1. ASSESS THE CURRENT
1.a The Market (segmentation thru: geography, sector, product, SKU):
- The Demand
- The Competition
- The Clients (B-2-B, B-2-C)
- The Suppliers
1.b The Strategy Map:
- Mission, Values, Vision (Firm Corporate Genome fundamentals)
- Strategic Analysis & Map
- Strategic Formulation (why/what/how)
1.c The Business Cycles (based on strategy map):
- The Commercial Cycle
- The Production Cycle
- The Economic Cycle
- The Financial Cycle
1.d The Organization & Design Elements:
- Task & Job Descriptions
- Structure & Capacity
- Skills & Capabilities
- Decision Making & Delegation of Authority
- Reward System & MBO
- Information sharing & ERP-based KPI Scorecard
- Budgeting Process
- Business Review & KPI’s GAP Analysis (Monitoring Process)
1.e Business actual KPI’s (metrics, margins, indexes, flow balances):
- Income Statement
- Balance Sheet
- Financial Statement
2. DESIGN THE FUTURE
2.a Biz planned KPI’s (metrics, margins, indexes, flow balances):
- Income Statement
- Balance Sheet
- Financial Statement
2.b Delta KPI performance = Future KPI Perf. - Current KPI Perf.
- Delta Work = Future Work - Current Work
- Delta Organization = Future Organization - Current Organization
- Delta Skills = Future Skills - Current Skills
2.c Stress/Sensitivity Analysis on KPI Delta Performance
- Minimum Acceptable Distressed Threshold Limit (restructuring plan still works)
- Not Acceptable Default Breakage Threshold Limit (restructuring plan breaks)
3. DEPLOYMENT & MONITORING: SUSTAIN THE FUTURE
3.a Break-down plan strategy and KPI’s metrics into operational terms:
- Economics (Revenues, Costs, EBITDA, EBIT, Net Profit A/T)
- Financials (Net Working Capital: DSO, DPO, disbursements, inventory, etc.)
- Debt Reimbursement Feasibility Outlook
3.b Benchmark all critical KPI’s objectives towards three targets:
- Base Plan Target (by Restructuring Plan)
- Minimum Distressed Target (by stress/sensitivity analysis)
- Default Target (by stress/sensitivity analysis)
3.c KPI Scorecard is structural element of Master Plan:
- Allocate Contingency Plans into Economics (reserves) based on Stress/Sensitivity Analysis
- Assign all (100%) actions listed in the Restructuring Master Plan to “named” responsibility and accountability (including contingencies)
- Assign frequency of measuring to each selected KPI (weekly, monthly, quarterly) within the Gap Analysis process
- Institutionalize the Gap Analysis Schedule for a strict and rigorous business review and action plan re-assessment (all based on DELTA’s)
3.d Go live !!!