An image of a snow avalanche referring to how bankruptcy is an avalanche in slow motion

Bankruptcy – An Avalanche In Slow Motion

Posted 1 CommentPosted in Situations of Rapid Change
“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.” “What brought it on?” “Friends,” said Mike. “I had a lot of friends. False friends. Then I had creditors, too. Probably had more creditors than anybody in England.” Ernest Hemingway, The Sun Also Rises Entrepreneurs and executives with experience in […]
Tsunami image representing the amount of bad debt coming after the coronavirus pandemic

A Tsunami of Bad Debt is rolling to our shore, to drown unexpected parts of the economy – and how to survive

Posted 1 CommentPosted in Situations of Rapid Change
Bankruptcy rates are closely linked to GDP volatility. In OECD countries the regular insolvency rate is around 8%. Though dramatic for the individual firms, this is a healthy process for the economy, as part of economic Darwinism, selecting the weakest market participants. Companies, failing to adapt to changing market conditions as a result of inertia, […]
Benjamin Franklin on a dollar bill with a facemask - Coronavirus effect in the economy

Coronavirus and the Economy – Severe Risk of Bankruptcy and Financial Turmoil for SME Firms

Posted 2 CommentsPosted in Situations of Rapid Change
COVID-19 has quickly evolved from a far-away tragedy, to what is now also a large economic threat to businesses all around the world. Numerous companies are finding themselves, suddenly facing situations of rapid change, where the dynamics of the transformation process are forced from the external and keep accelerating. Due to globalization, supply-chain processes, and […]

What´s love got to do with it? – should shareholders worry, if the CEO gets divorced?

Posted 1 CommentPosted in Situations of Rapid Change
Chief Executives carry the responsibility for shareholder returns, numerous jobs, and compliance of the firm on their shoulders. Workdays are never finished after 8 hours, and weekends are generally not off. Top leaders are assumed, to rely on a stable and supportive relationship, to emotionally balance for the responsibilities and stress levels associated with the everyday […]
fierce Praetorian guards in battle; corporate balance triangle

The Non-Executive Board – Praetorian Guard against Activist Shareholders

Posted 1 CommentPosted in Situations of Rapid Change
Activist Shareholders raise their voice over the legitimate interest, associated with their actual investment. This is competing with the economic interest of other shareholders. Activities of Activist Shareholders are also eligible to distract the management’s focus and attention. The role of the Board of Directors (BoD) includes to balance the different spheres of interest and […]
Activist Investors - a dwarf in the middle of a board of directors

Activist Shareholders – The role of the mean dwarfs in SME companies

Posted 1 CommentPosted in Situations of Rapid Change
Management is facing investors, engaging directly in strategy and operations. The perception of Activist Shareholders is ambivalent. The impact on the company can vary from delivering higher returns but also causing significant inefficiencies. For the management, it is a thin line, how to answer to calls from shareholders, in order not to disconnect from its investors, but also not […]

All investors are equal, but some are more equal than others

Posted 2 CommentsPosted in Situations of Rapid Change
The common understanding of investors is over-simplified. Authorities disregard irrationalities, as well as degrees of financial sophistication. The idea, of an idealized rational investor is flatten out the spectrum of different investor types. This creates misalignment with regulations as well complexity for investor relations. Current research identifies five major types of investors, based on behavioural […]
strategic leadership for effective boards

The Board of Non-Executive Directors – Toothless Tiger or Turbo for growth and corporate development

Posted 5 CommentsPosted in Situations of Rapid Change
The Board of Non-Executive Directors (BoD) can contribute significantly to the long-term and sustainable growth of a firm and offers similar benefits as good (and expensive) top consultants or strategic departments in the corporate landscape. The role and composition of the BoD determines success or failure in everyday life. On the other hand, increasing competition, […]

All good things come to an end – lack of strategy is the major cause of death in the corporate world

Posted 1 CommentPosted in Situations of Rapid Change
Following the right strategy is the key to long term going concern of a firm. As markets keep ever-changing, for mature companies, it’s vital to review the implemented strategies and also foster adaptability to new market conditions; whereas Start-Ups are observed to launch with mistaken market assessments and competitive strategies into the rough waters of competition. Both observations are […]