BUSINESS TRANSFORMATION CONSULTING

The current exigent demands of markets make it vital for organizations with moderate-to-high performance and minimal influence from external pressures to always remain on transformation. Preemptive business transformation carried out proactively during ace performance is known to have a lower rate of failure, generate superior values, and stay resilient during turbulent business headwinds. Organizations leading new frontiers cultivate driving factors for change by creating challenging hypothetical scenarios and expanding upon current challenges to envision potential threats and evaluate current levels of business model resilience. This mindset facilitates quick, forward-looking action during early indicators of crisis– enabling proactive transformation before the bottom line of the business is affected. Development of enhanced transformational capabilities of the organization, and embedding of these capabilities into processes, foster a culture of innovation, adaptability, and expansion of new ideas. Cognitute’s business transformation consulting solutions activate an unparalleled framework that is anchored on deep analytics and insights inferred from over a thousand signals within the strategic business environment, and from the global marketplace–Analytical insights that are imperative to craft a superior transformation journey roadmap to yield lasting outcomes and sustained growth.

Organizations face disruption from all known market dimensions, including increased market volatility, geopolitical shifts, trade wars, and variations in growth rates. Reactive business transformation incorporates a long-term change of business strategy in response to declining shares in the market or decreased profitability. In recent times, executives have begun to realize–reactive transformation presents a challenge, as there is a high correlation between the success of transformation and the current degree of outperformance in the industry. For which it is imperative that the transformation vision, processes, and transformation blueprint are aligned to the broader strategic outcome–preventing further decline in profits, reduced market share, and restraining the crisis from further progressing into liquidity. Underperformance creates a tangible sense of urgency for any organization irrespective of the markets they are operating in–Propelling transformation through quick decisive action by freeing up capital and creating short-term wins is the key to shedding off pressure and retention of working capital. This short-term increase in revenue and decrease in costs allows both growth and transformation initiatives to be funded and deliver almost-immediate results to the business bottom line. A focus on success in the medium- and long-term can then be established during the transformation blueprinting phase. Cognitute’s company transformation models are structured to distill complex operating models, pivot towards recovery, and generate short-term wins, thereby relieving unwarranted strain on core transformation goals–yielding high-impact strategic outcomes, fortified resilience, and superior total shareholder returns.

Stagnating or decline in revenue, sales, operating profits, and recurrent cash burns are early indicators of potential downfall–If a counter-strategy was not implemented at a nascent stage to identify and tackle these amber signals then business turnaround would be the preeminent solution to rail the organization back to its recovery trajectory. A superlative business turnaround roadmap emphasizes milestones for stakeholder management, management of capital, and liquidity management if necessary. Unlike transformation, turnaround begins with a rigid focus on short-term effects. Initially, this involves “triage” to create a realistic view of losses, and threats, and to identify priority areas that require critical improvement–Transparency of liquidity across all units, launching short-term measures to free up capital within a short spell, including improving working capital and postponing investments, allow liquidity to be maintained, ensuring that operation can continue. After stabilization of capital and liquidity, a well-crafted pricing strategy is crucial in the short-term revenue stabilization phase of a business turnaround, where cost reduction measures are also implemented to prevent further cash burn and prioritize critical improvement areas. Turnaround consulting with Cognitute is structured not just to establish a successful recovery path but to spur growth, move markets, and orbit into leading new frontiers within a short period of stabilization.

Organizations that fail to extirpate operating profit crises through business turnaround risk spiral into a liquidity crisis. Continued cash burn and fall in the capital could also lead to insolvency. During a liquidity crisis with continued cash burn and a further reduction in sales and market share, businesses must respond quickly to ensure survival. Initially, leaders need to focus on stabilizing business operations, strengthening balance sheets, boosting cash flows, and then launch a transformation program to ensure the creation of sustainable value in the long term. Repairing and revitalizing essential stakeholder relationships can also be achieved through restructuring, which is critical for returning to mean industry performance benchmarks. However, the processes required to traject from insolvency to business revitalization are complex with high-stakes, but business restructuring with expert consultants guarantees business revival through short-term strategies. Cognitute’s proprietary restructuring framework is agile to tether through different needs of the organization, be it during a merger, buyout, or during financial duress. Our corporate restructuring services assists organizations manage their liquidity, capital, and transition out of thriving mode to a path of long-term sustainable impact generating unequaled total shareholder returns.