Strategy is both a pretty-sounding and overworked expression, however, lack of it can hinder the success of the company. The essence of strategy can be simplified into some key questions: Where are we now?; Where do we want to arrive?; How do we get there?.
„There is no favorable wind for the sailor who doesn’t know where to go.” (Seneca)
Even if we believe that we have exact, data-driven, coherent and feasible answers for these questions, it is worth review them by external, objective eyes. A strategy review can point out areas, where the company does not have the latest or the appropriate answers and these can significantly influence future profitability. A strategy includes deep market analysis from identification of unique attributes of competitors to the critical assessment of capabilities of our own company. Based on them, we can define short-, mid- and long-term objectives, to which the company’s business model and actions of various areas can be customized. The implementation of all these elements can ensure desired success.
Our expertise in strategy development includes the following main areas:
- Strategy review
- Market, industry and competitive analyses (current market position and opportunity assessment)
- Corporate and division strategy development (concept development, implementation plan preparation, implementation support and change management)
- Business model options preparation
Operational efficiency improvement
The efficient operation of a company is the daily duty of the management. As time passes by, however, even from internal motivation or due to external impacts, some questions come up in managers’ mind during the existence of every company: Are we surely operating efficiently?; Do we really have to administrate so much?; Are we doing everything to focus on value-added activities?
„There is nothing so useless as doing efficiently that which should not be done at all.” (Peter F. Drucker)
When we turn to our employees, we can receive several development ideas, but due to their positions, they will not be able to assess the real potential from an external, objective point of view. Actually, compared to what: Does controlling work well?; Are our numbers accurate?; Do we understand our current costs correctly? Firstly, we have to get answers for these questions. After that comes the analysis of activities and used resources, followed by the review of organizational and operational structure. Further development opportunities lie in the area of performance measurement and incentives, meaning that an efficient operation is not enough by far if colleagues do not share the interest in continuous profitability improvement. In unfavorable market conditions even the functionality of the company can be at risk. In this case, a complex restructuring helps where solutions for all of the above mentioned have to found even in the short run, while maintaining liquidity as an ultimate priority.
Our expertise in operational efficiency improvement includes the following main areas:
- Cost-efficiency (creation of cost transparency, identification of personnel and cost optimization potential and preparation of related measures, implementation support of measures)
- Organization development (review of organizational and operational model, preparation of new concept; governance and controlling development; performance management – development of performance measurement and incentives)
- Restructuring (financial stabilization and strategic-operational repositioning)
Post-merger integration (PMI)
The process of an acquisition does not end with the sign-off of the contract. Previously identified synergies have to be realized by the appropriate integration of the merged company, otherwise one of the most important financial objective of the transaction can fail.
“The whole is greater than the sum of its parts.” (Aristotle)
An integration if a months-long, complex and intense process, where you both have to keep values of the companies needed for long term and implement those changes which enable to realize synergies. During all of that, continuous operation of the companies has to be maintained. Managing a company and besides that dealing with the integration in the required amount is a huge challenge. For this task, companies generally use consulting support.
Advisors of Citadel Consulting perform operational tasks during the integration period using deep financial and change management knowledge, as well as proven project management tools. As part of this, they work out among others the organizational structure of the integrated company and standardize operational processes. Moreover, they identify, harmonize and supervise simultaneous tasks in many areas along a detailed integration plan, and also calculate and transparently monitor the realization of synergy measures. Due to that, management of the company has to focus only on high-level leadership and necessary decision-making.
Our expertises in post-merger integration includes the following main areas:
- Consolidated strategic and financial planning (including detailed identification of synergies)
- Development of a new corporate or divisional operational model (in line with shareholders’ expectations and objectives)
- Development of a new organizational structure
- Standardization of operational processes
- Preparation of integration master plan
- Integration project management support