At Litchfield Capital Advisors we simply define the process of performance improvement as the pace at which a corporation's financial results can be accelerated.
It is clear that in difficult times change is most often driven by the most immediate and pressing challenges facing a business. A business can soon lose its focus on good management and sound financial practices and turn instead to fighting fires and the overwhelming struggle for stabilization or even for survival. It is most often about improving cash flow and achieving positive earnings in an environment of increasingly scarce liquidity.
However the most important step in the drive for performance improvement is stabilization. This initially involves working together with all stake holders to define the most effective and sustainable road to recovery or in some cases to liquidity; a common path to success. For the most part this involves stabilizing the top and bottom lines through debt restructuring improved cash flows, working capital management and ultimately sustainable profitability.
At Litchfield Capital Advisors we will work as trusted advisors, as directed either alongside management or directly intervening as interim management. But our philosophy is generally the same; introduce effective and positive change that will empower people and improve processes and enhance operational performance.
In most cases an underperforming business has lost its synchronized approach to products, services and customers that are critical to stabilized operations. In effect various aspects of the business get out of sync with the realities of the cost of operations, the cost of capital, business improvement processes, changing market conditions, competitive threats, effective use of available capital or customer requirements. In many cases these unplanned missteps build velocity over time growing into an ever larger downward spiral of deteriorating operational and financial conditions.
Through proactive management, out of sync operational components can be brought back in line through aggressive cost control, financial restructuring, cash preservation strategies, working capital management, value proposition alignment with market requirements and conditions, enhanced tax strategies and the optimization of operational overheads. Stabilization of operations is the first step toward sustainable performance and productivity improvement.
The skill sets of resources we bring to bear range across strong operational, financial, legal, debt restructuring, public and private equity, human resource and advisory, all with proven track records. And we can expertly apply these skills across the potentially broad range of operational and financial tasks required to deliver optimal results in the most timely and cost effective manner.