Restructuring needs system and speed

Restructurings rarely fail for want of a concept; they fail in the execution. In strained situations in particular, SMEs need rapid transparency over liquidity, costs, responsibilities and operational risks.

An anonymised example from the construction sector shows which levers can be decisive in a turnaround: a mid-sized general contractor building single-family homes in solid construction finds itself in an increasingly critical situation after being acquired by a foreign private equity investor.

Alongside a demanding market environment with falling demand and rising regulatory requirements, it is above all internal weaknesses that come to light:

• a lack of construction and market expertise on the investor’s side
• insufficient transparency in costing, controlling and reporting
• opaque cost structures and unclear responsibilities

The consequences are clearly felt: growing liquidity shortages, operational uncertainty, declining employee satisfaction and rising dissatisfaction among customers.

Setting objectives

At the heart of the restructuring is a clearly defined target picture:

1. 1

   Short term

   Securing liquidity and stabilising operations.

2. 2

   Medium term

   Restoring the ability to steer the business.

3. 3

   Long term

   Positioning as a lean, profitable and competitive general contractor.

What matters is the ambition not merely to work conceptually, but to implement the measures rigorously and to operational effect.

Operational implementation

The restructuring has to be implemented along clearly defined fields of action - with a strong focus on speed, transparency and accountability.

Creating transparency

A robust basis for steering the business has to be created within a short space of time:

• introducing integrated monthly reporting
• building a rolling liquidity management process
• migrating the accounts to a standardised ERP system

These measures enable fact-based management of the business in real time and form the foundation for every further decision.

Costing and earnings quality

A central lever for sustainably improving profitability is to realign project costing:

• introducing binding pre- and post-calculation
• establishing clear margin requirements
• systematic tracking of variances

In parallel, construction contracts have to be revised so that risks - particularly in exceptional events - are properly reflected in contractual terms.

Organisation

The organisational realignment follows principles of efficiency and clarity throughout:

• streamlining management structures
• clear definition of roles, responsibilities and decision-making paths
• targeted adjustment of the cost structure

The aims are a markedly higher implementation speed and better internal coordination.

Strategic anchoring

A structured strategy process ensures that operational measures and long-term direction mesh consistently:

• holding strategy workshops with the investor, the board and the executive team
• developing a clear roadmap with prioritised initiatives
• integrating scenario planning and an exit strategy

This creates a robust basis for investment and steering decisions.

Change management

The operational implementation is accompanied by rigorously managed change management. This comprises:

• transparent and regular communication across all levels
• actively involving employees in the change process
• targeted development of managers

The aim is a tangible stabilisation of the organisation and the restoration of trust and willingness to perform.

Operational focus

Targeted structural measures are implemented to reduce complexity further and increase efficiency:

• selling a foreign site
• centralising Swiss operations

This reduces organisational duplication and simplifies decision-making paths. That focus makes clear prioritisation and more efficient use of resources possible.

Success factors

Whether restructuring measures are taking hold shows in measurable factors:

• halting the outflow of liquidity
• stabilising revenue at a sustainable level
• improving employee and customer satisfaction
• restoring operational control

In brief

• Restructurings need a clear approach: secure liquidity, create transparency, clarify responsibilities and make risks visible.
• Reliable steering instruments are decisive: reporting, liquidity planning, post-calculation and clear decision-making paths.
• Restructuring measures only work when they are implemented with speed, clear leadership and a sense of obligation.
• Whether measures are taking hold shows in steadier liquidity, improved control, clear leadership and growing trust within the organisation.