholders’ values.

Without such focus, the danger is that the turnaround manager is forced to react to problems by focusing on the ramifications of the crisis and passing the buck, blaming others and protecting the culprits.

During the tough times when the share price of the Singapore-based company Creative Technology has dropped by 80% from its peak in 2000, its CEO, Sim Wong Hoo said: “This is an exciting time. We have much more energy than we had three years ago.” He sees upsides to the dotcom collapse. “It was too easy money and I think things are easy come, easy go,” he says. “Now when everybody goes back to basics, the real strong players will surface.” This Singapore’s icon for creativity and entrepreneurship does not succumb mentally to the tech downturn. In fact, he appears more energetic and optimistic than ever before. That which does not kill him makes him even stronger.

Bob Woodward has testified in his book, Bush at War that Bush has risen to the occasion when confronting the aftermath of the September 11 al-Qaeda attack. According to Woodward, Bush calmed his colleagues’ nerves. “You know what? We need to be patient.” Bush said. “We have got a good plan. Look, we are entering a difficult phase.

The press will seek to find divisions among us. They will try to force on us a strategy that is not consistent with victory. We have been at this only 19 days. Be steady. Do not let the press panic us. Resist the secondary guessing. Be confident but patient. It is all going to work.”

Tony Blair the Prime Minister of United Kingdom was able to focus despite his wife Cherie’s legal case, the Afghanistan war, the Saddam Hussein, Jacques Chirac. Charged with running the country and playing a significant international role, he remains somehow undistracted by family life and pressing domestic concerns. If you want to be a good turnaround manager, you have to be totally focused and immersed in what you are doing.

Warren Buffet, the second richest man in the world also focused in his investment strategy. He only invested in businesses that he is familiar with. He focuses on a few stocks, know about them and heavily invest in these stocks. To minimise risks, he encouraged investors to focus on a few stocks, there is no need to be an expert of every company, but invest in businesses you know for the long term.

In bad times, all the more you must focus clearly on your goals. You cannot afford to allow your focus be muddled or your energy be dissipated.

Article source: Expert Articles