Thought Piece

We have always had that 'know when to go' principle as part of our company culture. We make it clear that we enter your business on a temporary basis, do what we were invited to do and then leave. But as Nick Lieberman can tell you, we can sometimes be around for longer than we or the client first envisaged. And while it breaks our golden 'know when to go' rule it is one of the highest client compliments to be asked to stay or be invited back to do more.

In Nick Lieberman's case, he has recently completed his third major project for a client over a two year period with each assignment running consecutively. Nick is a highly qualified, experienced and powerful Project Manager and was first assigned to this particular FTSE 100 client to work on a three-month Planning and Efficiency Programme at their Shared Service Centre (SSC). After overseeing the Transition Plan and designing the future shape of the streamlined SSC, the work was handed on to an incoming SSC Director. Impressed by Nick's results, the client then asked him to become, Interim Head of System and Application Support.

The task there was to drive a newly formed support function for the SSC, managing a team of fifteen, turning what had previously been a group of individuals performing disparate function into a coherent group with a single vision and working to agreed formal Service Level Agreements (SLAs) within the SSC. This took a further eight months.

When that task was complete, Nick again, willingly handed over the reins and prepared to leave. But barely had that assignment finished when the client asked Nick to work on another key project for the SSC. The financial system of a subsidiary needed to be transferred onto the same management accounting and financial reporting platform as all the other parts of the group.

We're pleased to say that that project was also completed in time and under budget (yes it does happen) and perhaps all the more remarkable as halfway through the project the goal-posts were moved substantially. The group structure changed and this caused a massive shake up to the reporting structure with a consequential knock-on effect for the finance function. But Nick took it all in his stride, taking on the work of consulting with the relevant departments to ensure the required changes went ahead, ensuring all the blueprints were correctly and successfully updated. This was achieved within the original timeline which for statutory reporting purposes could not be shifted.

These were three substantial projects for the company, part of a larger assignment which Peter Charles managed and completed, all vital for the reshaping of this major business. For Peter Charles there were many pleasing aspects but being asked to carry on working for a client is a huge testament to the knowledge, skills and attitude of our team as a whole and individual members such as Nick. As long as we're being useful and productive we're always happy to stay at the party.

Banks are not charities. But they do calculate the lifetime value of the customer and they understand the reputational risk to themselves of the slash and burn exercises they are sometimes accused of.

That brings us to the role of the banks, so often the largest creditor and certainly the one with the most intimate knowledge of how a company is faring. We all love a stereotype and the heartless, faceless bank pulling the plug on sound businesses over a minor blip sits deep in the business consciousness. But not all banks fit this caricature. "We want to work with management of a business facing difficulties to help identify the issues and provide solutions to get them back on track," says a senior manager with a leading retail bank. "We can make the most impact when the problems are identified early. We are keen for management to be open with us."

Banks are not charities. But they do calculate the lifetime value of the customer and they understand the reputational risk to themselves of the slash and burn exercises they are sometimes accused of. Most solutions to business difficulties involve access to more funds and/or different products (hedging, leasing, factoring) and that all adds up to continued and profitable involvement for the bank.

A Repositioning Turnaround may mean divestment of a troublesome subsidiary. It may mean embarking on (yet another) cost-cutting exercise, including turning away revenue opportunities if they are not of a sufficiently high margin. It most certainly involves a first step of getting an impartial and pragmatic overview of what the problem actually is, from Turnaround Professionals who also know the kind of language with which to talk to banks. The moment you take this kind of decisive action, you're likely to discover that there's no crisis, no drama, only urgent action that must start now.

Peter Charles 2010