The first step in a critical situation, when declaration of insolvency is pending with respect to overdue liabilities, it is always to perform quick and drastic steps to reverse this situation. More details will be given on a personal meeting. Everything else is secondary in priority. However, after that is completed it is necessary to move forward in order of priority, step by step, to address the long-term strategy of the company. However, to do so at a time when the company is fighting for its very existence does not make sense.

Until this first step of managing this critical situation is handled, it is not possible to focus attention on other long-term solution to the situation. See the above “Crisis management, Restructuring and Consolidation” section.

Quotes and Comments

One cannot manage change. One can only be ahead of it.

Peter F. Drucker, American economist and philosopher Management