Transcript Document

Business Rescue Performance Model
Marius Pretorius
Wesley Rosslyn-Smith
Andria Janse van Rensburg
[email protected]
@brprof
www.brportal.co.za
5 March 2015
Presentation Aim:
To comprehend the complexity of business rescue and
Understand it from a “success perspective”
Share new insights
The Taoist sage has no ambitions, therefore he can
never fail. He who never fails always succeeds.
And he who always succeeds is all-powerful.
• From a solitary contemplation of nature, far removed from the affairs of men, can
emerge a philosophy that has, both in a critical as well a constructive sense -- a direct
and practical political message. Lao Tzu writes:
• Why are people starving?
Because the rulers eat up the money in taxes.
Therefore the people are starving.
• Why are the people rebellious?
Because the rulers interfere too much.
Therefore they are rebellious.
• Why do people think so little of death?
Because the rulers demand too much of life.
Therefore the people take life lightly.
• Having to live on, one knows better than to value life too much.
3
2011 Cause analysis for BR failure
5 PCF
availability
4 Timing of filing
1 BRP Skills
3 Agendas (abuse)
2 Process newness
Other: Bank as creditor, mindsets, creditors and perceptions
Failure
Success
4
Outcomes
Reorganise
BRiL
Key moderators and mediators of rescue success
Vote
Other /
Compromise
Liquidate
5
Performance Drivers
BRP
Navigational
performance
Reorganise
BR plan
BRiL
(Navigation)
Vote
Other /
Compromise
Liquidate
6
BR success = ƒ aVote (bReorg + cBRiL + dOther) x eBRP Nav performance
Reasonable
Prospect (DWaB)
Agendas
PCF
Conflict
• For as, the Indigent
Debtor is a branch of
the Commonwealth,
which deserves its
care, so the wilful
Bankrupt is one of the
worst sort of Thieves
Timing of filing
Causality
PCF
BRP Navigational
performance
model
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Business
Performance Drivers
Decision
making skills
Legal
Finance
Context
Ethics
Integration
skills
Collaboration
skills
Sense making
skills
BRP
Navigational
performance
Reorganise
BR plan
BRiL
Competencies
(Navigation)
Vote
Other /
Compromise
Liquidate
8
BRP Nav Perf = ƒ aCol (bSM x cDM x dInt) x ePlan
Decision
making skills
Integration
skills
Collaboration
skills
Sense
making skills
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Performance Drivers
Decision
making skills
Integration
skills
Collaboration
skills
Sense making
skills
BRP
Navigational
performance
Reorganise
BR plan
BRiL
(Navigation)
Vote
Timing of filing : distress
relation
Chapter 6 process time
lines = Supreme task
Causality - Strategic vs
Operational origin
(Unique TAS)
PCF
dependence/requirement
/ availability
Other /
Compromise
Reasonable Prospect
(Pre-conditions)
Liquidate
10
Performance Drivers
Decision
making skills
Integration
skills
Collaboration
skills
Sense making
skills
Stakeholder & creditor agendas,
knowledge
Conflict
Bank ?)
BRP
Navigational
performance
Reorganise
BR plan
BRiL
(Navigation)
(
Vote
Timing of filing : distress
relation
Chapter 6 process time
lines = Supreme task
Causality - Strategic vs
Operational origin
(Unique TAS)
PCF
dependence/requirement
/ availability
Other /
Compromise
Reasonable Prospect
(Pre-conditions)
Liquidate
11
Business
Performance Drivers
Decision
making skills
Outcomes
Legal
Finance
Context
Integration
skills
Collaboration
skills
Sense making
skills
BRP
Navigational
performance
Reorganise
BR plan
BRiL
Ethics
Stakeholder & creditor agendas,
knowledge
Conflict
Bank ?)
(Navigation)
(
Vote
Timing of filing : distress
relation
Chapter 6 process time
lines = Supreme task
Causality - Strategic vs
Operational origin
(Unique TAS)
PCF
dependence/requirement
/ availability
Other /
Compromise
Reasonable Prospect
(Pre-conditions)
Liquidate
12
BR success = ƒ aVote (bReorg + cBRiL + dOther) x eBRP Nav perf
BRP Nav Perf = ƒ aCol (bSM x cDM x dInt) x ePlan
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Thank you
• [email protected]
• www.brportal.co.za/resouces
• Twitter: @brprof
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Four Higher order competencies
The BR assignment
Navigation
Sense-making
Decision making
Collaboration
Integration
Competency levels for measurement:
Novice, Competent, Proficient , Expert, Master
Navigation in business rescue requires
competencies (skills, abilities,
behaviours) to effect a cross-over from
current distressed position to a new
best position.
This requires: the plotting and
ascertaining of the rescue situation,
determining the best envisioned
endpoint and then directing the course
to pursue through formulating a
strategy for implementation
Informed by the practices, praxis, activities and tasks of the business rescue practitioner
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Principal-agent dilemma in rescue success
Key Moderators and mediators
1 Cooperation skills
10 Collaboration
competency
8 Empathy (view)
Regime success / failure
Conflict drivers
BRP Navigational
performance (5 malperformance and 2
standards)
Conflic
3 Communication
skills
4 Organisation goal
(ego-centrism)
Goal foundation (Bank as
creditor)
12 BRP Intention
(Reorg:BRiL)
Principal –
11 Reasonable
Prospect (Preconditions)
12 Interpretation
differences
Agent
dilemma
© Management Transfer
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cc 1995/35535/23
Successful BR Navigation
Navigation in business rescue requires competencies (skills, abilities,
behaviours) to effect a cross-over from current distressed position to
a new best position.
This requires: the plotting and ascertaining of the rescue situation, determining the best
envisioned endpoint and then directing the course to pursue through formulating a
strategy for implementation
Collaboration
Competence
I
n
t
e
g
r
a
t
i
o
n
D
e
c
i
s
i
o
n
M
S
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e
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Basic, Advanced, specialist knowledge
Knowledge
Business
Finance
Legal
Context
Master
Expert
Competent
Proficient
Novice
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Conflict blame direction
BRPs blamed for being:
Performance standards
Poor communication
Turnaround intention
Incompetence
Malperformance
Banks blamed for being:
Lack empathy for opposing
view
Non-cooperation
Preconditioned decisions
Pro liquidation
Legal orientation
Misinterpretation
Org. Egocentrism
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