1. AsiaTransformationandTurnaroundAssociation
MembershipDevelopment
Initialmembershipcertificationisduetobegininthesecond
halfofJanuary2011.Theinitialinterviewswillbe
conductedbyapanelinHongKong,andpossiblyBeijingor
Shanghai,includingoneortwovisitingmembersofthe
InstituteforTurnaroundintheUK.Oncetheinitial
membershipisconfirmedATTAwillconductitsown
membershipqualifications,likelytoevolvewithAsian
characteristics,consideringthehighlydiversenatureofour
potentialmembershipfromJapanandKoreaintheNorthto
AustraliaintheSouth,andwideswathsofAsiaincluding
Chinaasamajorsourceofmembership.
Logo
Thefirstlogohasbeen
selectedbytheBoardof
Directors.Chinesecharacter
versionsandversionsincludingbothChineseandEnglish
arebeingdevelopednow.
BranchDinnersandMeetings
Thereappearstobeaconsensusdevelopingthatthe
quarterlydinnermeetingsshouldbeadaptedtopromote
organisationalgrowth,especiallyfollowingtheformal
establishmentofATTA.Theyshouldhaveastrong
educationalcomponenttoincreaseinterestinATTA.The
meetingsshouldincludepractitioners,academics,and
youngerandotherprofessionalsseekinginformationabout
theATTAanditsworkingmethods.Casestudieshavethe
advantageoflettingATTAbranchesdecideifameeting
shouldconcentrateonTransformationorTurnaround.This
approachseemstoofferopportunitiesforbothinanannual
branchagenda.
TheHongKongbranchrecentlyinvitedaninsolvency
practitionertodiscusshowturnaroundspecialistsand
insolvencyexpertscanworktogetherformutualadvantage.
Thediscussionwaspositive,withanacknowledgementthat
thetwofieldsarerelated,butthatitwilltakecareful
planningandopenmindednesstodevelopworkingrelations.
Theinsolvencyandbankruptcyfieldiswellestablishedand
profitableinHongKongandChina.Theideaofcorporate
renewal,turnaroundmanagementandpreservinginvestor
valueisasecondaryconsiderationforthissectorofthe
businesscommunity.
PrivatemeetingsunderChathamHouserulesalsowill
continuetoafeatureofATTAmembership.
TheBeijingBranchwillbemakingapresentationtothe
AmericanChamberCommerceChinainBeijinginMarch.
It’sbeenaveryexcitingyearforATTAand2011lookstobe
anevenbetteryearforopportunityexpansionandbusiness
developmentformembers.
IFTMemberDavidTilston
onre-financingMouchel
TowardstheendofJanuary,Mouchel,whereIFTMember
DavidTilstonisCFO,announcedithadrefinancedits
bankfacilitiestwomonthsearlierthanexpecteddespite
someunhelpfulpresscoverageenroute.Thebusiness
nowhas£170mofbankfacilitiesinplaceuntilMarch
2014.Thisrepresentsanimportantturningpointfor
Mouchelasitprovidesstabilityandensuresthebusiness
cancontinuetocompetesuccessfullyinitschosen
markets.
Therewassignificantnationalpresscoverageonthisnews,
includinganinterviewwithFinancialDirectormagazine.
Moucheldescribesitselfas,“aconsultingandbusiness
servicesgroupthatprovidesmanyofthedesign,
managerialandengineeringservicesthatsupportmodern
society.
“Weworkwithgovernmentagencies,localauthorities,
government-regulatedindustriesandtheprivate-sectorto
providesafe,reliableroadsandrailways,well-managed
educationandcivicinfrastructure,cleanwater,andcost-
effectiveenergy.
“Wedevelopsolutionstodisposeofsociety’swasteandto
regeneratethemostdeprivedurbancommunities;andwe
helpdevelopersandcorporateclientstocombinetheir
objectiveswiththoseofthesocietyaroundthem.”
AdvicetoColleagues
Lookingtotheyearahead,DavidTilstonsaid,
“IthinktherewillbecontinueduncertaintyintheUKand
thedevelopedeconomiesarisingfromtheausterity
measuresgovernmentshaveintroduced.Therewillbevery
lowgrowthandarecessionaryenvironment.Inless
developedcountries,thereareopportunitiesandthe
potentialforcontinuedgrowth.Thereisgoingtobea
balancingoftheoutlookdrivenbythespreadofbusiness
betweendevelopedandlessdevelopedeconomies.
“Ifyouhaveanyrefinancingrequirementscomingupover
thenext18monthstotwoyearsyoushouldbeworkingon
itnow,astheprocesswilltakelongerthanmayhavebeen
experiencedinthepast.Thebanksarestillclearlycautious
abouttheoutlookincertainterritoriesbecauseofthetough
economicenvironment.
