Companies, both domestic and multinational, compete in environments of ever-increasing complexity and unpredictability, as recent evolutions testify, from urgencies to adapt to climate change, to pandemic and geopolitical crises. Pressures to adapt and manage non-market stakeholders and cater to their demands does not make the task easier. This context often exposes companies to risks of financial distress and renders necessary the reconfiguration or even transformation of strategic portfolio and financial activities, as well as value chains, for firms to remain competitive. Management, the board, owners, and outside professionals are continuously engaged in preventive action or in action to avoid further deterioration, and restructure, transform and turn the business around to restore its profit-making capacity.

The course will examine the opportunities for transformational change emanating from economic/financial pressures, while considering the role of environmental and societal pressures. The overarching question to be addressed throughout the course is how do owners, boards, and senior management teams effectively change/transform an organization in response to often-dramatic changes in circumstances? As such, the course focuses on all aspects of corporate turnarounds – from the early stages of recognizing potentially company-threatening problems, to diagnosing and implementing appropriate corrective market/financial/organizational/legal solutions to such problems. The course will also focus on the important role of communication and leadership in effecting corporate turnarounds; the role of leadership in creating a transformational opportunity resulting from a crisis context.

The course is multidisciplinary, drawing on several of the core business disciplines, and providing an opportunity to apply them to organizations during major transitions. Students may come into this course in view of integrating various business disciplines – applying both quantitative and qualitative tools drawn from accounting, corporate finance (e.g., cash flow modeling, debt restructuring), corporate strategy, management, leadership, and communication.

Financial and organizational aspects of transformation will be explored through a variety of teaching methods, including lecturing, case studies, academic and practitioner readings, and class discussion. Further detailed information on course content and structure, pedagogical approach, and assessment will be provided through a course outline.