Success story: Adapting the company after losing its main client.
Objective: The main objective of our intervention was to supervise the reorganization and adaptation of the company to a new critical situation. Derived from the loss of its main client, which generated 50% of its sales. Faced with this challenge, the following specific goals were set:
– Optimize the company’s structure in all its departments to make it more efficient and sustainable in the long term.
– Evaluate the expected evolution of the business in both the short and medium term. Therefore, establishing progressive recovery and adaptation scenarios.
– Strengthen the company’s information systems, enabling more accurate monitoring of margins and costs of the products and services offered.
Context in which actions took place: The company in question faced an uncertain outlook when its main customer went bankrupt. The immediate consequence was the abrupt halving of its business. This loss generated an inevitable internal crisis. Also, doubts were raised within the group’s management about the company’s viability and survival in the medium term.
This situation of uncertainty was compounded by strong market pressure. New competitors emerged with more efficient structures and lower operating costs. All the above made it necessary to make quick and precise decisions to avoid the company’s collapse.
Actions we took: To address this situation, we implemented a series of strategic actions focused on guaranteeing the company’s operational continuity:
- Budgetary impact analysis: we evaluated the direct impact of the loss of revenue on the income statement. We determined the necessary adjustments to balance the cost structure.
- Cost optimization: We identified the cost items that needed to be drastically reduced. Applying criteria of reasonableness and timeliness to minimize the negative impact on daily operations.
- Reinforcement of the information system: We designed a daily statistics and production report with key indicators. For better control of the company’s financial and operational situation.
- Review of the cost structure: We analyzed in depth the costs and margins of each product and service, as well as the associated administrative circuits. To identify opportunities for optimization and elimination of inefficient processes.
Challenges we had to overcome: The reorganization process was not without its difficulties. Some of the main challenges we faced were:
– Impact on the human team: uncertainty and changes generated concern and demotivation among employees. Consequently, careful talent management was required to avoid further destabilization of the company.
– Loss of financial independence: Until now, the company had enjoyed a favorable financial situation that allowed it to operate with relative autonomy. However, the crisis led it to become more dependent on the group’s support.
– Internal resistance: The administrative manager showed a lack of collaboration in the change process. Consequently, this attitude made it difficult to implement some of the necessary measures.
Constraints we had to respect Throughout the restructuring process, it was essential to respect certain limits to ensure the company’s harmony and viability within the corporate group:
– Group interests: any action taken had to be aligned with the overall objectives of the other companies in the group.
– Conditional support: Although the group had given unconditional support in the past to any approach, the tables were turned. Obviously, the new situation demanded greater justification and efficiency in decision making.
– Existing contracts: It was necessary to respect previous agreements with representatives and vendors, avoiding litigation or contractual disputes.
Results achieved: Thanks to the implementation of these measures, we were able to transform the critical situation into an opportunity for improvement and adaptation. The main results obtained were:
– Adjustment of the profit and loss account: We were able to adapt the income and expense structure to the new reality of the company, ensuring its sustainability.
– Restructuring of the team: The workforce was strategically reduced, and employees were relocated to other companies according to their competencies and skills.
– Increased profitability: By eliminating loss-making services and optimizing processes, the profitability of the products and services maintained was increased.
Demonstrated competencies: This process assessed and reaffirmed our capabilities in several key areas of business management consulting.
– Management skills: we were able to effectively resize the company’s structure, adjusting revenues and expenses without compromising its operability.
– Analytical and synthesis skills: We manage to define relevant and practical reports for strategic decision making.
– Commercial and control vision: We carefully selected the products and services to keep in the portfolio, ensuring a balance between competitiveness and profitability.
This success story demonstrates how a company can overcome a severe crisis with a solid strategy, efficient execution, and detailed analysis of its operations. Adaptation and rapid response capacity were key to turning an adverse scenario into an opportunity for growth and strengthening. It was finally possible and feasible to organize and adapt the company after losing its main client.
