Can Businesses Recover in Times of Uncertainty?
This year, TMA Europe’s Annual European Conference will be hosted in Madrid on the 9th and 10th of June. The theme of this year’s conference is ‘Recover, Reconstruct, Reimagine’ and so for the next three months running up to the conference we are going to delve in to this theme and the business, economic and political environment in which Certified Turnaround Professionals are currently operating.
Beginning with ‘Recover’ we reflect on the uncertainty currently plaguing the business environment and how businesses might approach recovery in times of uncertainty.
A Perfect Storm
As many businesses are still in recovery mode following the impact of the pandemic, a combination of complicated geopolitics, the Russia-Ukraine conflict, supply chain disruption, accelerating technologies and the climate crisis are creating a perfect storm for European businesses.
With all this uncertainty following on from the unprecedented nature of Covid-19, there is a general feeling that the pressures facing businesses are unmanageable.
Industries under particular pressure right now include:
Manufacturing – affected by supply chain issues, increasing energy costs and inflation
Airlines – affected by high fuel prices, high fixed costs and fluctuating demand
Energy – affected by the Russia-Ukraine conflict and high market competition
Oil and Gas – affected by the Russia-Ukraine conflict and geopolitical tensions
Retail – affected by consumer confidence, staff shortages and supply chain disruption
Agility and Planning is Key
While it may not feel like it when presented with the challenge of leading a business during uncertain times, CTPs will know that uncertainty can also be an opportunity for businesses, particularly those that are smaller and more agile.
Large businesses rely on stability and predictability, but due to their size, most should be able to weather the storm of uncertainty. Shell, for example, which recently had to write-off up to £5 billion in assets after exiting Russia, will survive the hit.
But many small and medium-sized businesses can and should be able to react to fast-moving changes, cutting products or services that are no longer profitable or easy to provide and developing new lines of revenue.
Scenario-based planning, flexibility, up-to-date management accounts, robust cash-flow forecasting, and real-time data monitoring should all be part of any business’ regular activities but are essential in times of uncertainty and recovery.
Objectivity is Often Necessary
While many business leaders are excellent at running their companies, in times of uncertainty, an independent, objective and uniquely skilled professional is often needed. However brilliant the management team are, change is often difficult to stomach when so much time and effort has been put in to building a business in a certain way. Whether they know it or not, Directors and managers are often emotionally attached to their way of working and the products, services and teams they have developed. Such attachments can cloud the judgement of even the best business leaders in terms of the actions that need to be taken to survive.
This is where Certified Turnaround Professionals are invaluable assets for businesses in need of a plan to aid recovery and weather uncertainty. As independent advisors, turnaround professionals don’t have the same emotional attachments, so it is easier to accurately assess businesses, find out what’s working and what’s not, and without emotion, address issues and make the changes that are necessary for the survival and recovery of the company.
The EACTP’s Panel Session at the Annual European will explore this topic further by sharing real-life empowering CTP stories about business recoveries in critical operating environments. The panel, which will be made up of Dr Alberto Cerini, Vlad Nastase, and Dr Volker Beissenhirtz, will take place at 11:45 on Friday 10th June and we hope to see many members there.
Join the EACTP at the TMA-Europe Annual European Conference in June
The EACTP is a partner with TMA Europe and as an event sponsor of the Annual European we will be there to participate in discussions, share expertise and updates and facilitate networking opportunities for our members.
EACTP members can benefit from a generously discounted ticket rate and we hope to see you there.
Find out more about the conference here and buy your ticket here.
About the EACTP
The focus of the European Association of Certified Turnaround Professionals (EACTP) is to educate, train and certify turnaround professionals and for the CTP qualification to be recognised as an industry-standard ‘kitemark’ of quality in the practice of turnaround and restructuring.
It aims to promote turnaround ahead of insolvency, thus saving more jobs and value in the public and national interest.
The EACTP promotes the benefits of turnaround ahead of insolvency through engagement with shareholders, company directors, business management organisations, creditor groups and governments.
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