Red to Black in 30 Days: Develop

Phase two is the Develop phase; This phase is the actionable steps in the turnaround process. Phase one gave us the ability to take immediate action steps but this phase is for the long-term effect of the complete turnaround.

We will begin with an assessment which can be broken into 3 key areas of focus: People, Operations/Procedures, and Finances. 

People: Some may find this odd, but I begin asking the practitioner about his practice. What is your purpose? What is your mission? Who do you serve? These questions not only matter in the big bigger of running a successful business, but they give a good indication just where the practitioner wants to be or if he/she are clueless. Next, is the team. Who are the key employees? Why? What is your business model? (Do the employees know it?)

Operations/Procedures: Some call this an operational audit- either way, it's looking at the way things get done in the business. Specifically, processes, customer service (especially from the customer service point of view and competitors benchmarks. Another way to look at the business is by MAPing. This stands for marketing, accounting, and production. The results are the same; you want to get a good indication of what is happening in the business.

Finances: Lastly, reviewing financial statements and getting a sound audit. It's amazing how much you can learn from a thorough analysis so allow this section of the turnaround process to have the time it takes. There are two types of reviews that can be used here; Trend Analysis or Indexing.
Trend Analysis: Financial statements change over time. Anomalies and changes in procedures can become evident when you come periods side by side.
Indexing: Using ratios and financial indicators identify strengths and weaknesses that wouldn't be obvious otherwise. 

At the end of the assessment, the following information should be pulled together.

• A clear description of the practices' situation.
• A decision if the turnaround process is doable and the commitment is there.
• A list of recommendations that be quickly implemented in order to stabilize the practice.

The assessment step is critical and cannot be overstepped if a truly successful business plan is to work. Most businesses can become viable upon making significant changes which will be further explored in the planning phase of the turnaround processes.