Set the right course immediately
Most enterprises have been in one or perhaps even several survival-threating enterprise crises. There are different reasons for a crisis. Management mistakes, like holding on an outdated business strategy for too long and not adapting to new market structures or an insufficient controlling, are frequent causes.
Every business crisis is unique. For a successful overcoming of crises, specific skills are temporarily needed. In our long-standing experience as consultants we have accompanied a substantial number of enterprises in the overcoming of their unique crises. That experience we gladly offer.
Phases of the Turnaround-Management
If an enterprise recognized the critical situation it is in and is ready to counteract that situation, a structured turnaround of four phases will evolve:
In this phase the main priority consists of ensuring the liquidity and therefore the capacity to counteract the crisis. The cash reserves of the enterprise need to be protected or if necessary enlarged. Thereby the core functions and the significant business relations must to be maintained. In this phase it is of utter importance to set clear priorities, to call for external assistance if necessary and to equip the crisis management with the required competences.
Parallel to the activities regarding the protection of the liquidity, the management must take immediate action in restructuring the enterprise, to remove the most obvious flaws or sources of losses.
- Initiation of the Turnaround
The second phase of the Turnaround-Management is characterized by the pragmatic and critical analysis of the starting situation in all important enterprise areas, the development of an achievable restructuring concept and the necessary preparation work to start swiftly with the Turnaround.
- Realization of the Concepts
This phase of the Turnaround-Management consists of the concrete implementation of the Turnaround-Concepts through the organizational and strategical restructuring of the enterprise. Together with all employees and all other responsible persons, the challenges will be tackled. For an example will the market performance be precisely adjusted to match the correlating customer and market groups. Orientated on that realignment, the activities and processes of the enterprise will be tightened and synchronized. Finally the organization will be functionally reorganized. Coupled with a rapid and efficient Management this phase will swiftly bring along improved results.
- Consolidation of the Enterprise
In the fourth and last phase the changes in structure will be anchored. Thereby exists the risk of a relapse in old habits. We will stand by your side to minimize this risk and to secure the sustainable and long-lasting success of your enterprise.