During a crisis it is crucially important to act in time and to introduce initiatives for the strategic realignment and operational improvement. Short-term cost reduction and liquidity activities do not suffice to convince financers of the company’s success. Thus, the management and its entrepreneurial behavior become the major success factor for crisis management.
This idea is not new. However, a lot of restructuring projects still fail due to apparent leadership problems; sometimes because the need for action is not recognized on time or there is disagreement about the objectives and topics of the restructuring. How can companies and their investors identify a crisis at an early stage? What is the ideal mix of measures for the given situation? And how should the restructuring process be structured to tie in all stakeholders and secure a sustainable implementation?
The Oliver Wyman publication “Leadership in times of a crisis – Sure, but how?” deals with these questions based on the statements of more than 100 experts of companies and investors.
The results lead to a clear insight: It’s the corporate management itself who can successfully avoid or handle crisis – even though this requires rethinking in several areas.