Managing Through A Drawn-out Recovery
This interview with Michael Fingland is from www.businessessentials.com.au
Because governments stepped in with massive stimulus packages, the recent downturn has not been typical. Normally, more businesses would have failed, with the stronger ones leading a rapid recovery. But, says Michael Fingland of Vantage Performance,because many have survived but still have debt on their books, the recovery this time is more drawn-out. And — as managements become worn out from coping with crisis after crisis and run out of ideas — companies are still running into trouble. This is particularly true in sectors not benefiting from the strength of the mining industry, he says. Whether a failing business can be turned around will depend on its point of difference in the market and how long it’s been in distress.Rapid growth can also be a problem — too many businesses don’t have the systems in place, or the management skills, to cope — they become victims of their own success.