Business turnaround and cost reduction
Rapidly turn a failing business around and refocus on profitable growth.
Companies in financial distress face a dual challenge: securing their survival in the short term while building for long-term success. A business whose sales and profit are in decline or free fall must answer a number of critical questions if they want to avoid total failure. These include:
- 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?
How TCii can help a failing business
TCii helps companies in crisis situations to establish a solid operational and financial basis that ensures their survival and profitable growth. By following our recommendations, a troubled client is able to improve its cost/revenue balance and refocus on areas of highest potential.
Our key services to clients in difficulties include:
- Turnaround planning. We provide the strategic inputs essential to the turnaround plan, including a comprehensive and detailed analysis of the business’s internal costs, customer base, market and competition. We also set out any implications for the product portfolio.
- Operational cost take-out programmes. We design and execute a plan for rapidly reducing costs throughout the company’s operations.
- Turnaround management. We coordinate the various parties involved in a restructuring to meet key deliverables and milestones. We track progress and ensure rapid execution.
If you have already drawn up a turnaround plan, we can validate it for you to make sure it covers all the elements crucial to your company’s recovery. Or we can develop a new turnaround plan tailored to your specific circumstances. Our industry experience, combined with our crisis management expertise, produces a turnaround plan that will have a lasting impact on your business.
How cost reduction helps a business thrive in the long term
A high proportion of industry leaders consider cost leadership to be their key competitive advantage. A low-cost position allows a business to:
- out-invest rivals in areas such as R&D and marketing while maintaining attractive margins
- use their resources to capitalise faster and more readily on new opportunities
- take advantage of their increased price flexibility to capture market share.
Not surprisingly, then, most companies routinely try to lower their costs. But few succeed in making the cost savings stick. Those that do manage to reduce their costs and keep them low typically follow a common path:
- They set targets based on external, market-based data, rather than on internal benchmarks.
- They tailor cost-cutting efforts to their strategy.
- They get the metrics right.
- They focus on the “seams” of the organisation, not just on individual units.
Importantly, they also make huge efforts to embed the message throughout the entire organisation. If you do this, your business will soon develop a new consciousness and culture in which keeping costs low is a primary objective. This is the key to delivering sustained cost savings year after year.
Turnaround and cost reduction case studies
Read how we turned a retail business around:
and how we achieved a substantial cost reduction for a consumer goods company:
Next steps to a business turnaround and sustainable cost savings
Is your business in crisis? Find out how to stabilise it and focus on sustainable, profitable growth by emailing us or calling us on 020 7099 2621.