iManagementBrazil in Transformation

Retroperspective

After 17 years, the time seems ripe to redefine who iManagementBrazil wants to be. We don't just preach transformation, we do it ourselves when the time is right. After 17 years and just over 120 projects focusing on reorganization, restructuring and the transformation of business models. 

It all started with interim management, which is familiar from Europe. It started immediately with two projects: a German mechanical engineering company in Brazil and a large European trade fair organizer.

One had achieved undisputed market leadership in Brazil after several decades of very successful business. However, the massive technological change towards digital and electronically controlled machines took its toll on the Brazilian organization: it was not possible to keep the development area state-of-the-art and thus the basis for continuing national production was lost. The organization first had to be reorganized and then completely transformed into an extremely customer-oriented service, design and engineering company.

The second client had completed an acquisition of a national trade show supplier in Brazil. However, due diligence had been carried out quite thinly and no post-merger project had been set up. The hut was in flames. 

Then, in the middle of the financial crisis, in 2008, came the first M&A project. A European family-owned pharmaceutical company was buying in Brazil. We were on board from day One of the due diligence to design a possible post-merger plan, which we fully implemented in phase 2.

The boom time.

The year 2012 was again a milestone. It was the boom of the oil and gas industry in Brazil. The boom of strategic investors entering the national market was incredible. At that time, the Brazilian government made global road trips to talk to strategic and institutional investors. But it was not about attracting investors to Brazil. No. It was about asking investors to slow down. The country didn't have enough capacity to absorb such a wave of investment. That was not long ago - just a decade ... . 

At that time, we were almost 100% occupied only with projects in the oil and gas sector. It was mainly European, but also North American strategic investors. Our client, a large multinational company in the field of infrastructure for the energy sector from the German-speaking region of Europe, had made a brilliant acquisition in Brazil. But again, a case with fatally thin due diligence: balance sheets, labor law, employment contracts, tax liabilities. Nothing more.

After the deal was signed and sealed, a short period of shame passed until reality washed to the surface. We were appointed to the project to examine the possibilities of a reorganization and to develop scenarios. After a relatively short time, it became clear that a reorganization was not going to save the Brazilian company. It was a case for restructuring. However, the situation was so tense that an in-court recovery act had to be initiated. Working alongside two law firms, we drew up the plans and implemented the measures. The measures also included spin-offs and carving outs of parts of the company.       

In the following years, the number of reorganizations and restructurings increased constantly. Sectors such as suppliers to the automotive industry, as well as commodity industry became increasingly important. Also service providers in the B2B area became an important pillar of the project business.

The year 2016 - something new appears on the horizon.

Firstly, we had a client who supplied plant components and maintenance for the oil and gas industry. As a result of the crisis in the sector, a reorganization was necessary. For the first time, the primary way out of the crisis was not rough cost cutting, but automation technology and digitalization of business processes.

The second emblematic project was with a Brazilian startup for B2B services for industry. Here, too, the focus was digitalization and, above all, the testing of so-called low-fi models.

These two projects can also be described as the start of the design thinking phase for us.

Year 2020. Pandemic.

The outbreak of the pandemic represents a caesura for iManagementBrazil. All projects came to a halt within a very short time. Some customers immediately went underground and did not even want to pay the last invoice due. This behavior exceeded anything we had already seen with the outbreak of the financial crisis.  

For us, the question arose as to how we wanted to continue. Those who knew us from previous projects know that we always had a small database of professionals for various project missions. This database always varied between 85 and a maximum of 130 professionals. This is not to be compared with the European interim management providers, who store up to several thousand profiles. What the value of such a database should be in this day and age of open digital ecosystems, such as UnitedInterim, remains a mystery to me. 

But that is exactly what we never wanted to be! We never wanted to be an interim management provider. Our core business is the project, not database management. After all, we were never a personnel service provider. And that should now have consequences. To understand the issue we analyzed all projects from day one. 

Result.

In the projects where we were active with at least two professionals, we found that we always put people together from a pool of a maximum of 15 interim or project managers known to us. These are the professionals who can really work through thick and thin in a project-oriented manner. 

For example, after the financial crisis we already had the experience with some former expats of multinational companies as interim managers for iManagementBrazil. In almost all cases these professionals were not really able to manage a project on their own without their usual back offices. Also, there were many in this group who acted with a major conflict of interest in the client project. They created situations in which they positioned themselves as indispensable to the customer. Basically, these professionals were always looking for a permanent position. And thus not useful for a project-oriented business model like iManagementBrazil.

Consistency.

Thus, over the course of 2020/21, we clearly state that we as iManagementBrazil are committed to a purely partner-based model for the future. Partners can only be the founding partners as well as associated partners. And there should be deliberately few professionals. 

The group crystallized quickly. As the pandemic progressed, some decided to definitely retire, open a hotel on the beach or the mountains, or invest in AirBnB properties, some had definitely left Brazil. And in one case, our good friend had become an early victim of the Covid-19 pandemic. So today, including the founding partners, we are eight professionals. 

Year 2021. Still pandemic.

The project situation begins to redefine itself - it becomes more diversified. We do not acquire new clients, but existing and former clients have numerous problems to solve. The project characteristics range from classic interim and project management to pure consulting projects. They are partly physically on site, but always with a fair amount of hybrid work. We develop a way of working that is well adapted to the situation. We get to know the tools extremely well. The customer structure expands far beyond Brazil, which massively fuels the digital-hybrid way of working. 

It becomes clearer than ever that our service line is not an additional manpower, but in all cases the crucial tactical and/or strategic resource for our clients in a particular situation.  

The new reality.

Our customer structure is clearly more international. In the founding period until the financial crisis, our clients came almost entirely from the German-speaking region of Europe. In the following years until about 2016, they were predominantly Brazilian clients. Since 2016, the share of North American and European clients has been increasing rapidly. The locations of project missions have also become massively international. For example, missions now range from Brazil, to neighboring Latin American countries, to North America. 

We want to further expand this new reality. To reflect this, we are also changing our web domain. Away from the pure Brazil focus "imanagementbrazil.com.br", towards "imb.solutions". 

In this context, of course, Solutions also means that we can offer our clients highly customized project contract forms. Be it more interim or consulting oriented, be it a project mission in one of your subsidiaries in another country, with full on-site deployment or partially hybrid. We have the experience and the necessary know-how to successfully lead such project missions. 

And of course, we will be active in the projects exclusively on a partner-association basis. This ensures that you receive the highest possible quality standard that we can promise. 

What remains? 

Those who know us from projects know that we are always keen on turning your data into information. This philosophy is part of the DNA of iManagementBrazil. One of our strengths was and remains the so-called Data Design. Here, your data from the project is prepared in such a way that it sustainably and visibly brings out what is truly essential. Only in this way can the necessary decisions be made with a high degree of confidence. 

In this sense, we would be pleased if you appreciate our valuable service and if we can actively help you in a special situation.