Think ahead at an early stage
Most companies treat restructuring as a reactive solution to a crisis, but there’s more to it. Change can be initiated proactively. Restructuring has undergone significant changes over the last few decades. At first, the focus was on restructuring the balance sheet and on getting the financial basis right. This was followed by a period driven by cost cutting. Nowadays, restructuring takes a holistic approach that starts with a sustainable business model from which cost structures, organization, and adequate financing are derived.
A fundamental prerequisite for a successful management of a corporate crisis is an analysis of the causes of the crisis and the crisis stage. Six stages of the corporate crisis can be distinguished.
1. Stakeholder crisis
The stakeholder crisis is seen as the starting point for the crisis, with a focus on weaknesses on the part of the organs and the management team.
2. Strategy crisis
A strategy crisis usually only affects a company in the foreseeable future – not today or tomorrow. The time depends on the trigger, but also on the size of the company.
3. Success and sales crisis
A crisis of success or sales – also overproduction crisis – is characterized by the lack of solvent demand for own products. This leads to a sales and thus to a decline in sales, which can be hazardous to the company.
4. Results crisis
A crisis of success can no longer be overlooked. The sales and turnover figures decline significantly, costs are more difficult or impossible to cover. This also has effects within the company: the working atmosphere and work motivation suffer – and intensify the crisis.
5. Financial crisis
The liquidity crisis marks the final stage of a crisis, and unfortunately also the time when many companies first realize that they are in serious trouble. At the latest now it would be time for a fundamental process of change – which, however, is barely realizable in this phase due to dwindling funds.
If a company has reached bankruptcy maturity, it is already too late for regular measures and changes. Unaided, the company is no longer viable in this situation.
We help companies to continuously monitor their economic status as well as external developments to determine when and which changes bring the most value with the least amount of effort. In this way, companies and organizations should recognize emerging crises at an early stage and counteract them in good time.
Together with our customers, we develop highly specific strategies to identify and address crisis levels – and efficient processes to deal with them in a targeted manner.
Learn more about our consulting services and arrange a personal, non-binding appointment.
Weiand Hospitality Consulting
Quartier Potsdamer Platz
Linkstraße 2, Level 8
10785 Berlin, Germany
Telefon: +49 30 700 12 7029
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