In Conversation With Mark Kuperus on Restructuring: "IT Is Often the Cause of Financial Problems, Not the Consequence."
AdaptiQ: Mark, what role does IT play in restructuring, and does it get the attention it deserves?
Mark: Many management teams view IT only as supporting: how do we make processes more efficient, how do we cut costs? But what I regularly see is that IT is actually the cause of the restructuring. I see companies in serious trouble because poor IT leads to insufficient and/or incorrect management information, and with that, it literally threatens to sink the company.
Take information management: many companies don’t know their profitability per customer, which products generate the most money, and where cash is leaking away. They don’t manage cash. They don’t manage margins, only revenue. And then they make fundamentally wrong strategic decisions. They keep supplying an unprofitable customer because it’s the largest customer, while they’re actually losing a lot of money on it.
IT can be critical in two places. First, in primary processes: that’s where you gain real competitive advantages. Warehouse automation, production optimization, renewed control systems. That’s where you win or lose. But equally important: good information management. Your accounting must have the right structure, focused on products, customers, and assets. Not just focused on cost types. Only then can you extract meaningful management information from your system.
AdaptiQ: What are the most common IT-related pitfalls you see?
Mark: The first pitfall, as mentioned, is that people often only look at supporting processes. You focus on the efficiency of the finance department, better transaction processing, and faster reporting. But you miss where you really make money: in the primary processes. The second pitfall is that IT sits on an island. A CIO who isn’t at the table for strategic decisions, who doesn’t talk with the COO about primary processes, and who doesn’t work with the CFO on information structure. That never goes well. IT is not the responsibility of one person; it affects everything. And that’s actually where the core problem lies: IT transformation often happens without processes, people, and the organization growing along with it. That’s fatal. You can have the most beautiful system, but if you haven’t brought people and processes along, it doesn’t work.
AdaptiQ: How do you evaluate an IT environment as an interim? What do you look at first?
Mark: At heart, I’m a CFO/CRO. I’m not an IT expert. So I bring in someone I trust and who knows how to do this well. That’s important: you choose someone you know and trust, who you can work with, and with whom you can collaborate well. People’s business, I always say. What the specialist must do: inventory the complete IT landscape. Not only the supporting systems, but especially the degree of automation of the primary processes. And then, this is crucial: prioritize. You don’t say “everything has to happen now”. You say: “This first, then that. In three years it will look like this.” Not in IT jargon, but in a language everyone understands. What’s the target, and where do we want to stand in three years? What are the intermediate steps over the coming months and years to get there? This then becomes part of the restructuring plan.
AdaptiQ: How do you convince stakeholders of the necessary IT modernization? How do you set priorities?
Mark: That depends entirely on the type of stakeholder and the situation at that time. Professional investors see this immediately. They understand that you can’t restructure without getting IT in order. In family businesses, I often find this much more difficult. You have people who say, “We’ve always done it this way, why would we change?”
And context determines a lot too. Are you preparing for an exit? Then you focus on quick wins and cleanup. Are you in a crisis with only a few months of cash left? Then you prioritize stabilization by stopping the cash drain instead of transformation. Do you have an investor backing you? Then you can usually really invest in IT modernization. I tie my fate to it. Insight into IT is very important! If we don’t get good IT insight, I can’t make a good restructuring plan. Then I might have to do something else. That prevents a lot of discussion later.
AdaptiQ: What role does data play in decision-making and approach?
Mark: Data is crucial. Without good management information, you can’t make good decisions. You must know: what is the real margin on my products? What is the profitability of my customers? What do my factories cost? That’s the management information you use to manage the business. Whether you’re a logistics company with ten warehouses, a manufacturer with multiple plants, or offering SaaS services, you must know where the money is really made and what the actual costs are.
But here’s a crucial point: “garbage in, garbage out”. You can have the most modern system, but if you don’t register the right data, if your accounting isn’t detailed enough and is only based on cost types, if your processes aren’t good, you won’t extract the right management information from it. You can say: “Let’s build a data platform.” But if the basic registration is insufficient, that won’t help.
AdaptiQ: How do you prioritize IT against other restructuring objectives? How do you balance speed and risk?
Mark: There’s a dilemma here. The time needed for IT transformation is usually considerable. But restructuring is often under enormous time pressure. If you’re close to a sale, you might not make that big investment. You do a baseline assessment, you identify quick wins, and you show that you’re working on an improvement plan. That makes the company more attractive to a buyer. But you don’t spend millions.
But sometimes IT is so essential that you have to do it anyway. If your fulfillment system doesn’t work and you’re losing a lot of revenue because of it, then it has to be done. However, my core message is: never implement all at once. A big bang ERP implementation can completely destroy your company. I’ve seen how such a big bang implementation literally halved a company’s revenue. That costs you the deal.
