What is a Corporate Renewal specialist?

Until recently, turnaround specialists were a relatively unknown breed in the business world. However, as once-stable companies struggle to maintain profitability, the expertise of corporate renewal professionals is more in demand than ever. Rising competition, cyclical financial markets and economic volatility have created a climate where no business can take economic stability for granted.

Many large companies have turned to downsizing to improve their economic health. However, downsizing has taken its toll on corporations by robbing them of management talents. The ranks of managers groomed to assume top positions have been thinned. In addition, the volatile business environment has turned once-successful CEOs into hesitant managers who are no longer able to provide strong leadership.

Likewise, small-mid sized businesses struggle in face of increasing competition.  They may have taken on displaced executives of larger corporations who haven’t made the adjustment to the nuances and practices of the smaller enterprise.  The smaller venture, which is more thinly capitalized, can’t survive a sustained period dealing with the same business issues that larger corporations spend years pondering.

New lender liability laws have also increased the need for turnaround management. At one time, banks could take control of client companies in serious financial peril. Today the courts view this action as equity participation, forcing banks to avoid direct involvement with corporate management. A turnaround specialist, operating as either an interim manager or consultant, may replace a company's CEO and temporarily take over the decision-making process of a company to lead it back toward stability. Or, the turnaround professional may become an active advisor to the troubled company's board of directors.