1. SICKNESS IN VENTURE

2. RBI definition: principal or interest has remained overdue for two consecutive quarters in a financial year and there is an erosion in the net worth due to the accumulated cash losses to the extent of 50% or more

3. Impact – unemployment, non-payment of dues, blockage of finance, non-utilization of assets

4. Causes of sickness- Personal Management
Lack of integrated knowledge/ training
Incompatible personalities
Health
Shift in attitude
Succession
Management
Form of ownership
Wrong choice of product/location
Team building
Planning
Management information systems
Inability to manage growth

5. HR issues Operational issues Faulty recruitment Wage structure
Industrial Relations
Low productivity
Operational issues
Technology obsolescence
Quality up gradation

6. Production Management
Plant location & layout
Quality
Capacity utilization
Inventory
Maintenance
Environment
Waste management

7. Financial Capital structure Capacity to bring capital
Poor resources management
Costing/pricing policy
Over-dependence on concessions & subsidies
Diversion of capital
Over-trading
Unfavorable gearing
Lack of tax planning

8. Marketing Over-dependence on a single customer Marketing myopia
Sales &distribution set-up
Market feedback/ research
Marketing strategies

9. Government Act of God Changing policies Scale of economy Controls
Fiscal policies
Role as facilitator
Act of God
Accidents and injuries
Catastrophes and disasters

10. Board for Industrial and Financial Reconstruction
B I F R
Board for Industrial and Financial Reconstruction

11. Prevention is better than cure

12. The Success Trap
All great companies have some kind of success formula. It could emanate from a unique set of strategic frames, resources, processes,relationships or values. But when the formula hardens,companies lose a vital ingredient for continued success

13. Is your company at risk? Symptoms of Active Inertia
Strategic frames become binders
“We are a growth company”
“We know our competitors well”
“We are number one”
Resources harden into millstones
“Our brand means the product”
“We have it all”
“Our technology is a fortress”

14. Processes lapse into routines
“We have a ‘bible’ for critical processes”
“We hire and promote people like us”
“We make our decisions by consensus”
Relationships become shackles
“We know our place in the value chain”
“We do the important tasks in-house”
Values ossify dogmas
“We are a family, not a company”
“We have a campus, not a headquarter”
“Our competitors are our enemies”

15. Source:
Donald N Sull in his book “Revival of the Fittest: Why Good Companies Go Bad And How Great Managers Remake Them” : Harvard Business School Press,2003

16. Thank you