Organizational Structuring and Restructuring
Organizations must continuously evolve and adapt in order to succeed.
Changes in the industry, regulatory requirements and customer demands all drive the need for changes in design, systems, people and culture. To respond smoothly to this ever changing landscape transition is a paramount challenge and a good number of organizations experience hard times to either evolve and adapt or seek smooth exit.
Our Organizational Effectiveness capability brings together deep functional expertise and industry knowledge to enable the whole organization to work in service of its strategic vision.
Backed by years of experience, Shubhankar acts as a trusted advisor to organizations and investors as they take on the challenges of strategic, operational and financial management.
We place a high priority on developing sustainable structuring and restructuring concepts that address both the market and the competitive environment as well as specific factors for success. Shubhankar acts as a coordinator for restructuring processes, as an objective expert and a neutral third party who provides quantitatively supported advice to address the interests of management, shareholders, lenders, and other stakeholders.
With more than two decades of experience in strategic, operational, and financial restructuring, Shubhankar offers a complete management solution and "one-stop-shop" approach to turning around companies.
Organizations Approach to Respond to Either Changes or Refinement to Evolve and Adapt
Independent Business Reviews (IBR)
When an outside-in assessment of a company in distress is required, Shubhankar can leverage its deep industry expertise and extensive restructuring experience to identify risks and opportunities, which are then used to assess business plan revenues, profits, and cash flows. Special attention is paid to the viability of the operational design and the ability of the organization to win against its competitors.
Using benchmarks and best practices from industry peers and our toolbox of methods to achieve operational excellence, we also give concrete recommendations on how to improve profitability and liquidity—often even beyond what was planned in the original business plan.
Hence, our IBRs are more than reviews; they create real value for the organization.
Development of Structuring and Restructuring Approaches
In devising sustainably successful restructuring approaches for clients, Shubhankar draws on our deep base of knowledge about market trends and specific success factors, our far-reaching expertise in operational excellence methodologies, and our solid grasp of the needs and options of various financial sponsors (i.e., equity/borrowed capital). We take an integrated approach in this work, and we base our restructuring concepts on four pillars:
- Strategic repositioning: The focus is placed on core markets and potentially profitable operating fields. Business that portion of operations that destroy value will be closed or divested.
- Value-focused business model: Using our approach called value-driven business design, we optimize such business drivers as a company's customer, product, and technology portfolio, define core skills, and bring the organization into alignment with the strategy.
- Operational excellence: The focus is placed on lean organizations and processes. In particular, this work is aimed at simplifying production networks and increasing efficiency and effectiveness by applying such methodologies as LEAN and Six Sigma. In addition, purchasing and the entire supply chain are optimized.
- Financial restructuring: On the basis of the strategic repositioning work, the value-focused business model, and operational-excellence programs, we determine liquidity needs and the requirements for a sound capital structure through the use of integrated financial planning. This creates the foundation for a financing concept that optimally weighs the interests and decision-making freedom of all participating parties.
How Shubhankar Consulting Can Help Your Organization
Shubhankar Consulting draws from a broad base of knowledge about industries and methodologies to help carry out structuring and restructuring projects in a quantitatively-based and methodical manner. Areas of expertise include:
- Strategy & Growth
- Sales Efficiency
- R&D and Productivity
- Production Optimization
- Lean Management
- Procurement & Supply Chain
- Organization & Processes
- Mergers & Acquisitions
Program Management and Communication during Structuring
Careful monitoring of the project's implementation is key to its success. Also vital is keeping all stakeholders up to date on the status of implementation, transparently reporting potential problems. Effective communication enables barriers to implementation to be identified at an early stage and then removed. Shubhankar assists with the implementation of restructuring programs in a number of ways, including:
- Monitoring the implementation and the achievement of planned improvements—using a web-based program-management tool if necessary
- Delivering regular reports to management, owners, and financial stakeholders about the latest business performance (sales, earnings, liquidity) as well as the implementation status of the project, potential problems, and necessary responses
- Performing ongoing liquidity management (including rolling liquidity projections, liquidity-bolstering steps, and potential problems)
- Supporting communications activities about the restructuring program within the company and to external stakeholders