centrate on its core competence. During bad times, you need to concentrate even more as resources are scarce. If possible, sell away all non-core businesses. In desperate turnaround situations, your focus should be as sharp as laser. You cannot afford to be hazy, sloppy or uncertain as these will impinge on your limited resources. DivestRestructuring is not a slash-and-burn exercise, but one that calls for the surgeon’s skills. It does not require the use of a parang or long knife but the surgeon’s lancet. The restructuring process may involve re-engineering, downsizing, rightsizing and delayering. These all require the use of the same basic techniques and approaches.

During the restructuring exercise, remember to use the 4 Cs.

Communication: The manager needs to communicate personally the restructuring plans truthfully to the staff. Similarly, a doctor does not delegate to a nurse the task of briefing the patient about his ailment and treatment. You need to communicate the restructuring plans personally. Regular communication with all the staff, shareholders, board members, customers and business associates is necessary to get their buy-in and support for the restructuring plan. It is also very important that whatever you promise, you need to implement and deliver. There are many anxious and impatient people waiting to know the progress and outcome of the restructuring programme. You need to keep them duly informed. You need to “walk the talk”, otherwise it is like shouting at a dead body to leave. The dead body will not leave but your friends may.

Concentration: The surgeon operates on only one patient at a time. Similarly, the sick company needs to concentrate on its core competence. During bad times, you need to concentrate even more as resources are scarce. If possible, sell away all non-core businesses. In desperate turnaround situations, your focus should be as sharp as laser. You cannot afford to be hazy, sloppy or uncertain as these will impinge on your limited resources. Divest

During the restructuring exercise, remember to use the 4 Cs.

Communication: The manager needs to communicate personally the restructuring plans truthfully to the staff. Similarly, a doctor does not delegate to a nurse the task of briefing the patient about his ailment and treatment. You need to communicate the restructuring plans personally. Regular communication with all the staff, shareholders, board members, customers and business associates is necessary to get their buy-in and support for the restructuring plan. It is also very important that whatever you promise, you need to implement and deliver. There are many anxious and impatient people waiting to know the progress and outcome of the restructuring programme. You need to keep them duly informed. You need to “walk the talk”, otherwise it is like shouting at a dead body to leave. The dead body will not leave but your friends may.

Concentration: The surgeon operates on only one patient at a time. Similarly, the sick company needs to concentrate on its core competence. During bad times, you need to concentrate even more as resources are scarce. If possible, sell away all non-core businesses. In desperate turnaround situations, your focus should be as sharp as laser. You cannot afford to be hazy, sloppy or uncertain as these will impinge on your limited resources. Divest

personally. Regular communication with all the staff, shareholders, board members, customers and business associates is necessary to get their buy-in and support for the restructuring plan. It is also very important that whatever you promise, you need to implement and deliver. There are many anxious and impatient people waiting to know the progress and outcome of the restructuring programme. You need to keep them duly informed. You need to “walk the talk”, otherwise it is like shouting at a dead body to leave. The dead body will not leave but your friends may.

Concentration: The surgeon operates on only one patient at a time. Similarly, the sick company needs to concentrate on its core competence. During bad times, you need to concentrate even more as resources are scarce. If possible, sell away all non-core businesses. In desperate turnaround situations, your focus should be as sharp as laser. You cannot afford to be hazy, sloppy or uncertain as these will impinge on your limited resources. Divest

he progress and outcome of the restructuring programme. You need to keep them duly informed. You need to “walk the talk”, otherwise it is like shouting at a dead body to leave. The dead body will not leave but your friends may.

Concentration: The surgeon operates on only one patient at a time. Similarly, the sick company needs to concentrate on its core competence. During bad times, you need to concentrate even more as resources are scarce. If possible, sell away all non-core businesses. In desperate turnaround situations, your focus should be as sharp as laser. You cannot afford to be hazy, sloppy or uncertain as these will impinge on your limited resources. Divest

centrate on its core competence. During bad times, you need to concentrate even more as resources are scarce. If possible, sell away all non-core businesses. In desperate turnaround situations, your focus should be as sharp as laser. You cannot afford to be hazy, sloppy or uncertain as these will impinge on your limited resources. Divest away non-core businesses so as to concentrate on the focused areas. Cost cutting: It is an important antidote or effective remedy to administer especially in desperate situations. Cut costs to the bones without injuring the muscles and organs. If circumstances permit, amputate non-profitable businesses rather than try to bandage and apply stitches. Investigate into cutting your fixed and variable overheads by outsourcing, downsizing, delayering and across-the-board salary cut. Every cent saved or cut goes right into the bottom line.

Cash flow improvement: Cash flow is your lifeblood. Slipping into losses may give you a migraine but a sudden shortfall in cash flow will cause immediate massive heart attack. Try to reduce your inventory, purchases, perks, credits to customers, outstanding debts and related items without hurting the company further. Ensure that your receivables are promptly collected. Negotiate with your creditors for extension of the credit limits or source for more credit lines or more time to pay back the debts. You need to do whatever you can during the financially tight situations to quickly improve the cash flow position.

Typically in a major restructuring exercise, the timing is extremely short for you to deliver the positive results. There are many things to do and remember. However, you need to prioritis