In our series on the 12 Steps to Financial Recovery, we now come to the second-to-last step: Managing the Recovery Process.
Now that the necessary leadership has been determined and has been seeing to the success of the recovery endeavour, it is time for the leader(s) to be put into action by making the difficult decisions that may involve major changes to the organization so that the performances rescue such from decline. The objective is to stay the course and on track.
At this point the recovery leadership will look to execute a series of events, such as:
1) Developing a Recovery Plan: Your recovery plan is a comprehensive document that lays out a detailed program of recovery. It is built around long-term goals that define what a “recovery” looks like and your goals need to be supported by strategies and detailed initiatives. Each initiative should describe the proposed action, who is responsible, the implementation schedule, required resources, and the anticipated impact on the recovery effort. And make sure to also include a detailed financial projection for the first year and summary-level projections for the next three to five years.
2) Managing Project and Budgets. That means that you need to sort out the main elements of you budget: line-item controls, budget transfers, rescissions, salary savings, budget amendments, informal contingencies, position controls, formal reserves, and encumbrance controls.
3) Organizing People,
4) Monitoring Programs, and
5) Holding People Accountable for Results
The last three elements are part of the project management part of the recovery process.
Tip: If you treat the financial recovery process like a project that needs to be directed and managed, it will really help put you in the proper mindset for handling it. In managing a project you need to keep 4 key things in mind: accountability, measurability, achievable goals, and clarity of expected output. If you look at the above and what we’ve been talking about all along the 10 previous steps of this process so far, you can see how these 4 elements blend in seamlessly.
As per #4 above, when we talk about monitoring programs, you can translate that into putting together progress reports and having people in charge of that so that you always know where you’re at compared to where you started and where you need to be.
Holding people accountable for results can be tough, but incentives can definitely make the difference. Only you know which incentives will work best for your team.
We’re almost there! Step 12 is next, where we’ll be talking about the Outcome of Recovery.
Always make sure that you make an informed decision in all matters,
All the best,
The Capital Corp Team