8. WHAT IS THE NATURE OF PROFESSIONAL TURNAROUND
SERVICES AND WHAT FEES ARE CHARGED ?
Many troubled companies fail because they lack management resources
that are required to perform a business turnaround. Some of these companies fail
because they are not aware of the requirements of the job, others because they
cannot afford professional turnaround services. Yes, it often costs
$600,000 to $1,000,000 per annum, or even more, to retain a qualified
full-time (and hands-on) turnaround manager for a small to medium size corporation.
There are turnaround specialists available from specialized
consulting firms who will perform some turnaround services for fees
that, in a year, total much less than these amounts, but these are part
time and /or temporary services. Indeed, they have to be at hourly rates
of hundreds of dollars. These services usually focus on preparation of
the strategic plan and initial crisis management, and sometimes include
corporate surgery.
Without belittling the importance of this work in any way, it should
be noted that it forms only a part of the turnaround process that is
required to generate "a substantial and sustained positive
change in the performance of a business". This practical
definition of turnaround signifies that the company must not only be
saved in the short run, but must also be repositioned, restructured and re-engineered
for the future –
so that its operation becomes really worthwhile for its owners for years
to come.
Obviously, the firms which provide the limited services of
initial planning and crisis management – even if they also provide
follow-up advice – cannot take responsibility for a sustained
recovery.
This responsibility can only be taken on a hands-on basis, and on the
basis of keeping this responsibility until a sustained recovery is
demonstrated. This is precisely the service that Alex Wolf &
Associates is offering.
|