comprehansive approach on how to adress corporate crisesand resolve
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"Crisis" (Greek): 1. a stage in a sequence of event s at which the trend of all future events, especially for better or for worse, is dete rmined; turning point. 2. a condition of instability or danger, as in social, economic, poli tical, or international affairs, leading to
a decisive change. 3. a dramatic emotional or circu mstantial upheaval in a person's life. 4. the point in a play or story at which host ile elements are most tensely opposed
to each other.
In Chinese, to set the font symbol for crisis toget her from 2 characters:"Danger" and "opportunity"
Crisis is a subjective state after a suddenly occur ring, life-changing event that, where affected humans often are (temporarily) overwhelmed with the resolution.
Turnaround and Crisis Management
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Liquidity problems
Decrease in sales
Endangered equity
Uncompetitive cost base
Strategic reorientation
Drop in prices
Negative earnings
Earnings lower than target
73,9%
69,6%
65,2%
60,9%
56,5%
43,5%
43,5%
8,7%
Roland Berger Study, 2006
Most common causes for corporate crisis
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Sco
pe fo
r Act
ion
Small
Large
Nee
d fo
r Act
ion
Large
Small
Urgency
Time
STRATEGIC
CRISIS
EARNINGS
CRISIS
LIQUIDITY
CRISIS
INSOLVENCY
Dynamic and logic of corporate crisis
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How to tackle the challenge: The turnaround resolut ion cycle
� Identify extra sales and earnings potential- Focus on quality of
customer handling- Enter complementary
markets
� Choose unusual market entry or exit strategy
� Focus on the profitable elements of the value chain
� Develop a business model that creates value
� Optimize business units/ jettison non-core business segments
Organization Target markets Business model
2. Phase new capabilities: The path back to value
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Use the ep Transformation Canvas: Change is critical
ep Transformation ep Transformation ep Transformation ep Transformation CanvasCanvasCanvasCanvas
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1. MANAGEMENT COMMITMENT & LEADERSHIPThe most important success factor in restructuring – implementation has room for improvement
2. HOLISTIC CONCEPT – Strategic, Operational and FinancialVery important (P&L, balance sheet, cashflow, strategy, systems) – implementation has improvement potential
4.
QUICK IMPLEMENTATION – Speed is of essenceRated as very important; but low rate of early warning systems implementation
Critical success factors of turnaround management
3.
TRANSFORMATION MANAGEMENT – without Change no results Create the energy and build new capabilities with involvement and up-skilling
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Überblick: Experten in Reorganisation / Turnaround
Clemens Frowein
Studium des Wirtschaftingenieur-wesens und der Betriebswirtschaft anden Universitäten TH Darmstadt und JWG Frankfurt / Main. Assistent desVorstands bei einem führenden Systemhaus.
Von 2004 bis 2010 war er Gesellschafter bei HLP Hirzel Leder & Partner,seit 2011 Partner bei HLP entwicklungspartner GbR.
Clemens Frowein berät mit den Schwerpunkten Unternehmens- und Geschäftsfeld-strategie, Innovationsmanagement, Projektmanagement und Organisationsentwicklung. Nach Branchen liegen die Erfahrungen in der Konsumgüterbranche, Chemische Industrie, Dienstleistungsbereich, bei ITC Diensten und auch im landwirtschaftlichen Bereich. Er unterstützt Unternehmen in der Orientierung, der Geschäfts- und Organisations-entwicklung, wobei in besonderer Weise „harte“ Faktoren (Geschäftslogik) kombiniert mit „weichen“ Faktoren (Dynamik der Menschen und Organisation) in den Blick genommen werden. Veröffentlichung zahlreicher Artikeln und Beiträgen sowie Vorträge zu den Themen Strategie und Innovation.