Depending on the stage of the crisis the company is in, the requirements for and the contents of the crisis management arise.
I was involved in the successful reorganization of a mechanical engineering company. In my function as commercial manager with sole power of attorney, I actively and emphatically initiated and led the turnaround from the commercial side. At the same time, as CFO of a special machine manufacturer, I successfully carried out an insolvency in self-administration. Of necessity, but as the best solution after the worst case scenario had occurred.
So I know very well what is happening and what needs to be done.
A strategic crisis can be managed, but the reorganization must be of a performance-based nature. The company’s success factors must be redesigned. There is a clear need for action, but little pressure to act or suffer.
With a suitable early warning system, you can recognize this crisis and actively shape your further business development and the fate of the company. Are your controlling systems up to date and, more importantly, do they have an impact on the company?
- As your “commercial conscience” I accompany your business development in a critical-constructive attitude. Only in the company’s interest with a sustainable commercial focus, without entanglement in networks and existing comfort zones. With constant, emphatic demand for more profit, larger market share, better performance.
- I support you with performance and cost analyses – objectively honest and unadorned – and continue with the development of a new market and competition strategy and product, production and cost strategy. Michael E. Porter sends his regards.
The earnings crisis follows if the strategy crisis increases in extent and intensity, which will be the case without countermeasures. Financial problems arise. Far-reaching reorganization processes must be initiated and implemented.
This compelling, drastic change of course is called a turnaround. The measures cannot be delayed any longer, the time window is closing. The possibilities and options for action for the company to successfully overcome the crisis are narrowing down more and more.
- I accompany necessary optimization and cost reduction projects in the areas of finance, accounting, planning and controlling, human resources, purchasing and logistics.
- I design and accompany the implementation of reorganization and restructuring measures.
- At the same time I work on an alternative plan B for you. The preparation of a “fall-back position” and the performance training of the organization and the team for the worse provides security and, if necessary, an existential option for action for the worst case.
The final crisis stage is the liquidity crisis, if the earnings crisis cannot be overcome either. The company’s existence is acutely threatened. The company’s room for maneuver is extremely limited, both in terms of time and material resources.
Independent decisions by management are only possible to a limited extent, as the interests of creditors are at risk in addition to those of the company. The company itself is no longer in a position to successfully overcome the crisis. It is dependent on constructive cooperation between employees, creditors and shareholders and on the trusting support of customers and suppliers.
- In the common interest of survival, the maximum affordable contribution (= financial sacrifice) must be demanded from all those involved. I will organize, communicate, negotiate and demand this. Systematically. Convincingly. ASAP.
- I will implement a suitable, permanently up-to-date liquidity planning (if there is no such planning).
- Disruptive elements are to be eliminated.
- I support you in the operative day-to-day business.
- An important point in the short term is then the development of a simple but coherent restructuring concept.
- Legal issues are to be put into the right hands and to be accompanied sustainably in your own interest. I actively shape the interaction with the necessary external parties: lawyers, experts, auditors and, if unavoidable, the administrator or insolvency administrator.