Restructuring for Success
Rapidly setting the right course
Most enterprises have already been through one or perhaps even several survival-threatening crises. There are a plethora of different causes that can lead to a crisis. Frequent triggers are management error, such as clinging to an outdated business strategy for too long, not adapting to new market structures, or inadequate accounting processes.
Every corporate crisis is unique. In order to successfully overcome a crisis, there are a series of specific skills that will be needed on a short-term basis. Through our long-standing experience as consultants, we have assisted a considerable number of enterprises in overcoming their individual crises. We gladly offer these skills and experience to you.
Phases of a Turnaround Management Project
Should a business identify a critical situation in a timely manner, and is ready to counteract, a structured turnaround is executed in four phases:
- The Crash Phase
In this phase, the main priority is to preserve and secure the business’ liquidity, and therefore the ability to continue operating. The business’ cash reserves must be protected and increased if necessary. In doing so, the core business functions and relevant business relationships should be maintained. In this phase, it is critical that clear priorities are set, external help is sought if required, and crisis management have all authorities and authorisations required to act.
Parallel to activities to secure liquidity, management must take rapid, concrete measures restructuring measures to address the most obvious issues, or to stem the most serious sources of loss.
- Instigation of the Turnaround
The second phase in any turnaround management initiative involves the pragmatic and comprehensive documentation and assessment of the initial situation, the definition of a realistic and achievable restructuring concept, and the necessary preparation work to enable the swift commencement of work on the turnaround.
- Implementation of the Concepts
This phase in turnaround management comprises the implementation of the turnaround concepts through the organisational and strategic restructuring of the business. Together with all employees and stakeholders, for example, the company’s offerings are precisely aligned to their target markets and consumer groups. The activities and processes in the business are then oriented to this alignment, and tightly coordinated with one another. Finally, the organisation is restructured from a functional perspective. Coupled with expedient and efficient management, this phase delivers sustainable business improvement.
In the fourth and last phase, the structural changes are anchored in the corporate culture. There is the risk of a relapse into old habits, until the next crisis and next turnaround. We stay at your side with guidance and support, ensuring your business’ sustained success.