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 […]
man frustrated around books - are all the books about turnaround the same

We have all read the same books?! – Yet, performance in turnaround management varies widely

Posted 3 CommentsPosted in Situations of Rapid Change
If the executive team gets stuck in any of the five stages of the “process of depression” during the turnaround management, it is likely to lead to the bankruptcy of the firm. Severe troubles of a firm are often paralleled by a situation of rapid change, where the dynamics of (involuntary) transformation keep accelerating and exceed the […]

Why turnaround specialists are always called in too late to distress firms

Posted 3 CommentsPosted in Situations of Rapid Change
It is fair to say, turnaround specialists, are often onboarded in the very last moment of distress situations. For firms, this can be dramatic, as the onboarding of a turnaround professional increases chances for going concern from (only) 12.5% to more than 90%. Reasons are linked to the degree of the ability of an organization […]
man playing poker - going concern

Turnaround a company for going concern? Rather go to Las Vegas!

Posted 2 CommentsPosted in Situations of Rapid Change
To secure going concern for a firm, a turnaround professional should on-board before the final struggle for economic survival has begun. If waiting too long, going concern is at stake and it is more promising to go to Las Vegas, to preserve investments. The suck of the downward spiral Root causes for distress situations putting going concern at stake […]

How long should it take, to turnaround a company?!

Posted 2 CommentsPosted in Situations of Rapid Change
Steve Tobak from CBS MoneyWatch identifies three phases for a turnaround, in a situation of rapid change. The most important initial starting point of claiming control over the turnaround process is forgotten. When on-boarded, stopping the firm’s downward trend is critical and the core objective of the turnaround CEO. This aims for multiple stakeholders, including investors, […]