Marc Andreessen of Netscape fame has started blogging and has written a series of very insightful posts. Today he writes "A Guide to Big Company Turn-arounds" which reads like a blueprint for how to turn around Yahoo (YHOO).
His advice may also work for small and mid-sized companies that need to take radical steps to turn things around.
According to Microsoft's Don Dodge, the challenges SMBs have during a turnaround are:
- Small companies don't have the cash flow and momentum to carry them for a year while a new CEO figures out what to do.
- Small companies require immediate and decisive action.
- Cash is king in all decisions. Small company turnarounds usually focus on cash and customers first. Small companies may not have 3 to 5 things to promote and 3 to 5 things to kill. (I beg to differ! All companies need to produce that critical "stop list.")
Marc outlines 9 steps to a successful turnaround. His whole post is here.
(Hat tip to Don Dodge at Microsoft for the jump!)