Insights & Perspectives

The Corona pandemic and its consequences, including disruption of important supply chains and shortages of materials, have plunged many companies into a crisis that threatens their very existence. Small and medium-sized companies in particular are having to contend with double-digit falls in sales and earnings. Companies that failed to prepare for the crisis in good times have been hit particularly hard. So it's high time to tackle the issue of preventive restructuring now. In particular, products with an insufficient contribution to earnings, inefficient processes and cumbersome decision-making structures often lead to problems: While they can still be compensated for in good economic times, they can quickly become a threat to the company's existence in a crisis. In this situation, companies that see the crisis as an opportunity to anticipate necessary changes and implement them quickly have a clear advantage. The goal is to improve effectiveness, increase efficiency, launch growth initiatives and increase liquidity . The necessary measures should be taken proactively, quickly and thoroughly before liquidity bottlenecks force the company even further into the defensive. The first essential prerequisite to get back on the road to success is an unsparing look at the actual situation of the company with all its strengths, weaknesses, opportunities and risks.

90 percent of German companies are family businesses. Often with a long tradition and several management changes from generation to generation. These handover processes are often complex. "A family-internal company handover is of great importance for all family members," finds Bessie Fischer-Bohn. The economist, psychotherapist and executive consultant has been accompanying families through the leadership transition for many years. Why do those who don't normally sit at the conference table also have to come to the table? How can the Prince Charles Syndrome be avoided? And what do families typically ignore?

Long-successful companies repeatedly demonstrate resilience in crises. Christoph Scholl and Stefan Renken say tradition does not always equate to inflexibility.

The Corona pandemic has undoubtedly given digitization in Germany a major boost. But the momentum did not happen voluntarily everywhere. While young companies, in particular those with fluid structures and processes, are finding it easy to go digital, the comprehensive digitization of business processes is still meeting with resistance in many long-established companies. This is one more reason why established companies should take action now. However, they should do so with the aim of achieving effects – not just for the sheer sake of taking action. In our experience, digital projects are initiated far too often without being implemented consistently. The last two years, in particular, have clearly shown where successful digitization failed in many companies: instead of implementing digitization with all its consequences for the structures and processes in the company, action is taken step by step at best. Expensive software tools are purchased and incorporated in the IT infrastructure. However, many companies fail to take the decisive next step, which is the end-to-end integration of new digital structures and processes into the company's organization. As a result, digitization remains piecemeal - and will never be able to develop its full potential.

Raw materials, labor, energy, transportation: everything is becoming ever more expensive. But that's not all: the rising costs of important input factors are endangering the profitability of companies. With our interactive inflation calculator, you can quickly find out just how much price increases are impacting your company's earnings and how price increases to your own customers can provide relief.

If no investor can be found for an insolvent industrial company, the decision is made to close it down. In this case, however, "shutdown" does not mean an immediate standstill at the plant. Rather, it means a carefully managed phase-out of production. In order to achieve the best possible result for everyone involved - employees, customers, creditors and suppliers alike. We spoke to Thomas Schulte, interim manager/managing director at pressmetall GDC Group GmbH, and Axel Gerock, quality manager and consultant for restructuring and turnaround. As a well-rehearsed team, they accompanied, among others, the phase-out of the pressmetall plant in Gunzenhausen in Middle Franconia and were able to conclude the process with unusually good results.

When an insolvency administrator comes to the company, it is usually already ablaze. The employees have already noticed weeks or months ago that something is going wrong and fear for their future. But no company gets into insolvency without a reason. Often, performance-related problems have not been eliminated for years. For the insolvency administrator, the task now is to mobilize forces and motivate employees. In order to keep customers satisfied, the quality and delivery reliability must be at least as high as outside the insolvency proceedings. No manufacturer will permanently commission an insolvent company out of pity. This is particularly difficult in production. Here, in particular, experienced interim managers are needed to avoid a high level of sick leave or to prevent acts of sabotage in production. What role does the insolvency administrator play? Why does it make sense to work with external consultants and what skills do interim managers need to have? How can staff be motivated and both quality and delivery reliability for customers be maintained? We talk about this with Detlef Specovius, lawyer and specialist in insolvency law at Schultze & Braun.

Today's expectations of companies are unprecedented in their social and political dimensions, says our director Wolfram W. Hackbarth. Decision-makers in companies need to act quickly, but with deliberation and a clear concept.

Baking is en vogue: since the lockdowns, when mainly flour and yeast were sold out in supermarkets, another habit has been established: People are buying more from their friendly baker next door, whereas the bakery-restaurant sector has declined. The "culprit" is the home office and resulting less crowded city centers, train stations and airports. The figures speak a clear language. And the signs? The signs are still clearly pointing to change. What opportunities should bakeries seize now, and how do they succeed in reorganizing operations professionally? Dr. Tim Bauer, Managing Consultant at enomyc, reports on four proven success factors.