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Purpose in reorientation:
Strategy consulting for a Start-up 

Strategic reorientation and harsh cuts Consulting case of a start-up in the context of Neuwaldegg’s strategy consulting.

Repositioning and consilidation

After years of rapid growth and dynamic deve­lo­p­ment of web-based trading plat­forms, a start-up is forced to refocus and stra­te­gi­cally repo­si­tion itself. The rapid growth into various national markets requires too much invest­ment and the share­hol­ders are ther­e­fore deman­ding the stream­li­ning of the port­folio and conso­li­da­tion of the orga­ni­sa­tion and busi­ness areas. With a heavy heart, the parti­ally new manage­ment team decides to make harsh cuts and adjust their course: with­drawal from markets, refo­cu­sing acti­vi­ties and growth plans as well as staff cuts, most of whom were only hired in recent months.

Maintaining drive and providing orientation

After imple­men­ting the conso­li­da­tion and down­si­zing measures, the inten­tion is to prevent lasting damage to the spirit and energy with which the orga­ni­sa­tion and employees develop. The drive is to be main­tained, because there is still a new world to shape and conquer, even if the focus is narrower and the size of the steps and goals less ambi­tious. At the same time, it is important to provide orien­ta­tion and long-term direc­tion within the orga­ni­sa­tion and manage­ment team: What are we working for? What drives us? What do we bring into the world?

Reteaming und purpose re‑quest

Once the conso­li­da­tion and down­si­zing measures have been imple­mented, we spend two days with the parti­ally reformed manage­ment team working on the current situa­tion and a longer-term perspec­tive. In the first part of the work­shop though, we have to create the basis to make this possible first: the hurt and tensions that arose during the crisis-laden uphe­aval and down­si­zing phase are still massi­vely affec­ting the manage­ment team. Reteaming is required. We provide space for reflec­tion and to digest the process and events of the last few months. Situa­tions and beha­viour that have damaged mutual trust are addressed. In a retro­s­pec­tive, we examine the highs and lows of the recent past and provide an oppor­tu­nity to express hurt, offence and disap­point­ments. Things get emotional and contro­ver­sial in a clear the air session. But with time, mutual under­stan­ding and compas­sion also deve­lops. The space for new soli­da­rity and trust expands. On this basis, we develop a common vision of the company in tran­si­tion in the next session: What is part of the old iden­tity? What should we let go – put into the museum or finally throw into the bin? What should be trans­ferred to the new iden­tity and put on display? And what has to be newly created or more strongly deve­loped in it? This shared vision creates new energy and forms the basis for the manage­ment team’s further work on the second day of the work­shop. Using the hedgehog model, it deve­lops the initial orien­ta­tion in detail: this is where passion, exper­tise and economic oppor­tu­ni­ties come toge­ther. With this new basis, what seemed to be a long way off the day before is all of a sudden achieved: the team distils the company’s WHY, HOW and WHAT in several steps. A purpose that creates orien­ta­tion and gene­rates drive for the company’s next deve­lo­p­ment phase. And clear guide­lines for the organisation’s stra­tegic and orga­ni­sa­tional deve­lo­p­ment. Ever­yone can feel it: their spirit is back!

With new purpose and drive out of the valley of tears

Turn­around manage­ment and purpose work – how do they go toge­ther? Working with this young and well-known growth company has shown us that the need for purpose and drive often increases signi­fi­cantly during crises. Once the most diffi­cult restruc­tu­ring measures have been imple­mented, it is neces­sary and helpful for manage­ment teams and subse­quently the rest of the orga­ni­sa­tion to pause and take time for a pit stop: to work through the expe­ri­ences and emotional uphe­aval in the recent past. To create or streng­then a shared vision of the tran­si­tion from the old to the new. And to provide drive and orien­ta­tion again with the help of a purpose quest.

Michael Moeller

arrow_back Purpose & Strategy

Bera­ter­gruppe Neuwaldegg
Gesell­schaft für Unter­neh­mens­be­ra­tung und Orga­ni­sa­ti­ons­ent­wick­lung GmbH

Gregor-Mendel-Straße 35, 1190 Vienna, Austria
T +43/1/368 80 70, office@neuwaldegg.at, www.neuwaldegg.at
Firmen­buch-Nr. 69063 p, Handels­ge­richt Wien

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