Strategic Realignment & Cost Cutting

Cut fat not muscle to turnaround and grow.

How do you turnaround a struggling business? Whether you are facing stalled growth, unsupported or out-of-line overhead costs, declining margins and profits, an impending cash crisis, declining market share and customer satisfaction, or organization bureaucracy and dysfunctional processes, RBL can help you find the way to profitable growth.

The most common solutions to struggling businesses generally don’t work.

When a business is struggling, senior leaders, boards, and major investors are wrestling with is a continuum of business improvement solutions that range from finding better ways to grow, improving existing business performance, or reducing costs. a business that’s negatively impacted and struggling. In the face of these challenges, companies typically attempt different approaches: across the board cost reduction, new organization structures, new senior management, rationalizing products, or simply continuing status quo and hoping the market changes. Most companies struggle with a sustainable, impactful solution and research shows that 70% typically fail.

Focus on capabilities that enable the strategy.

RBL has a process that helps companies successfully turnaround and grow. We help them see and embrace the downturn as a critical turning point to make radical but needed changes that create even greater opportunities. We guide them through a holistic, disciplined, and structured process that is strategy and capability driven and aligns the entire organization and cost structures in support of improved performance. We focus them on dramatic actions to right the company—major cost reductions, significant changes in strategy and capital deployment, business realignments, new structures, new senior and mid-level leadership assignments.

As we’ve guided companies around the world through this process, we have seen that when companies can successfully navigate the tension between quick answers and a thorough process to deliver the design with rapid implementation targets, they can achieve remarkable results.

Get back on track to create value for customers and investors.

Companies who embark on this journey are able to solve what feels like unsolvable problems and deliver significant performance improvements and customer successes. Generally, companies are able to significantly reduce costs in the first year, with additional savings in succeeding years. They are able to implement new structures and teams rapidly, and turnaround profitability and achieve growth targets, rapidly increasing share price performance.

Client Examples

A struggling travel and leisure company took advantage of a market downturn to refocus though a comprehensive review of their global business. They consolidated 6 brands, 3 global regions, and 3 competing investment models into a single integrated company and unified leadership team, took out $200m in costs, and realigned global and regional support functions. Over the subsequent two years, their stock price increased fourfold.

A global logistics company was 9 months from an impending liquidity crisis when new management embarked on a life-saving turnaround. Initial cost reductions of $90m in first year, followed by another $100m in second year provided needed investment to rethink and retool their customer strategy and operations network. Their mantra became “pick it up on time, don’t break it, and deliver it on time.” Over the next few years the stock price tripled and they won awards as industry best in class and best place to work four years running.

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