As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower’s financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that thThe doctor faces the same problem as the turnaround manager in whether he should tell the patient truthfully about the state of his ailment. Oftentimes, it is better to tell the patient the truth so that the he can prepare himself or herself mentally, psychologically and physically. There are exceptions when it may be better to conceal the truth from the patient. In such cases, the patients may not be mentally strong enough to cope with the ramifications of their ailments.

Nowadays, downsizing, delayering and outsourcing are the normal regime of corporate life. It is important to communicate honestly to the staff throughout these trying events. When dealing with difficult matters, ‘honesty is the best policy’. It is unethical to sugar coat, mislead or lie to the staff concerned. They will eventually come to learn the real situation. Any mishandling of the outcome can create distrust, sense of betrayal and loss of confidence in the management.

Thus, in the case of a sick company, it is better to recognise this fact, tell the truth and relevant matters relating to the turnaround plans. By concealing the truth and going about business as usual, one falls into the denial trap. Be truthful and do not hide the truth as people are not against bad news per se. Some of the staff would have already sensed that something is amiss, just as a sick person is aware that all is not well with his body. Most staff only want to see quick results in the turnaround and the uncertainty to be cleared so that they can move on with their lives. Hence, after communicating the truth, the turnaround manager must ensure that he has a plan to rectify the problem and implement some tough measures and unpopular actions.

The idea is to acknowledge the truth and quickly work with the employees to administer the right medicine. Usually, the staff are the first ones to realise that the ailing company needs drastic actions to fix a difficult situation and there is often no necessity to do much convincing of the need for tough turnaround measures. Many executives are actually looking for a saviour to resuscitate the organisation.

As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower’s financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that the

he normal regime of corporate life. It is important to communicate honestly to the staff throughout these trying events. When dealing with difficult matters, ‘honesty is the best policy’. It is unethical to sugar coat, mislead or lie to the staff concerned. They will eventually come to learn the real situation. Any mishandling of the outcome can create distrust, sense of betrayal and loss of confidence in the management.

Thus, in the case of a sick company, it is better to recognise this fact, tell the truth and relevant matters relating to the turnaround plans. By concealing the truth and going about business as usual, one falls into the denial trap. Be truthful and do not hide the truth as people are not against bad news per se. Some of the staff would have already sensed that something is amiss, just as a sick person is aware that all is not well with his body. Most staff only want to see quick results in the turnaround and the uncertainty to be cleared so that they can move on with their lives. Hence, after communicating the truth, the turnaround manager must ensure that he has a plan to rectify the problem and implement some tough measures and unpopular actions.

The idea is to acknowledge the truth and quickly work with the employees to administer the right medicine. Usually, the staff are the first ones to realise that the ailing company needs drastic actions to fix a difficult situation and there is often no necessity to do much convincing of the need for tough turnaround measures. Many executives are actually looking for a saviour to resuscitate the organisation.

As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower’s financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that th

ters relating to the turnaround plans. By concealing the truth and going about business as usual, one falls into the denial trap. Be truthful and do not hide the truth as people are not against bad news per se. Some of the staff would have already sensed that something is amiss, just as a sick person is aware that all is not well with his body. Most staff only want to see quick results in the turnaround and the uncertainty to be cleared so that they can move on with their lives. Hence, after communicating the truth, the turnaround manager must ensure that he has a plan to rectify the problem and implement some tough measures and unpopular actions.

The idea is to acknowledge the truth and quickly work with the employees to administer the right medicine. Usually, the staff are the first ones to realise that the ailing company needs drastic actions to fix a difficult situation and there is often no necessity to do much convincing of the need for tough turnaround measures. Many executives are actually looking for a saviour to resuscitate the organisation.

As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower’s financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that th

manager must ensure that he has a plan to rectify the problem and implement some tough measures and unpopular actions.

The idea is to acknowledge the truth and quickly work with the employees to administer the right medicine. Usually, the staff are the first ones to realise that the ailing company needs drastic actions to fix a difficult situation and there is often no necessity to do much convincing of the need for tough turnaround measures. Many executives are actually looking for a saviour to resuscitate the organisation.

As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower’s financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that th

As a corollary to this, it is also important to let the bank know the financial health of the company. Some ailing businesses try to hide their financial predicaments from the bankers. Most bankers are sympathetic and will try to help those debtors if they can show concrete rescue plans. The bankers will lose total confidence in their debtors if the bankers have to learn it from other secondary sources about their borrower’s financial difficulties. In such situations, the bankers may not be very sympathetic as it is deemed that their borrowers are trying to hide the truth from them.

Be truthful as the truth will set you free.