German industry faces enormous challenges: rising energy costs, growing bureaucracy, a shortage of skilled workers, high social security contributions, a weak economy, and slowing globalization are putting companies under pressure.
On top of this come recessionary trends, advancing deindustrialization, and rapidly shifting markets. The consequences are severe — falling production, sites at risk, and companies fighting for survival. Those who fail to act now risk going under economically. Yet many firms make their situation worse through strategic missteps.
A common mistake is prolonged hesitation. Instead of taking timely action, many companies hope for a swift improvement — and lose valuable time in the process. For many management teams, the ongoing crisis represents an enormous burden. Alongside day-to-day operations, they must also manage far-reaching change, which becomes an organizational ordeal. Often there is also a lack of a clear plan, sufficient management capacity, or the resolve to implement necessary changes consistently. This article looks at which mistakes should be avoided now, and which strategies companies can use to actively secure their future.
Seek Support Early and Build Up Management Capacity in a Targeted Way
Many companies underestimate how important it is to bring in external support early. Acting quickly is crucial here: the longer a company hesitates, the more expensive and drawn-out the road to recovery becomes. A fitting metaphor illustrates this well: anyone who only goes to the dentist once the pain becomes unbearable must expect lengthy and unpleasant treatment.
Especially in crisis situations, it makes sense to temporarily strengthen one's own management capacity — for example, through the targeted use of an interim manager. This support speeds up the implementation of urgently needed measures and ensures effective decision-making. Rather than carrying out lengthy analyses, the focus here is on execution. In acute phases, a brief assessment by an experienced leader is enough to initiate targeted corrective measures.
Practical tip:
Companies should focus consistently on economically viable products and services. Loss-making offerings need to be removed from the portfolio. If certain customers depend on these products, a price adjustment can help secure profitability. In such cases, it is advisable to communicate the price increase quickly and transparently to the customer and to work out joint solutions — for example, through customer-supplied materials, long-term purchase commitments, or changes to ordering behavior.
Building Crisis-Proof Leadership
In times of crisis, direct and intensive communication with the workforce and all relevant stakeholders is essential. Decision-making processes in a crisis differ from those in economically stable times — they require resolve, discipline, and a high degree of empathy. Companies should not underestimate how difficult it is to lead during a crisis. Not every leader is prepared for such scenarios or intuitively knows which measures are needed.
An experienced crisis manager at the side of the management team can make a decisive contribution in such situations, helping to minimize damage under high time and budget pressure. At the same time, the company benefits long-term from this expertise, as leaders gain valuable insights for future challenges. Bringing in a qualified interim manager always pays off: fast, targeted measures contain problems much more quickly and limit economic damage sooner.
Practical tip:
Setting the right priorities is crucial. Companies should, for example, focus specifically on minimizing complaint rates and improving on-time delivery, in order to retain customers and strengthen their position as a reliable partner — which is also a major advantage for sales. In addition, a detailed analysis of the entire supply chain is worthwhile. Rather than relying on pure — and often damaging — cost cutting, strategic optimization is more effective. One approach that can often be implemented quickly is discussing consignment stock and medium- to long-term demand and call-off planning with suppliers. This allows inventory to be held at the supplier, reducing storage costs and shortening delivery times.
Rethinking Corporate Goals and Strategic Direction
In economically challenging times, many companies lack a clearly defined set of goals. Expectations are often too optimistic, while opportunities go unused. Instead of focusing solely on internal optimization, processes, and workflows, companies should pay more attention to changing customer needs and collaboration with suppliers. Focusing exclusively on cutting costs while neglecting strategic partners is a serious mistake.
Practical tip:
First- and second-level leaders should develop a clear vision defining which products, services, and offerings will secure the company's success in the long run. Key questions here include: "With which products or services do we achieve sustainable profitability?", "What strengths set us apart from the competition?", "Which business areas will generate the earnings needed over the coming years to fund innovation, employee development, and the use of new technologies such as AI?" Only with a well-thought-out strategy can companies position themselves securely for the future.
Define the Goal First, Then the Strategy
Before strategies are developed, the company's goal must be clearly defined. Only then should those responsible examine which resources are needed. Important questions here include: "What budget is available to reach the stated goals in one, three, or five years?", "What internal or external specialists are required to meet the timeline?", "Which external partners or supporters can help reach the goal faster or more efficiently?" Since there is no single correct strategy, but rather several possible paths, the chosen direction 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 genuinely believe in the company and can be a driving force for change. Communication, transparency, and clarity play a decisive role here. A motivated workforce with a clear sense of direction can move mountains.
Practical tip:
An iterative, retrospective approach is especially helpful in strategic planning. Here, the starting point is the desired goal — for example, for year five. From there, you work backwards: "What needs to be achieved in year four to realistically reach the five-year goal?", "What milestones are needed in year three to shape year four as planned?" If the groundwork for years one and two is already right, that is a good sign — if not, plans should be adjusted iteratively to arrive at a realistic overall picture.
For this process to run smoothly, temporary additional resources are needed. An interim manager can provide valuable support in implementing the right measures quickly and efficiently, putting the company back on a successful course.