Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the bricks domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/main/public_html/55/wp-includes/functions.php on line 6121
5by5 TURNAROUND – experts in crisis management

5 by5 TURNAROUND MANAGEMENT

5 by5 TURNAROUND

Rely on long-standing expertise in crisis-management
to get yourself backed in the moment of pain.

Rely on long-standing Expertise in Crisis-Management.

Trusted by international brands
Trusted by
major brands

Turnaround

Companies in crisis get tailor-made help through our unique phase-gated turnaround method. Organizations in Crisis require an experienced Restructuring Expert with the right "Spirit" but also a well-funded Framework: Our unique 5by5 Method.

Turnaround

Our unique Turnaround method HELPS jeopardized Missions on their way back from red to green.

A Turnaround is a set of strategies designed to rescue a failing business, an important corporate mission, or project. Depending on the type below, we adapt legal, financial, and organizational 5 by5 procedures.

Strategic

Turnaround

Financial

Turnaround

Project

Turnaround

Operational

Turnaround

Supporting the interest of owners, investors or the management in tech & telco we drive surviving strategy changes in your business entities in crisis. Possible scenarios to appoint us, depending on goals and situation.

In a looming crisis, appointed by the owners or governing bodies, as a Chief Restructuring Officer (CRO), we are preventively tasked with implementing effective strategies to proactively address deteriorating conditions that may lead to severe liquidity issues, revenue crises, or insolvency risks. To achieve this goal, we develop and execute restructuring plans (like IDW S6), foster relationships with stakeholders, engage in negotiations with banks or creditors, and secure the company’s financial well-being and future sustainability. We lead the company through the restructuring journey and support its turnaround initiatives.

If unfortunately, the unthinkable happens, and the company falls into bankruptcy, immediate actions are key to stabilize and turn the situation. In such a situation, retaining control over the company’s decisions often is in the interest of the owners or (alternatively) the creditors. In both cases, proposed by the owners (§270 InsO), or requested by the creditors (§271 InsO), we act as specialized restructuring experts.
Please note, that we’re forced to work closely with a legally mandated custodian, the “Sachwalter”, which is assigned by the court.

Self-administration (comparable to US Chapter 11) has gained importance not only with the introduction of the StaRUG. Upon request, the court (following §96 StaRUG) appoints us as restructuring commissioner. Depending on whether this is optional (§§ 77 ff. StaRUG, application by the debtors) or mandatory (§§ 73 ff. StaRUG, ex officio), we fulfill different tasks. There must be (as a mandatory precondition) no insolvency or over-indebted existing. In addition, there is also no entitlement to insolvency benefits for employees.
We support you with the restructuring plan and its implementation (the aim: restructuring of legal relationships to achieve a fast turnaround).

Restructuring mediation according to sections §§ 94-100 StaRUG is a novelty:
It regulates a non-public (quasi-secret!) procedure in a severe financial crisis to reach an agreement between the debtor and creditors. The aim is to reach a settlement that is largely confirmed by the court and cannot be contested. Prerequisite: no insolvency or over-indebtedness exists.

With an initial time limit of three months and monthly reporting obligations to the court, we provide support in analyzing the current situation and drawing up a proposal for a restructuring settlement.

We are specialized in Tech- & IT-oriented assignments.
In the capacity of a CIO or CTO, we are keen to

  • support you in fighting back for profitability &  operational excellence (operational turnaround)
  • strengthen the position of your IT department and its role in a crisis situation
  • align IT with the goals of your overall strategic turnaround

A financial, strategic or operational crisis needs strong attention. Based on our long-standing tech background we know how to guide C-Levels in this industry sector and scrutinize their turnaround strategies, incl. economic efficiency, compliance with governance rules  (like the German Corporate Governance Codex, similar to §161 AktG), and management style in the era of ongoing disruption, digitalization, and work 2.0.

As well-experienced Crisis Managers we take immediate action, esp. in cases of amounting pressure or losing trust of your stakeholders.
Turnarounds are specific to the organizational level and situation, so are our possible assignments:

As assigned crisis mission leads, we drive planning & execution of cross-company or department-specific ambitions, where we apply an autonomous, agile-driven, and multidisciplinary style of working.
Example: crisis management in the area of M&A, like acquisitions or carve-outs

Jeopardized programs are often of existential importance for associated tech departments and their heads. So, failing programs are often seen as a possible danger to their departments or their own carrier. In such situations, we can replace the current program manager, or -less disturbing- act as co-lead to give the program a new spin.
Example: Rescue operation of an ERP or Infrastructure implementation

If a project fails urgent action is needed to get a better understanding of the situation and necessary actions. If needed, we can act as an interim project manager in such cases.
Example: An kind of isolated technical tasks

Another way of assignment is to act as a Subject Matter Expert. Exemplarily this can be the case in pre- or post-mergers (M&A, Mergers & Acquisitions).

