As economic conditions remain challenging, firms are running a gauntlet of issues ranging from short-term squeezes on liquidity to longer-term digitisation and decarbonisation. Against that backdrop, the disruptive challenges facing businesses will be too great for one person to manage on their own and are often too significant for the management team as a whole - given the need to still deliver business as usual. How then, can companies steer through the continued upheaval ahead while trying to forge a path to full recovery and growth? One of the key questions companies are considering is whether additional capacity and/or capability is required to get through this period in good shape.
One of the key questions companies are considering is whether additional capacity and/or capability is required to get through this period in good shape.
In-trays may be bulging across executive teams- and our conversations with clients supports this view especially in the following areas:
None of these multiple and potentially competing demands can be dealt with in isolation. In a business running short of cash, for example, rigorous cost-cutting will be a key priority . But the business still needs to sustain relevance in fast-changing markets. Clear examples include the retail chains that have seen cash reserves depleted by lockdowns, but nonetheless need to invest in the digital engagement customers now expect. Balancing these financial and commercial imperatives requires trade-offs and coordination. And all of this needs to be achieved at pace. This is restructuring at its most complex.
So who can take care of all of these different demands? An increasingly popular option is the appointment of a dedicated Chief Restructuring Officer (CRO) with the expertise and experience to lead complex turnarounds. This could be somebody within your Executive team already, however that will of course take them away from their existing responsibilities.
Alternatively, firms could bring in a specialist CRO from outside the organisation, which not only avoids the need to create a vacancy within your Executive team, but also offers the objectivity and fresh perspectives that could be especially useful right now. The incoming CRO would have no preconceived assumptions about the organisation’s capabilities or potential. They will also have deep experience of what works and what doesn’t in the context of the current complex business environment.
|
Sector |
Hospitality and Leisure |
Oil & Gas |
Technology |
|---|---|---|---|
|
Challenge |
|
|
|
|
Impact of CRO |
|
|
|
The scale and complexity of the challenge, combined with the intense pace required will typically mean that a team solution is required as opposed to one individual. They can carry out the heavy lifting needed to get stabilisation and transformation underway and tackle challenges such as systems modernisation and talent gaps, while allowing in-house personnel to focus on their day jobs.
Chief Restructuring Officer+ (CRO+) is the term we use for this kind of specialist turnaround support. The CRO+ and their team provide advice and support that is tailored to the business’ requirements ranging from more traditional financial and operational restructuring through to digital transformation and decarbonisation.
