The Touchstone Methodology
Touchstone has a proven, five-step method for turning around underperforming and distressed companies. Each stage is important to the process.
1. Situation Analysis
- Is there a viable core business?
- Is there enough cash for a recovery?
- Are sufficient managerial resources available?
- What is the strategy for ensuring long-term profitability and health?
- Determine plan for survival.
2. Management Change
- Ensure capable management is in place.
- Replace management who will impede the turnaround process.
3. Emergency Action
- Ensure short-term survival.
- Provide opportunity for strategy to be implemented.
4. Business Restructuring
- Restructure business to secure long-term survival.
- Provide foundations for long-term strategic leadership position.
5. Return to Normal
- Secure strategic leadership position and future profitability/health.