Introduction to Strategic Restructuring

Our Strategic Restructuring proposition recognises the organisation’s urgent needs to reduce costs on one hand, and simultaneously prepare for / invest in medium and long term strategic opportunities on the other hand.

In times of crises there are basically three alternative options conceivable:

1. no change and/or action; hoping the storm will pass
2. drastic cost reduction; effectively reinforcing the organisation against effects of the crisis
3. rationalise to reinforce the organisation in short term and invest in strategic opportunities for medium and long term

Most organisations will acknowledge that option 3 is the most viable. In practice however option 2 is predominantly chosen. Our Strategic Restructuring proposition helps firms to implement the third option.

What is the added value of Strategic Restructuring?

The added value of Strategic Restructuring is in the prioritisation of rationalisation measures and in enabling a strategic reorientation corresponding with the difficult and changing market demands. What’s more is that it recognises the new opportunities that emerge from the changing market situation. Typical results of Strategic Restructuring are cost reductions in the range of 5-20% and margin improvements in the range of 5-10%.

What are necessary efforts before Strategic Restructuring yields any results?

We developed a pragmatic approach to Strategic Restructuring which consists of intensive dialogues with management through a limited number of well prepared workshops. These workshops will result in selection and execution of rationalisation measures (quick wins) as well as a strategic plan to prepare the organisation for future market demands.

What distinguishes NNC’s Strategic Restructuring proposition?

Compared to traditional cost cutting methods, Strategic Restructuring is more strategic, selecting efficiency measures based on the strategy of the organisation. Compared to traditional strategic reviews, Strategic Restructuring is faster and more pragmatic, focusing the analyses on important changes as a result of the crisis and applying knowledge and insights of management in order to concentrate on important, uncertain aspects.