1. audit
- Liquidity:
- Overview of loans, bank balances, cash, receivables, and payables
- 13-week liquidity plan
- Cost analysis: materials, personnel, SGA
- Loss-makers: products, customers, sites, regions
- Market & competition: Initial assessment
2. survival
Liquidity Office
- Weekly prioritization of expenditures
- Individual check & clearance of payments
- Ensure compliance through clear board instructions
Financial Breathing Space
- Review of liquid or quickly liquidatable funds
- Comprehensive assessment of all loans
- Renegotiation of overdraft facilities
Immediate Liquidity Measures
- Spending freeze for entire organization
- Adjusted payment terms for customers & suppliers
- Reduction of receivables & inventories
3. realignment
Structural costs
Organization and Leadership
- Performance analysis of personnel costs
- Leadership spans in relation to performance
- Management targets & key performance indicators (KPI)
Other Operating Expenses
- Reduction of spending limits for executives
- Reduction of comfort level fleet & travel
- Review of infrastructure (IT, rents)
Product Portfolio
- Calculation of relevant contribution margins
- Separation of volume vs. niche business
- Reduction of complexity in portfolio
Value creation costs
Production Sites
- Concentration/ relocation of sites
- Reassessment of make-or-buy decisions
- Evaluation of lead times, on-time delivery, quality
Purchasing
- Purchasing volume vs. number of suppliers
- Order process, approval, supplier selection
- New tender, renegotiation suppliers
Sales and Marketing
- Weaknesses of regions & channels
- Customer margins vs. customer potentials
- Reactivate lost customers, go online
Warehousing and Logistics
- Inventories turnover
- Order processing & logistics
- New tender for packaging & transport
4. growth
Strategy and structure
Strategy and positioning
- Business segment analysis (SWOT)
- Identify performance leaders, niche products
- Elaboration of core competencies
Target organization
- Transparency on performance of functions
- Identification of drivers of complexity
- Sizing to target
Product-market-concept
- Matching customers with product portfolio
- Simplification of portfolio
- Expansion of service offerings
Operational management
Pricing and payment conditions
- Set prices based on margin analysis
- Structured discount policy
- Link discounts to customer margins
Distribution
- Focus on customer potentials
- Review price calculation (bottom-up)
- Strengthen contract implementation
Management system (performance management)
- Company-wide KPI system
- Target-based budgeting and planning
- Incentives for decision maker