From Crisis to prevention

In the last several years, Chief Restructuring Officers (CROs) are more in demand than ever before—and in a role that is rapidly being redefined. Once called in only at the point of crisis, today’s CRO must take an entrepreneurial approach to realignment, achieve consensus, and get the backing of all stakeholder groups. In other words, the modern CRO is no longer an agent of last-minute salvage operations, but effectively an interim CEO. We spoke to leading restructuring experts about this new role, and more than 50% see CROs being deployed even more widely in the future. With this figure in mind, we think it’s time to get to know the new CRO.

The new generation of CROs are a distinctive type of entrepreneur with a personality and skill profile that can reconcile the irreconcilable. They balance objectivity and analysis with empathy, are self-confident without being arrogant, risk-conscious yet unafraid, and dominant without ever being overbearing. The ‘C’ could now also easily stand for “communicating” or “convincing”, just as the “R” could now represent “rebuilding”, “rearranging”, or “retaining”. And as an officer, we are reminded that their task is centered on the healthy core of the organization and how it can regain its competitive edge.

CROs are also only ever deployed temporarily, making it critical to quickly formulate what all parties expect. Is their mandate to keep the worst case scenario from materializing? To jumpstart a faltering organization? Or to hand back the reins only after a full-fledged realignment? It is equally critical, however, to understand that even the best CRO can only save a company that still has a chance. We conclude our exclusive analysis of the new CRO by investigating what the role’s success looks like to different parties, from employees and the general public, to shareholders and financiers—and well as what skills CROs can hone to increase their effectiveness.