“Inoursectorweexpectatougheconomicenvironment.
Forthenext12monthswewillfocusoncontinuingto
reduceourcostbasewherepossibleandkeepahighfocus
oncashgeneration.Maintaininggoodbankingrelationships
continuestobeextremelyimportant.”
ATTA
OUTREACHUPDATE
BobFonowATTABoardMemberforOutreach.
2324
InOctoberlastyear,Iwasfortunatetoattendthe
inauguralmeetingoftheAsiaTransformation&
TurnaroundAssociationinHongKong.Itwashostedby
AdamSalzerofPwCandattendedbythegreatandthe
goodoftheAsiantransformationandturnaround
world.DelegatesmainlycamefromChinaandHong
KongwithasprinklingfromSingapore,Malaysiaand
Indonesia.
YoumaywellaskthequestionwhydoestheAsia
Pacificregionneedatransformation&turnaround
associationwhentheireconomiesaregrowingat10per
centormoreperannum?Giventhefabulouswealth
beinggeneratedthere,itisreasonabletoassumethat
thereislittleinthewayofunderperformingbusinesses
needingtheturnaroundskillswhichweintheUKare
sogoodat.Yourinitialscepticismiswellplaced.
BusinessCulture
ThelocaltransformationprofessionalsImetattheHongKong
conferencearemoreconcernedwithhelpingbusinesses
managegrowthandhelpingthemmoveuptothenexttierof
performance.Theeconomicconceptswearesousedtointhe
Westofstagflation,fallingassetpricesandfalteringdemand
arequitealientotheAsianbusinessfraternity.Theirworldis
alwaysonwardsandupwards.Transformationprofessionals
spendtheirtimemakingsurethatbusinesseshavesufficient
capital,productivecapacityandensuringthatmanagementis
therightstuff.
Interestinglyconsiderabletimewastakenupbyconference
delegatesindecidingthenameofthenewassociation;should
itbetransformationandturnaroundorturnaroundand
transformation?Theconsideredviewwasthattocallit
turnaroundandtransformationwouldsendthewrong
messagetotheirclientsandthemarketplace.Thelikesof
FredNg,awellknownturnaroundtransplantfromtheUK,
arguedstrenuouslyotherwisebuthadtoyieldtothemajority
viewintheend.
ItwouldbewrongtothinkthateverythingisrosyinChina
andtheAsianeconomiesgenerally.Itiseasytobetakeninby
thisgrowthparadigm.ItiswellknownthatChinahashuge
inflationaryproblems.FewbelievetheChineseGovernment’s
assertionthattheofficialrateofinflationisonlyfivepercent.
Foodpricesarerocketingat20percentpermonthincertain
partsofthecountry.On1JanuarythisyearChinaraisedits
interestratestonearlysixpercent.TheChinesegovernment
isnowtighteningmonetarypolicytotrytoslaythe
inflationarydragon.In2011andbeyond,growthisexpected
tofallbackto5-6percent.Economistssaythisis
tantamounttoarecessioninChina.Raisinginterestratesand
chokingoffeconomicdemandmaywellexposebaddebts
withinthebankingsector.Wageinflationincertain
manufacturingsectorsisforcingcompaniestomove
productiontocheapercountriessuchasVietnam.
WhenChinasneezes,therestofAsiacatchesacoldto
paraphrasethatwellknownsaying.Whilsteconomic
performanceinChinaandtherestofAsiahasbeenanything
butlacklustreinrecentyears,itispossibletoseethatthere
signsofconsiderableeconomicupheavalahead.
LandsofOpportunity
TurnaroundprofessionalsfromtheUKshouldstartto
considerAsiaasanareaforfuturework.Therestructuring
thatwillstarttohappeninChinawillundoubtedlythrowup
opportunitiesforus.ThebestapproachwouldbeforIFT
memberstotakeatripoutthereandassessthesituationfor
themselves.Alsoitwouldbeworthwhilemakingsome
contactsandleadsamongstbusinessmen,bankersand
accountantsintheregion.
IfoundthetriptoHongKongtoattendtheconferenceuseful
andrewarding.Theconferenceitselfwaswellorganisedand
informative.ThepeopleImettherewereextremely
approachableandwillingtotakethetimetodiscussthe
manyopportunitiesforturnaroundprofessionalsinthe
region.Itcertainlywhettedmyappetitetoworkoutthere
andIhopetoreturnsoon.
THEASIATRANSFORMATION
ANDTURNAROUNDCONFERENCE
Goeastmyson,goeast!saysIFTMenberNigelBridle.