Seizing Opportunity in Crisis: How We Transformed Cyprus’ 2013 Crisis into Success

Seizing Opportunity in Crisis: How We Transformed Cyprus’ 2013 Crisis into Success

Introduction:

In the face of adversity, true leaders emerge, armed with resilience, expertise, and a relentless drive for success. At “JSL Advisors” we pride ourselves on our ability to navigate through challenging times and transform crises into opportunities. Today, we want to share the inspiring story of how we turned the 2013 financial crisis in Cyprus into a turning point for the company we were managing. Through strategic crisis management, innovative thinking, and unwavering determination, we were able to not only weather the storm but also thrive in its aftermath.

The Power of Experience:

At the helm of “JSL Advisors” are three exceptional individuals, each with an impressive track record in crisis management and a deep understanding of the complexities of the business landscape. Drawing from our extensive experience in managing companies across Greece, Cyprus, and Italy during the aftermath of the worst financial crisis since World War II, we bring a wealth of knowledge and expertise to every project we undertake.

Teamwork and Adaptability:

During the turbulent times following the Cyprus crisis, we knew that success hinged on our ability to work together as a cohesive unit. Through collaborative efforts, analytical thinking, and a keen eye for emerging opportunities, we swiftly mobilized all the resources to restructure the company under our management. We changed our sales strategies, adjusted our operations to meet new challenges, and positioned ourselves at the forefront of the recovery efforts.

Transforming Crisis into Opportunity:

Rather than succumbing to the pressures of the crisis, we saw it as an opportunity for healthy growth and reinvention. By embracing change and thinking outside the box, we were able to identify untapped potential within the market. Our forward-thinking approach enabled us to identify emerging trends, adapt our business models, and position the company for long-term success.

Case Study: Cyprus 2013 Crisis:

  • Analysis of the problem:

It was important, during this unprecedent crisis, to analyze the situation and identify the impact to the country’s economy in general and the impact in the Construction sector in particular. Also, a rough estimation of the duration of crisis was necessary in order to implement short term and long-term measures.

It was clear that recession would be stiff for the first 2 years and then, hopefully, a slow recovery would commence for the country’s economy.

The Banking sector that was the main root of the problem, would not be in position to assist by lending money to businesses, for the foreseeable future  

The Construction sector would suffer the impact for a longer period, unless the Government would take measures to assist, taking into consideration the importance of the sector in the Cypriot GDP.

  • Strategy to overcome the crisis:  

The Company should change sales policy, from New Sales that was based in the past when Construction Sector was booming, to After Sales that would maintain Company active. After Sales provide higher margins at lower prices and therefore is easier to increase sales and safeguard profitability of the Company

The Company should focus on collecting debts from Customers with intensive efforts, so that would be in position to maintain a positive cash flow, to overcome the liquidity shortage in the market.

The Company should provide a new vision to employees, in order to raise the moral and replace uncertainty with hope, that would have a positive impact in productivity and keep talented people in place.

  • Actions taken to achieve strategic goals:
  • From New Sales to After Sales:

Changing the focus of sales from New Products to After Sales, required a restructuring of the Company and a change in the mentality of employees.

Sales people followed intensive seminars to be informed on sales policies for After Sales products and services.

Technical teams were restructured to emphasize on providing high quality services with immediate response on service calls, so that Customers’ satisfaction would be kept in high levels.

Quality sector was organized to follow up on Customers’ satisfaction, so that recognition of a low-quality service provided would be recognized immediately and corrective actions would be taken, to ensure high level of Customers’ satisfaction.

Since the Company was part of a Cypriot Group of Companies, incentive was given to all Group’s employees for selling After Sales products and services aside their other activities, to any one they had professional or other relation.

Unfortunately, due to lower activities of the Company, some employees would have to leave. A careful selection was made, based on social criteria, aside the productivity rating and potential of each employee, so that moral impact would be reduced, since the situation was clearly explained to all employees.   

  • Collection of debts:

A dedicated employee was assigned with the task of collecting money owed to the Company

Top Management was also involved to contact customers with high debts and apply gentle but steady pressure.

Weekly meetings were conducted to follow up the collections and deciding for necessary actions.

A specialized legal office was contracted to assist on efforts, by taking legal actions against Customers that were delaying payments.

  • New Sales

Although activity in New Sales was very low, compared to the past, still there were requests for new buildings, especially in the tourism sector.

The competitors were very aggressive in pricing and therefore projects were requiring very delicate handling to avoid losing the project or been awarded with losses.

Therefore, it was decided to try promoting products with small variations from main stream competitors, adding value for the Customer without increasing final price, as an alternative to price war that has no winners.

The sales team along with Top Management worked hard and in depth for these projects to identify all potential factors that could be promoted to decision makers and positive results came on winning some projects with reasonable margins, that was considered a major achievement during this period of crisis.

  • Team Work

By speaking clearly to employees and sharing concerns and hope for the future, presenting all measures and actions taken to overcome the crisis, has kept moral high, compared to Competitors.

For all measures and actions, collective work was essential to achieve the goals. Therefore, meetings were multiplied for exchanging opinions and hearing everyone’s thoughts.

Seminars were organized to train employees to new duties.

Social gatherings were planned after work, to release tension and keep relations at high level

As a result, talented employees stayed in the Company and also 2 more were hired from Competitors, replacing people with low productivity and knowledge of the business

  • Conclusion:

Taking the above actions and measures, has kept the Company secured during turbulent times. After the crisis Company was ready to exploit recovery, as shown on below graphs:

The story of how we turned Cyprus’ 2013 crisis into an opportunity for the company we managed, is a testament to our unwavering commitment to excellence and our ability to thrive in challenging environments. At “JSL Advisors” crisis management is not just a buzzword; it is the cornerstone of our philosophy. We are passionate about helping businesses navigate through turbulent times and emerge stronger than ever. With our team’s combined expertise, innovative thinking, and proven track record, we stand ready to transform your challenges into success stories. Partner with us and let us embark on a journey of growth, resilience, and unparalleled achievement together.

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