March 3, 2008
Turning Around Troubled Companies
Jim Thornton, CEO of Provo Craft and Novelty, saved this company from bankruptcy by growing revenue to $200 million, a 38% increase in two years with an improvement of 227% in EBITDA. For example, he turned over the entire original management team and took over the roles of CEO, CFO and COO personally, until he discovered the company’s bugs. He then personally recruited five Fortune 50 executives to come to come join the company.
In this podcast, Jim provides some insight into how to handle turning around a company, including:
– How is your turnaround style unique?
– What do you find to be the greatest challenges in a typical turnaround situation?
– What are your feelings about incumbent managers who seek retention bonuses after they have caused a company to become troubled?