Speed to Success: Why Supervisory Boards Need a Turnaround Expert in Times of Crisis
Rüdiger (Rudy) TIBBE
Senior CRO | Proven Turnaround Authority I Strategist & Execution Leader | Hub for Stakeholders in Transformation & Turnaround | Leveraging an Elite Network to Drive Results and Align Interests
In most corporate crises, the first instinct is to bring in restructuring experts to join the management board. This focus is natural, as the management team is responsible for day-to-day operations. However, the guiding and ruling instance—the Supervisory Board—often remains disconnected from the turnaround process, whether due to a lack of detailed information, distance from the operational reality, or simply being outpaced by the speed of unfolding events.
In our experience, having worked on several turnaround cases, we have seen firsthand how introducing a Special Advisor with transformation and turnaround expertise to the Supervisory Board can make a significant difference. This involvement helps align the board with the company’s recovery strategy, ensuring smoother execution and, ultimately, speeding up the path to success. With the right advisory support, the Supervisory Board becomes an active participant, guiding the process efficiently and driving faster results.
Why Introduce a Turnaround Expert to the Supervisory Board?
Restructuring situations are characterized by high-stakes decision-making, rapid responses, and complex stakeholder management. While management teams are focused on immediate firefighting, the Supervisory Board must ensure that strategic oversight is maintained and long-term goals are not lost in the chaos. This is where a specialized external advisor comes in:
1. Closing the Gap Between Strategy and Operations
In many distressed companies, the Supervisory Board is removed from daily operations, and the management team leads the charge on implementing crisis measures. However, when a Special Advisor with deep turnaround experience is introduced at the board level, this gap between strategy and operations closes. The role as an advisor is to help the board understand the operational realities on the ground while maintaining a strategic perspective. This creates a unified approach, ensuring that decisions being made align with the overall recovery goals of the company.
2. Accelerating Decision-Making
Time is a critical factor in any turnaround. The longer it takes to implement necessary changes, the harder it becomes to save the business. By introducing a turnaround expert directly to the Supervisory Board, decision-making processes become faster and more streamlined. Our experience enables us to quickly assess the situation, recommend practical solutions, and help the board take decisive action without unnecessary delays. This ensures that the company moves from crisis to recovery in the shortest possible time—speed to success!
3. Bringing a Fresh, Unbiased Perspective
An external Special Advisor brings a fresh set of eyes to the situation, unclouded by internal politics or historical decisions. A third party offers an objective, unbiased perspective that helps the Supervisory Board see the bigger picture and identify the root causes of the crisis. This outside view is essential for developing solutions that are not just reactive but forward-thinking and sustainable. By guiding the board through these insights, we help ensure that their decisions are informed, balanced, and geared toward long-term success.
4. The Tandem Solution: Supporting the Acting CRO
Another significant advantage of introducing a Special Advisor is the potential to create a tandem solution with the Chief Restructuring Officer (CRO). As a restructuring expert, the Special Advisor can act as a support and advisor to the acting CRO, ensuring that both the board and management are aligned in their approach to the turnaround. This partnership provides an additional layer of expertise, creating synergy between the board's strategic oversight and the CRO's operational execution. In times of crisis, this tandem can significantly enhance the speed and effectiveness of the turnaround process, ensuring a coordinated and well-executed recovery plan.
How the Special Advisor Supports the Supervisory Board
When a Special Advisor is introduced to a distressed company, his role is to support the Supervisory Board in navigating the turnaround process, ensuring that they are fully engaged and effective in their oversight. Here’s how he will contribute:
1. Aligning Strategy with Execution
In any crisis, it’s critical that strategy and execution are tightly linked. The job is to bridge this gap. to work closely with both the Supervisory Board and the management team to ensure that strategic goals are aligned with operational realities. This means not only helping the board develop the right turnaround plan but also ensuring that it is implemented effectively and at the right pace.
2. Facilitating Difficult Conversations
Turnaround efforts often require difficult decisions—whether it’s downsizing, divesting assets, or renegotiating contracts with key stakeholders. We assist the Supervisory Board in navigating these tough discussions, offering both a strategic viewpoint and practical solutions for handling sensitive topics. The goal is to ensure that the board can lead confidently while maintaining the support of management, employees, and external stakeholders.
3. Guiding Stakeholder Communication
Clear and consistent communication is vital in any turnaround situation. The Special Advisor helps the Supervisory Board craft messages that resonate with internal and external stakeholders. Whether it’s communicating urgent changes to employees or reassuring investors and creditors, he ensures that the board’s communication strategy builds trust and credibility.
4. Ensuring Long-Term Stability
While immediate action is often necessary to stabilize a distressed company, it’s just as important to lay the foundation for long-term success. The Special Advisor helps the Supervisory Board think beyond short-term fixes, focusing on sustainable solutions that will position the company for growth once the immediate crisis is resolved. This forward-looking approach helps prevent the company from slipping back into trouble after the initial turnaround.
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The Value of Expertise in Speed and Effectiveness
In distressed companies, every day counts. Delay in making tough decisions or implementing critical changes can mean the difference between recovery and collapse. Our experience in turnaround management allows us to fast-track the Supervisory Board’s involvement, helping to accelerate the company’s return to stability. By guiding the board to act decisively and in alignment with the management team, we help reduce friction, shorten the recovery timeline, and increase the likelihood of success.
Conclusion: A Vital Role in Driving Successful Turnarounds
Introducing a Special Advisor to the Supervisory Board during a crisis can significantly enhance the board’s ability to steer the company through turbulent times. By providing strategic guidance, operational insights, and independent expertise, a Special Advisor helps the Supervisory Board make informed, swift decisions that drive the turnaround process forward.
Additionally, acting in a tandem role alongside the CRO, the Special Advisor can further support the company’s recovery efforts, ensuring that both the board’s strategic direction and the management’s operational actions are aligned for maximum effectiveness.
In today’s high-pressure business environment, where every minute counts, having an external expert dedicated to advising the Supervisory Board can make all the difference. It’s about speed, alignment, and ensuring that the board is equipped to lead the company back to stability and beyond.
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Feel free to write me at ruediger.tibbe@excelliance.de or call me at +49 160 4794480.
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Rüdiger TIBBE
Senior Partner & Managing Director
+49 160 4794480