Wychwood Partners

Consumer / Services • Demand Contraction & Structural Realignment

Stabilizing Performance During Rapid Demand Contraction

Representative growth-stage engagement involving structural cost redesign and liquidity protection during a sudden demand contraction.

Outcomes

The business had been built for growth. Then demand fell sharply.

When COVID hit, revenue contracted at speed. The cost base had been scaled for expansion, not resilience. Fixed commitments, layered management, and optimistic planning assumptions created immediate pressure on liquidity.

Forecast visibility was limited. Decisions had to be made under uncertainty, without waiting for clarity.

Incremental cuts would not have been enough. The model required reset, not adjustment.

What I Did

Cost Base Reset
Conducted a full cost review, separating core capabilities from non-essential spend. Executed organisational delayering, vendor renegotiation, and fixed-cost realignment to protect margin and cash flow.

Operating Model Simplification
Reduced complexity by consolidating business units, clarifying ownership, and reinstating measurable performance thresholds at unit level.

Liquidity Control & Scenario Planning
Installed weekly 13-week cash flow forecasting, downside scenario modelling, and defined liquidity trigger points to guide decision-making during volatility.

Margin & Productivity Guardrails
Introduced clear productivity and contribution thresholds requiring variance closure before incremental spend or rehiring.

Operating Mechanics

Execution centred on:

Stability was prioritised over expansion.

Outcomes

The cost base was materially reduced while preserving essential operating capacity and protecting core revenue-generating functions.

Liquidity runway was extended, restoring optionality and strategic control.

Within two quarters, performance stabilised under the revised model, creating a platform for disciplined recovery rather than reactive survival.

Pattern

Demand contraction does not test ambition. It tests control.

Effective stabilisation requires:

Resilience is built through clarity and control, not cost panic.

Relevant services

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