Setting Restructuring Goals and Reverse Engineering a Company

David E. Vance ()
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David E. Vance: School of Business Rutgers University

Chapter Chapter 2 in Corporate Restructuring, 2009, pp 19-28 from Springer

Abstract: Abstract Restructuring will be more orderly and quicker if a new CEO or turnaround team designs large scale goals for a company before assigning more detailed and specific restructuring targets. A business model can be developed to help reverse engineer specific performance goals for elements of a company. Such goals can be used to allocate responsibility, evaluate success and allocate scares restructuring resources. Performance goals must be realistic. Goals substantially better than those achieved by a company’s best competitors may cause staff and management to give up rather than stretch. On the other hand, goals stated in the context of competitor performance may be seen as a call to action. Sales is the least predictible element of any turnaround plan. Assuming a company can grow its way out of trouble is unrealistic. Even the best sales plan contains some uncertainty. That uncertainty should be recognized and can be built into the restructuring plan.

Keywords: Business Model; Reverse Engineering; Lower Tail; Financing Cost; Actual Sale (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-01786-5_2

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DOI: 10.1007/978-3-642-01786-5_2

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