Many industrial companies are facing these challenges and should avoid these mistakes - Safely through the crisis
News from haustechnikdialog.de, March 17, 2025
German industry is facing enormous challenges: rising energy costs, increasing bureaucracy, a shortage of skilled workers, high social security contributions, a weak economy and declining globalization are putting pressure on companies.
Added to this are recessionary tendencies, advancing deindustrialization, and rapidly changing markets. The consequences are serious – declining production, endangered locations, and companies fighting for their survival. Those who fail to act now risk economic ruin. Yet many companies are exacerbating their situation through strategically wrong decisions.
A common mistake is procrastination. Instead of taking timely action, many companies hope for a quick recovery – and lose valuable time. The ongoing crisis is placing enormous strain on many management teams. In addition to managing their operational business, they must manage far-reaching changes, which puts an organizational strain on their ability to cope. Often, there is also a lack of a clear plan, sufficient management capacity, or the determination to consistently implement necessary changes. This article examines the mistakes that should be avoided now and the strategies companies can use to actively secure their future.
Obtain support in a timely manner and expand management capacities in a targeted manner
Many companies underestimate the importance of seeking external support early on. Acting quickly is crucial: The longer a company delays, the more expensive and protracted the path to recovery will be. A fitting metaphor illustrates this: Those who wait until the pain is unbearable to see a dentist can expect complex and unpleasant treatments.
Especially in crisis situations, it makes sense to temporarily strengthen your own management capacities – for example, through the targeted deployment of an interim manager. This support accelerates the implementation of urgently needed measures and ensures effective decision-making processes. Instead of conducting lengthy analyses, the focus here is on implementation. In acute phases, a brief assessment by an experienced manager is sufficient to initiate targeted control measures.
Practical tip:
Companies should consistently focus on economically viable products and services. Loss-making products must be eliminated from the portfolio. If certain customers rely on these products, a price adjustment can ensure profitability. In such cases, it is advisable to communicate the price increase promptly and transparently with the customer and to develop joint solutions – for example, through material provision by the customer or long-term purchase commitments, changes in ordering behavior, etc.
Establish crisis-proof leadership
In times of crisis, direct and intensive communication with employees and all relevant stakeholders is essential. Decision-making processes in crises differ from those in economically stable phases – they require determination, discipline, and a high degree of empathy. Companies should not underestimate how difficult it is to lead during a crisis situation. Not every manager is prepared for such scenarios or intuitively knows what measures are necessary.
In such situations, an experienced crisis manager at the company's side can make a decisive contribution to minimizing damage under intense time and budget pressure. At the same time, the company benefits long-term from their expertise, as executives gain valuable insights for future challenges. The use of a qualified interim manager always pays off: Through quick, targeted measures, problems can be contained much more quickly and economic damage limited more quickly.
Practical tip:
Setting the right priorities is crucial. For example, companies should focus on minimizing complaint rates and optimizing delivery reliability in order to retain customers and strengthen their position as a reliable partner. This is also a major advantage for sales. A detailed analysis of the entire supply chain is also worthwhile. Rather than focusing on pure – often detrimental – cost-cutting, strategic optimization is more effective. An approach that can often be implemented quickly is to discuss consignment stocks and medium- to long-term demand and call-off planning with suppliers. This allows inventory to be retained with the supplier, thereby reducing storage costs and shortening delivery times.
Rethink corporate goals and strategic direction
In economically challenging times, many companies lack clearly defined objectives. Expectations are often overly optimistic, while opportunities remain unexploited. Instead of focusing exclusively on internal optimizations, processes, and procedures, companies should increasingly consider changing customer needs and collaboration with suppliers. Those who focus solely on reducing costs and neglect strategic partners are making a serious mistake.
Practical tip:
First- and second-level managers should develop a clear vision that defines which products and services will ensure long-term company success. Key questions include: "Which products or services will enable us to achieve sustainable profitability?" "What strengths differentiate us from the competition?" "Which business areas will generate the necessary revenue in the coming years to finance innovations, employee development, and the use of new technologies such as AI?" Only with a well-thought-out strategy can companies be positioned for the future.
First the objectives, then the strategies
Before strategies are developed, the company's objective must be clearly defined. Only then should those responsible consider what resources are required. Important questions include: "What budget is available to achieve the set goals in one, three, or five years?" "Which internal or external specialists are required to meet the deadlines?" "Which external partners or supporters can help achieve the goal faster or more efficiently?" Since there is no single right strategy, but rather various paths are conceivable, the chosen approach must fit the company.
Strategic planning is followed by implementation planning. It is particularly important to involve experienced and committed employees in this process—especially those who are committed to the company and can be a driving force for change. Communication, transparency, and clarity play a crucial role here. A motivated workforce with a clear vision can move mountains.
Practical tip:
An iterative, retrospective approach is particularly helpful in strategic planning. The starting point is the desired goal, for example, for year five. Then, you think backward: "What needs to be achieved in year four to realistically achieve the five-year goal?" "What milestones are necessary in year three to ensure that year four is completed as planned?" If the course for years one and two has already been set correctly, this is a positive sign. If not, the plans should be adjusted iteratively to obtain a realistic overall picture.
To ensure this process runs smoothly, additional temporary resources are needed. An interim manager can provide valuable support to quickly and efficiently implement the right measures and put the company on a successful path.
