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  "documentTitle": "Transformation Ebook",
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  "notes": "The slide discusses a progression of corporate distress and introduces a 'Funding the Journey', 'Winning in the Medium Term', and 'Organizing for Sustained Performance' framework.",
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      "text": "A turnaround or restructuring program should include all three elements, but the relative importance of each changes at various points in the process.",
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      "text": "Funding the Journey. Launch short-term, no-regret moves to establish and demonstrate momentum and to free up capital to pay back debt and help the company reposition.\nWinning in the Medium Term. Develop a business model and an operating model to increase competitive advantage.\nOrganizing for Sustained Performance. Set up the right team, organization, technology, and culture to deliver long-term gains.",
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      "text": "A turnaround or restructuring program should include all three elements, but the relative importance of each changes at various points in the process. In addition, it requires an initial triage and assessment stage, to determine the severity of the company’s challenges and determine the right path forward. (See Exhibit 2.)",
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      "text": "Failure to do so—and continuing to burn cash—leads to the third and final phase: a liquidity crisis, in which the company may soon lack the financial resources to keep operating. At this point, the management team typically loses the ability to make changes on its own, and different stakeholders such as banks and other debt holders may have a say in trying to restructure the company.",
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      "text": "If the company does not change its course, the second stage is a profit crisis. Sales are now stagnating or declining, while profit margins turn markedly negative. At this point, the company starts burning through cash reserves and needs to launch a turnaround.",
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      "text": "Turnaround and restructuring programs involve applying the three components of the transformation framework:",
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      "kind": "paragraph",
      "text": "a new strategy, or several, without success. (In some cases, management may not recognize the scope of the problem.) This is the phase at which traditional transformation programs are relevant.",
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      "text": "The initial stage, triage and assessment, is aimed at generating a clear picture of the company’s financial situation and identifying the most immediate priorities. At this point, management needs to launch rapid measures to stop the bleeding and free up capital as soon as possible—",
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