When a business is struggling to survive, it might seem like there are few options available. But emerging from a crisis situation is still possible with the right management. Innovative Directions specializes in turning such businesses around and ultimately ensuring the best possible outcome for owners and investors.
“Our clients include family businesses, private equity portfolio businesses, and debt-laden companies with cash deficits and negative returns that need a fix-it strategy and execution,” said CEO Philip Krichilsky. “Our goal is to create for our clients the option to grow or to exit.”
To achieve this, Innovative Directions offers a variety of services depending on the struggling company’s situation. These include interim management – where Innovative Directions will step in and take over the day-to-day running of the company – as well as governance and strategy support, and detailed execution plans.
“Our core value has always been giving our clients a clean exit from problematic businesses while ensuring their employees, customers, vendors and the communities they work in can enjoy continued growth,” Krichilsky said. “We treat our client’s business as if it is our own.”
The company also invests about one-third of its profits directly in social impact for-profit businesses in Southeast Asia and India to help alleviate poverty.
Being based in Hong Kong, at the heart of Asia, gives the company access to clients with operations across the region. The city has other benefits, including its strong talent pool. In particular, Innovative Directions taps into Hong Kong’s seasoned professionals – including under-utilized retirees – and early-career executives, harnessing their skills to take businesses and brands back to profitability.
“Together, this perfect mix of location, people and opportunity ensures Hong Kong is ideal for business advisory and consulting,” Krichilsky said.
As Innovative Directions specialises in hands-on interim management, this often involves staff working on-site in locations including Mainland China, Indonesia, Vietnam and the Philippines. The ongoing Covid-related travel restrictions have made such operations much more difficult, but it has still managed to run “remote control” turnarounds, including exiting two clients at more than double their expected price.
Like many businesses in Hong Kong, Innovative Directions has experienced a bumpy road in the past couple of years. But, in the process, it has learnt a lot about operating in a challenging environment. “My tip is to be humble, recognize and learn from your mistakes, and be flexible,” Krichilsky said.
Looking to the future, Innovative Directions aims to scale up in Southeast Asia – with a focus on Indonesia, Vietnam, the Philippines and India – while continuing to serve Western clients in China and Chinese firms with outbound investment.
“In particular, our plan is to develop diverse executives into skilled turnaround general managers across the regions, and get to a scale that allows us to simultaneously help more clients achieve profitability while investing more in social impact.”
Company : Innovative Directions Ltd
HKGCC Membership No. : HKI0374
Established : 2015
Website : https://innovativedirections.com/