I had a client with the following issues:
- A lawsuit that could bankrupt them,
- Employees stealing from the company,
- Severe cash flow issues.
Their strategy seemed to be to:
- Create new corporate entities, transfer assets and let the existing legal entity go bankrupt,
- Ignore the personnel issues,
- Keep working for free for a client who was not paying them,
- Dream up new ventures,
- Ask for money.
After many discussions we convinced them to:
- Stop working on the program in dispute; instead work to resolve the issue.
- Stop the legal shenanigans.
- Focus on the markets where they could sell their expertise.
- If it makes sense to bring in an outside investor to help finance one specific new initiative, do it. Otherwise, forget it.
- Manage their cash.
- Change their culture.