Climate change producing unusual rains and floods in Ecuador gave me insomnia and an opportunity to write, very early, about a fascinating concept turnaround management (change management or restructuring).

Turnover Management it is a process of corporate renewal and reinvention. On the way to the transformation of the company, I will convey to others the experiences and strategies used in the reinvention of businesses with difficulties while creating value for clients, employees, suppliers, the state; and shareholders. In order to create value, a company must have a viable business strategy for its target market and understand how it compares to the competition, through SWOT analysis and Porter’s forces.

In company restructuring processes, I advised or managed new companies (startups), small and medium-sized companies and large companies, which was essential to determine whether they had operational or economic problems.

Silicon Valley Bank, lessons learned

Ecuador already has seven products with a designation of origin: Miske has received the certificate

By analyzing the financial reports, we will know whether the company has these problems, whether its business indicators are better or worse than the competition. If the problem is economic, we will analyze – between periods – the profit and loss account, operating cash flow; and a report on changes in cash flow, classified into operating, investing and financing activities, identifying new opportunities to improve profitability.

In the technological business for online ticket sales, the business strategy did not succeed because a good market study (demand) was not carried out, i.e. the use of appropriate sales channels and a better understanding of the customer. In this case, we recommend changing the strategy towards other segments and conducting a study of customer preferences.

Private companies and industries demand respect for the institutional framework and the achievement of minimum agreements

For a large transportation service company and shopping center, highly indebted and with large accumulated losses, we applied financial reengineering, improving the operational situation; then we worked on the economic problem, reduced costs, increased revenues with technological applications and applied market prices in the shopping center. The company’s profitability improved in twelve months.

In traditional commercial business, we found that there are operational and financial problems. We quickly cut unnecessary costs, shifted the culture to a culture of operational integrity, cleaned up the balance sheet accounts, improved customer service, established internal controls, implemented new corporate governance; and in six months it recovered its profitability to focus on a new business strategy with digital applications.

The world of artificial intelligence, constant changes, unpredictable events due to wars, climate change, high interest rates, social protests and the effects of global recession, requires innovations that use generated internal data, digitally transform companies and act quickly. they do not lose value for society, employees and shareholders. Turnover Management It also applies to state-owned companies, such as Petroecuador, IESS and EMCO. (OR)