STRATEGY CONSULTING GROUP

 
 
              SCG

TRANSFORMATION & TURNAROUND

Transformation in troubled companies, of course, need to transform themselves. But so do the world's most successful companies. Apple's greatness is due to its multiple reinventions. Microsoft will require a transformation to counteract Google, and Google continues to look for opportunities to refashion itself.

 

Many major change efforts do not succeed.  Our experience is that the root causes of failure are rarely unique.  There are some common pitfalls that, in most cases of failure, were simply not attended to sufficiently:
  • Insufficient knowledge and understanding of the facts and key constraints

  • Lack of engagement and alignment of the senior team

  • Managing the effort like a set of initiatives versus an integrated program

  • Forgetting to go slightly slower, to go a lot faster

  • Forgetting the customer

  • Targeting too much of the benefit to occur in the out-years

  • Lack of  transparency and clear ownership of milestones / targets

  • Organizational issues such as change management, culture, and capabilities not addressed head on

  • Declaring victory too soon: failing to follow through and track promised changes

 

Leading a transformation requires specific and acute focus on avoiding these pitfalls.  It also requires rising above the management level to inspire the organization in the case for change and to lead them through it.  But, this is not a black art: armed with the knowledge of what is required and the pitfalls, a committed management team can and will succeed.

 

Over the last five years, SCG has actively supported transformations in every major industry around the world. More than 50 percent of our work is related to collaborating with CEOs to help drive significant, accelerated change.

 

Many of the CEOs and management teams we have worked with are willing to talk to CEOs of companies that are at the beginning of their transformations about what they had to do to succeed. They can speak about what it was like to collaborate with SCG, but they can also address what the change required internally: how they motivated their teams, how they ensured ownership and commitment, and how they made sure the efforts translated into real results—results that the organization owned and sustained after SCG was no longer there.

 

 

Turnaround companies in financial distress face a unique set of challenges. They must ensure short-term survival while preparing for long-term success. If bankruptcy is unavoidable, a robust reorganization plan that addresses the needs of all stakeholders is imperative. To thrive again in these difficult times, companies must answer critical questions such as these:

  • How can we quickly stop the bleeding?

  • How can we release and generate cash to fund our operations?

  • How can we focus on the most viable parts of the business moving forward?

 

Our turnaround approach focuses on the most important operational, strategic, organizational, and financial levers in order to ensure a comprehensive recovery. We can validate an existing turnaround plan or develop a new one tailored to a client’s specific circumstances. By combining our deep industry experience with the proven tools of crisis management, we create lasting impact—fast!

 

These are some of our key client service areas:

  • Stress Diagnosis. SCG’s proprietary diagnostic tool identifies the sources of financial stress, pinpoints areas for improvement, and estimates the magnitude of the necessary changes.

  • Turnaround Planning. We provide the strategic inputs necessary for the turnaround plan, including a comprehensive industry analysis and portfolio implications.

  • Operational Cost-Out Programs. SCG will design and execute a plan for rapidly reducing costs throughout operations.

  • Turnaround Management. SCG coordinates the various parties involved in a restructuring to meet key deliverables and milestones. We track progress and ensure rapid execution.

 

Using battle-tested operations experts, proprietary tools and techniques, and partnerships with leading crisis managers, SCG’s teams are committed to stabilizing clients’ businesses and building their future success.