Restructuring in Germany: Study by Roland Berger Strategy Consultants

• Companies react to crises earlier, faster and with a more consistent approach
• Five trends: Better counter-action, closer cooperation with works councils, gaps in early warning systems, more restructuring needed, additional action to boost revenues

CEOs and top managers of German SMEs and large corporations found that more than one third of firms take counter-action at the first signs of a strategic crisis. This is 50 percent more firms than in 2001. Four other trends were also observed: The cooperation between management and the works council is becoming more important. There are still too few firms that consistently invest in early warning systems for crisis recognition. The majority of survey respondents expect to have to deal with restructuring again in the future. Revenue-boosting actions are becoming ever more common additions to restructuring projects. All 79 respondents to the written questionnaires sent out in the summer of 2003 have conducted a restructuring project in the past three years.