Interim Leadership in Critical Business Situations
Turnaround managers safeguard business continuity and lead companies decisively out of crisis.
When liquidity, financial performance and trust are all under pressure, experienced leadership with a clear mandate is essential. Turnaround managers take on operational responsibility at short notice, establish transparency and consistently implement the necessary measures in collaboration with the company’s employees. Their focus is on operational stabilisation and sustainable performance improvement.
What Does a Turnaround Manager Do?
A turnaround manager stabilises day-to-day operations, prioritises the most effective levers for improving financial performance and liquidity, and leads the implementation of the restructuring plan on site. The role carries an independent, cross-functional mandate with direct responsibility for results and execution. It differs from the traditional mandates of an Interim CEO, Interim CFO or Interim COO, while complementing these roles where appropriate.
- Secure liquidity immediately: Closely manage cash flow, reduce cash outflows and close short-term funding gaps.
- Stop financial losses decisively: Realign costs, pricing, margins, capacity and unprofitable activities.
- Establish reliable transparency: Implement dependable data, integrated planning and meaningful crisis reporting.
- Sharpen the focus of the business model: Strengthen value-creating products, services and customer segments while discontinuing unsustainable areas.
- Actively manage stakeholders: Engage shareholders, supervisory bodies, banks, investors, customers, suppliers and employees through clear communication and alignment.
- Drive implementation rigorously: Define binding measures, responsibilities and deadlines, and address deviations at an early stage.
Independent Role and Flexible Integration
Turnaround managers can be deployed alongside the existing executive management team and in parallel with an Interim CEO, Interim CFO or Interim COO. Depending on the nature of the crisis, the mandate and the governance structure, they may also assume responsibilities typically associated with a CEO, CFO or COO, without necessarily taking on a formal corporate officer role. Clearly defined decision-making authority, measurable objectives and a disciplined implementation cadence are essential.
How Does a Turnaround Management Mandate Work?
A key question is whether a solution concept already exists, whether in the form of a going concern prognosis, an IDW S6 restructuring report or a restructuring plan. If so, the turnaround manager is engaged to implement the existing concept. If not, the mandate includes both stabilising the business and developing a restructuring plan.
Depending on the requirements, VALTUS Management Factory selects the right manager for the assignment. Typically, a turnaround comprises the following five phases:
- Assess the Situation and Define the Mandate: Identify the root causes of the crisis, assess liquidity, map stakeholders and clarify decision-making authority. Determine the need for action.
- Implement Immediate Measures: Secure liquidity, limit losses and stabilise operational risks. Engage stakeholders and safeguard the company’s ability to deliver.
- Define the Target State and Measures: Develop and approve a turnaround plan. Align the business model, financing, organisation and performance improvement levers. Establish an integrated planning model.
- Drive Implementation Consistently: Monitor progress transparently, eliminate bottlenecks and accelerate decision-making. Continuously track results and liquidity.
- Embed Sustainable Stabilisation: Integrate management controls, responsibilities and leadership structures into the organisation. Safeguard the results achieved and lay the foundations for the company’s further development.
VALTUS Management Factory has approximately 100 turnaround managers in its talent pool. Depending on the assignment and industry, we can identify the right experts to meet our clients’ specific needs.
Why VALTUS Management Factory?
VALTUS Management Factory combines Executive Interim Management with Financial Advisory. Turnaround managers assume operational leadership responsibility and, where needed, can draw on Financial Advisory expertise for specialised analyses, going concern assessments, Independent Business Reviews or restructuring plans.
In addition to the turnaround manager, a partner from VALTUS Management Factory supports the mandate throughout its entire duration. For internationally active clients, the VALTUS Alliance also provides access to a global network of experienced executives for cross-border turnarounds and assignments abroad.
When Is It Advisable to Engage a Turnaround Manager?
Engaging a turnaround manager is advisable when operations need to be stabilised quickly and a performance improvement programme must be implemented decisively. Typical triggers include significant underperformance, operational inefficiencies, rising costs, margin pressure, insufficient execution capabilities or an existing restructuring programme that has stalled.
What Is the Difference Between a Turnaround Manager and a CRO (Chief Restructuring Officer)?
While a Chief Restructuring Officer (CRO) typically holds a formal corporate officer role, a turnaround manager can also operate under the executive management team or the management board. The CRO focuses primarily on liquidity, financing and corporate restructuring, whereas a turnaround manager generally concentrates on day-to-day operations. In practice, however, the two terms are often used interchangeably.
Is your company facing a critical period of change?
Talk to VALTUS Management Factory about the right Executive Interim Management solution and the next steps.