Additionally, you adjust and refine your ambitions over time. Step by step. Monitor interim results. Make sure your processes grow along with you, that your people come along, that your organization adapts. You must move in balance from one stable level to another, like climbing Mount Everest, in stages.
AdaptiQ: Do you have an example where IT was deployed strategically and made a difference?
Mark: There are nice examples from my work. For example, a logistics company where we built fully automated warehouses: robotics replacing processes that were previously done with forklifts. But also a distributor where we modernized the fulfillment system: based on the principle “if primary processes don’t work, you lose the game.” What these examples have in common: IT was part of operational transformation, not a separate component. And crucially: we did it in phases. We never implemented everything at once. We looked: where can we win quickly? Where do we need to be careful and take our time?
AdaptiQ: What must you do in a restructuring and what can be delayed?
Mark: Timing determines everything. In phase one, you inventory the (IT) situation (baseline) to understand which (IT) issues contribute to the crisis. This is not optional. Hold off on big investments until you really understand what the problem is. In phase two, you’re analyzing, prioritizing, and creating the improvement plan. Here, you also identify any quick wins. You do those because they show that you’re on the road to recovery. But big transformations and investments? You might pause those for now, until you’re sure you’ve survived this crisis. Of course, this also depends on context. Are you heading towards an exit? Then you focus on cleaning up systems and data. Do you have only two months of cash in-house? Then, of course, you shouldn’t start large-scale IT implementations. In phase three, the implementation phase, you do it step by step, phased, and ensure good anchoring in the organization.
AdaptiQ: What would you advise a CIO experiencing restructuring for the first time?
Mark: A lot. Let’s describe it again per phase.
Phase 1 – Snapshot (baseline assessment): You must first understand the current situation. Where are the bottlenecks? Where is potential? What does failing IT contribute to the crisis? This insight gives you the baseline (the current state). And one more piece of advice: be open and approachable from the start. Don’t just share all success stories, but also what’s difficult or what the risks are and what isn’t going well (yet). That builds trust.
Phase 2 – Create recovery plan and provide perspective: Work out a (multi-year) improvement plan with clear intermediate steps. Not IT jargon, but language everyone understands. What’s the target (desired state)? Which quick wins can we achieve quickly? Create perspective. And make sure you have the right people in the organization to execute this. I always look for someone with standing in the organization, who has buy-in in the organization, and brings others along.
Phase 3 – Implementation & anchoring: This is where real transformation happens. This is where you need a lot of time. Implement in phases. The big warning: never a big bang. As mentioned, a big bang ERP implementation can destroy your company. Make sure your processes grow along with you, that your people come along, that your organization adapts, and the transformation is ultimately anchored in the organization.
And one more thing, for both CIOs and CFOs: you can’t sit on an island. You must collaborate. Real collaboration with the CEO/COO on primary processes, and collaboration between the CFO and CIO on the information structure and supporting processes.
AdaptiQ: What should CIOs do differently?
Mark: Some CIOs aren’t taken seriously enough. They’re not at the table for strategic decisions. They function as an island. My advice: claim your seat at the table. You’re not only responsible for IT, but you’re a partner in operational transformation. You have a comparable responsibility as the CFO or COO.
IT managers are often loners. They delegate too little. They do a lot themselves. That doesn’t work in a restructuring. You need people who can do your work, so you can think strategically. If you’re not taken seriously, you need to raise that. First, with your CEO, in a good conversation. Say: “I have a portfolio here, I’m functionally responsible, but this project affects everything, all processes. This is a shared management responsibility.”
If that doesn’t work, bring in HR or a trusted person. And if that still doesn’t work, you can ultimately inform the board of directors. Not to defend yourself, but to make clear that this project needs more than just you. Many CFOs/CROs, and I am one, always sit in the board meetings. CIOs usually don’t. That needs to change, especially when it comes to major (IT) transformations.
AdaptiQ: What’s your lesson from all this?
Mark: Simple: IT is not a supporting discipline. IT is strategic. And you can’t do it alone. You don’t reach the top of Mount Everest in one day, either. You do it in stages, with regular intermediate stops to acclimatize. IT transformation during restructuring is the same. Do it step by step. Take the organization with you. Work together with others serving the same goal. Build support and ensure sufficient anchoring in the organization. And make sure you always know where you are going strategically.
Mark Kuperus’ message is clear: IT is not a bottom-line item, but a strategic tool. For CIOs, this means: claim your seat at the table, work together with other executives, and transform in phases, not all at once. For interim managers and restructuring leaders: don’t ignore IT. It’s regularly where the real problem lies.
Facing similar challenges with IT strategy and restructuring? AdaptiQ works with tech leaders and interim managers through IT Due Diligence and Strategic Advisory to turn transformation ambitions into measurable results. Let’s Talk .