Many companies have to cope with a large number of difficult situations and crises. This is hard work for management.
Where there is a severe slump in sales, however, the capacity and cost structure must be adapted quickly but sustainably to new realities. The “cost brake” is often used to create financial breathing space that is needed for the “innovation accelerator” for new growth initiatives.
When dealing with anxious employees, clear communication and vision for the future is expected.
We can support you in this difficult transformation and accompany you and your employees through the change.
- Status determination and development of both a short- and a long-term strategy
- Cash and working capital management: liquidity-oriented control, liquidity planning, working capital optimisation
- Setting up a cost-cutting programme for all cost items and controlling of costs & savings
- Revision of the entire value chain (complexity of service portfolio, make or buy decisions, review of locations / investments)
- Use of M&A as an instrument to re-organise the company portfolio (e.g. divestment & acquisition of business sectors)
Managing a severe sales slump
For a European supplier of satellite communications, there is a significant gap in orders after three large contracts have been fulfilled. The complex ongoing projects must be completed successfully, but capacity must also be adjusted promptly to the declining workload.
- Review of strategy and corporate planning
- Adaptation of the organisation to the new level of turnover and workload in three phases using a comprehensive cost-cutting programme
- Performance tracking of the level of progress of the ongoing projects, as well as detailed capacity and workload planning
- Identification of key personnel to reduce undesired fluctuation, maintenance of core processes to implement ongoing and future projects
- Development of innovative products and implementation of new business areas
- Establishment of new communication processes (local dialogue, circular mail, departmental meetings)
Through decisive action, capacity can be quickly adjusted to the new level of turnover without threatening the ongoing projects or technical performance in the long term.
Your Contact Person
Dr. Mike Körner