The COVID-19 crisis is forcing many companies to restructure. Extensive savings programmes, strategy shifts and modifications to business models are becoming more and more frequent – and the number of insolvencies is set to increase. The reality of corona has made corporate restructuring even more complex. Most companies are moving through long-term transformation processes anyway, and there is massive financial pressure and an accompanying sense of urgency. Leeway for decision-making and room to manoeuvre are shrinking, while target-group expectations and the conflicts that go hand in hand with them are growing. Well orchestrated communications and professional process design are more important than ever before.
Restructuring creates stress in all areas of an organisation. The coronavirus crisis only serves to intensify this stress, as the financial pressure demands fast transformation processes, while at the same time it is becoming more difficult to paint a picture of a future worth working towards. Government assistance programmes provide some relief, but also increase complexity. The impossibility of planning with any security leads to higher levels of uncertainty, the generally tense economic situation creates fear among employees and leads to scepticism on the part of investors and lenders. This makes it difficult to generate trust in the chosen course. But without trust in the restructuring project and those involved in it, the transformation process is bound to fail. In order to contribute to making restructuring a success, credible communications must adapt messages and tone as well as process design and timing to the new reality of coronavirus.
Find out what this means in a range of restructuring scenarios in our Special .
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