Turnaround
Our motto is “Building is much harder than demolishing”. In a turnaround, costs must be cut decisively, but the real challenge is to build, at the same time, the foundations of the relaunch.
When does it help?
- The company is in serious economic or financial difficulty
- Shareholders and lenders want a credible plan, quickly
- The cuts made so far have not changed the course
Which levers do we work on?
- Rapid diagnosis of costs, processes, organisation and systems, to reach within a few weeks a base of facts shared with management, shareholders and lenders
- Quick wins on costs that do not touch the heart of the business: indirect costs, supply contracts, IT licences and services, non-core activities to outsource
- Redesigned processes that cost less structurally, without losing the capabilities the relaunch will need
- Strict priorities on technology investment, removal of redundant systems, reliable data for decisions
- Programme governance: a few indicators (costs, cash, service) and a tight progress cadence
- Interim roles for the transition period: operations, information systems, programme management
How do we approach it?
There are no standard recipes: every situation is unique. People, systems, investments and key processes must be addressed together, almost never separately. A radical cost reduction is almost always necessary and requires a great deal of experience, especially in managing people. That is why we work alongside management, and stay present when needed.
From our experience
The partners’ experience in life sciences includes the restructuring of complex international commercial regions and of a single site in Italy that housed an international group’s global research and development, two highly advanced production plants, and commercial and support functions.
Where do we start?
In a turnaround, time matters. We often start with a rapid process diagnostics together with an indirect cost review, which delivers results within a few weeks.
See also: Indirect cost optimisation · Value chain