Lansdowne & Company Bulletin
The keys to successfully implementing “sensitive” turnaround and transformation programs
Based on many years of experience, Lansdowne supports its clients in strategic, operational and financial restructuring.
In recent years, we have developed and successfully carried out numerous restructuring projects, including comprehensive turnaround programs. In addition, we also analysed situations outside of Lansdowne projects in which the desired turnaround was not achieved. From all of these insights, we were able to determine key success factors which we can apply to the further enhancement of our approach to restructuring. All in all, we can state that unsuccessful restructuring efforts lacked the consistent provision of experienced teams and budgets to implement effective projects and/or measures in a timely and systematic manner. The measures taken seemed to be either purely reactive, incorrectly prioritised, and were either difficult or impossible to measure and as such, follow up on.
In contrast, successful restructuring activities exhibit the following similarities:
Timing: The turnaround is planned and overseen early on and in a structured manner
Financing: Liquidity is secured in a manner that is in line with the restructuring plan
Expertise: An excellent turnaround team
Leadership: The executive team and management have the skills and motivation to lead the organisation and business partners through the turnaround
Transparency: Differentiated data transparency is quickly achieved
Methodology: Measures are implemented and tracked in a nuanced manner that protects liquidity based on the company’s strategy
Integrity: Consistent and systematic change management with ‘Program Office’, reporting, and a communications plan to get all employees involved in the turnaround’s progress
To put this into perspective, however, we would like to emphasise that establishing a successful restructuring programme depends heavily on the business model, the respective market dynamics, and how critical the position is in which the company already finds itself.
Illustration 1: Components of the Lansdowne turnaround programme
Learn more about the keys to successfully implementing “sensitive” turnaround and transformation programs by requesting our January Bulletin via email@example.com.