Are you a project leader and want to stay in that position even if you are facing a very challenging project situation? Are you looking for visible or hidden help? In such a situation we can be commissioned as external coaches.
We encourage as well department heads who see their project manager struggle but want the project to succeed.

Engage.

Everything starts with the right engagement. Therefore, streng­the­ning and confirming self-confidence, as well as a relentless 5D Assessment, are essential.

A crisis - if not originated by natural disaster or unexpected external events - is typically evident, but not taken seriously because of deep-rooted habits and beliefs.

We are going to change this with undeniable --even legally reasoned-- facts and chained consequences!

self-confidencealliestrustCourageLegal checkLiability protectionIDW S11value propositionfacts vs. beliefSWOTPESTLUSPObjection handlingIDW S6Emotional resistanceLiquidity statusdisruption

Unfortunate circumstances, lack of seniority, wrong management decisions, too many "alpha's".  ...Often it's a mix that brings the project to a halt.
Therefore (without any fingerpointing), we will re-evaluate the entire project and relentlessly reveal the truth.

Self-perceptiondistanceTrustimagepossible alliesCourageMGMT buy-InFactsObjection handlingEmotional resistanceGo-On Decision
core result

A 5D IPR (Independent Business Review), alternatively, an IDW S6 Continuation Report, is a vital basis to support your ambition to strengthen your own positioning, convince board members or banks & creditors about the current situation and necessary actions.

Fact-based, it reveals the truth to break resistance or existing disbeliefs.

This also includes certificates according to section 270d InsO for the opening of self-administration or protective shield proceedings.

In severe cases an IDW S11 insolvency report evaluates possible insolvency facts.

core result

A 5D Audit (comprising five dimensions), or more officially, an IDW S850 Report, are a vital part to persuade yourself as well as stakeholders, and superior managers. It lays down a fact-based truth to prepare needed decisions.

benefits
  • Clear picture of company situation Clear and unbiased picture of the current company situation
  • Individual liability fully understood Strategies to avoid indivual  liabilities (e.g. §1 StaRUG)
  • Clarification of legal status Clarification on legal status and possible consequences
  • Support of banks or shareholders Banks, creditors or shareholders support a possible turnaround
  • Court or shareholder requests fulfilled Necessary preparation for court or shareholders' requests
benefits
  • Sparring partner on self-confidence Get a sparring partner to reinforce self-confidence
  • Support by possible allies securedSupport by management or other allies are secured
  • Unbiased picture of project situation Clear and unbiased picture of the current project situation
  • Interim ressource funding secured Interim funding secured, to have propper ressources 
  • Go-On decision paper prepared Decision paper is prepared and a turnaround decision expected.

Contain.

In a crisis, painful measures are inevitable. This is, when the expertise of an independent turnaround consultant matters, combining a management background with empathy.

In a threatening risk of financial distress or a strategic crisis, shareholders and creditors (next to possible legal steps) expect to see effective action to eliminate deeper crisis infection and secure future stability.

Specific financial actions and/or measures under corporate law are inevitable in case of existing insolvency or pre-insolvency.

open communicationliquiditytrusttriagedept-equity-swapcash-poolingmezzanineliquidity assetsBGH rulingsM&A (distressed)cost reductionMGMT Stylenegotiationsaligned C-leveltask forceshort-term measures

In a project crisis, not much time is given to stop wasting resources and/or budget. But first of all trust and understanding has to be established within the project organization and external partners.

open communicationtrustEVMbudgetteam buildingtriageclean uptask forceportfoliounravelmitigationgovernance
core result

Triage & Rate is an important step to get the top management united in their ambition to generate instantly visible results.

The method is used in executive workshops to evaluate fact-based current issues and define necessary turnaround actions.

In a pre-insolvency or insolvency situation next to operational restructuring (cost cutting), especially financial, or corporate law measures need to be considered.

Based on the above-mentioned plannings this may include negotiations of possible creditors' waivers, the use of insolvency employment benefits, legal contract terminations under Insolvency law, even debt-equity-swaps, distressed M&A or capital write-downs.

core result

Triage & Rate is our method to get a rating on quick wins based on a magic "triangle" of 5D results, project plan & goals, and optimization potentials that provide clear guidance to the turnaround team.

benefits
  • 360° emergency mode activatedManagement and staff in "360° emergency mode"
  • Right crisis measures applied to survive "Evaluation & Triage" carried out to survive crisis situation
  • Financial stability achie­ved (short-term) Crisis measures focussing on financial stability, even when painful
  • All legal obligations fulfilled (esp. StarUG) Legal obligations fulfilled, especially in a looming crisis (StarUG)
  • Effective crisis contain­ment Effective crisis containment by experienced Turnaround Managers
benefits
  • Project team sworn in & on the same page Honest communication, project team as well as partners sworn in
  • Equal measures regardless of status Unbiased risk mitigation regardless of management level or status
  • The right set screws for every situation Strong project governance applied to improve T/B/Q adherence
  • Changes only where absolutely needed Goals redefined where needed, but kept where possible
  • Right methods applied by experience Right communication and methods applied by experience

Turn.

