TMA Operational Turnaround

Question 1

What is the first priority in an operational turnaround engagement?

Accepted Answer

Stabilizing cash flow and stopping the bleeding

Answer

The immediate priority in any operational turnaround is to stabilize cash flow by identifying and stopping cash drains before implementing longer-term improvements.

Question 2

Which of the following is a common quick-win operational cost reduction in a turnaround?

Accepted Answer

Reducing discretionary spending and eliminating non-core activities

Answer

Eliminating discretionary spending and non-core activities delivers fast cash preservation with minimal disruption to core revenue-generating operations.

Question 3

What does SKU rationalization mean in an operational turnaround?

Accepted Answer

Reducing the number of products offered to focus on the most profitable ones

Answer

SKU rationalization involves eliminating unprofitable or slow-moving products to simplify operations, reduce inventory, and focus resources on the highest-margin offerings.

Question 4

What is a key performance indicator (KPI) dashboard used for in a turnaround?

Accepted Answer

Providing management real-time visibility into critical operational and financial metrics

Answer

A KPI dashboard gives turnaround management real-time visibility into critical metrics so they can quickly identify problems and take corrective action.

Question 5

In turnaround management, what does 'rightsizing' the workforce mean?

Accepted Answer

Reducing headcount to align staffing levels with current business needs

Answer

Rightsizing aligns the workforce size with the company's actual revenue and operational needs, eliminating excess overhead during a period of financial stress.

TMA - Turnaround Management Association Practice Test

TMA - Turnaround Management Association Practice Test

TMA Operational Turnaround