A sustainable turnaround requires perseverance. Only an extensive interlocking of execution and controlling, combined with strong change management, can pave the way back into calm waters.

Even if the existential threat to the company has been averted, the implementation determines the final success, as it involves the core business, which affects products, services, new TOM's or FTE counts, and thus often also fundamental core beliefs...

New ways needs motived staff with clear guidance and flexible change management.

leadershipcultureorg capabilitiesChange MGMTdigitalizationIT as driverBPMKPIOKRCIPVigilenceKPI/OKRERB'smass layoffsINS-compensationshut down'Scontrolling

After all first emergency measures, the real work - the structured replanning and strictly monitored implementation - only begins. Especially for operational projects, we also implement methods for long-term safeguarding.

SWOTscopebusiness casePPMquality gatesmonitoringRACIPDCAearned valuevendor-mgmtreplanningagileLeadershipKPI
core result

The multi-dimensional Turnaround Execution strongly depends on the crisis situation.

In the event of a strategic/operational crisis or insolvency under self-administration, approved strategies must now be brought to life.

This involves strong, even controversial, change management combined with clear leadership, controlling, as well as, innovation or TQM. Possible corporate M&A task create additional complexity

In the unfortunate event of a irreversible bankrupcy or termination, a final production can still last months. Many legal aspects related to labor and corporate law have to be answered.

core result

Execute & Adapt is about carrying out the implementation of the defined project changes. Our focus lies on strong monitoring but preferably as well on an agile approach using methods like SAFe, to allow flexible responses to changing influences.

benefits
  • Seasoned Turn­around ExecutivesLong-standing Turnaround experience leads to fast success
  • Individually adap­ted executionGuided execution of approved strategies (oper., fin. or corporate / M&A).
  • Focus on modern leadership style A strong focus on the management style will set future collaboration
  • Network of experts for all your questions Dedicated expertise through our network (subject matter experts)
  • Resilient future-proof organization We will make your organization resilient, agile and future-proof
benefits
  • Turnaround management with empathy Experience and empathy is key to a successful turnaround
  • Open project culture & InnovationAn open culture leads to innovation and opportunities
  • Agility of the project organization Agile budgeting & execution adapts to changing requirements
  • Strong controlling but coaching too The right mix of controlling and coaching leads to results
  • Future-proof resilient PM organization We make your project organization resilient and future-proof
Don't take our word
Let our clients speak
Regaining trust
was key to success.
//
Katja Both
Direct Report
CIO ad interim
//
Germany

… Regaining trust was his key to success: Overcoming resistance on all sides and preparing the IT-organization for the start of the new CIO.

Together we  defined a mid-term strategy, he rebuilt the communication between CEO and the IT, and set up a roadmap for each C-Level. Personally, for me (as Head of BI and Processes), he was an open-minded sparring partner.

He acted goal-oriented, on an equal footing, and with respect that enabled us to achieve common goals as a team. I’m grateful he accompanied us on that journey. I would definitely recommend him for comparable assignments.

valuable advisor to restore operational effectiveness
//
Dieter Zeiml
Executive SVP
Chief Restructuring Officer
//
Austria

A focused, strategic forward-thinking advisor!
So I learned Jens (in his assignment as crisis manager) in my role as EVP of SSI IT-Solutions to know.

He –very fast– identified the core issues in our organization, made the board and middle management aware and defined cross-company initiatives to work on needed changes. In discussions about organizational restructuring, process improvements, product strategy or even own management behavior and leadership he was very clear in his communication. If needed, he defended his position, precise illustrating the root cause and chained effects to the organization.

I appreciate his collaborative and sensitive way of work, bringing all parties throughout the organization together without losing focus. He was a valuable advisor on our mission to restore our operational effectiveness.

Inspired and protected his IT Core Strategy
//
Malte Klassen
CEO
Management Advisor
//
Middle East

… was part of a challenging Telco strategy project in Asia where he took over responsibility for the Core IT Strategy of the fixed line and mobile incumbents (46 mio subscribers), called TCI and MCI.

The aim was to create a comprehensive path for both totally separated IT units to be converged and to put them later in a position to offer real FMC (Fixed Mobile Convergence). Strong Business IT Alignment modeling, Innovation Guidance or Governance were additional aspects of his tasks.

Even in contradiction to the already approved Business strategy of both business units, he developed a new convergent, short and long-term IT Strategy with deep implications for the Business.

While having good relations with C- and Top Level Management he was ab to inspire and protect his ideas. He acted with high professionalism. From my point of view -as a principal contractor- he was an excellent choice for this project.

We are turnaround experts
Ready to Help
Let us find out how we can support you. Whether the scaling of your company fails or you are having trouble with a strategic mission.
With our 5by5 method, we are paving the way back into calm territories.
Let us find out how we can support you.