Operational turnaround of a family-owned industrial SME
In twelve months, a manager specializing in the operational turnaround of industrial units brought “field” performance (cost and quality) to target levels, thereby revitalizing an organization that had been discouraged by persistent failure.
Context & Objectives
- Family-owned industrial company facing rapidly deteriorating market conditions (slow decline in volume, competitive pressure on prices, concentration of suppliers and customers);
- Heavy investment in new production equipment to radically improve operational efficiency and therefore cost levels;
- Despite extensive work on change management, persistent failure to meet productivity targets (machines operating at 55% of nominal capacity), jeopardizing customer service and financial stability.
Mission
- Rapid operational and human resources assessment and technical audit to identify the root causes of the malfunctions, prioritize them, and develop an action plan (roadmap/schedule and project governance) to remedy them;
- Structure actions, improve methods, and energize teams around this common project (change management);
- Continuously ensure the improvement of industrial performance and involve the teams and the executive committee in this monitoring, in particular through daily rituals;
- At the end of the mission, recommend the necessary changes and “hand over the reins” while ensuring that the improvements achieved are sustained.
Results
In twelve months, a manager specializing in the operational turnaround of industrial units brought “field” performance (cost and quality) to target levels, thereby revitalizing an organization that had been discouraged by persistent failure.
He implemented a new organization that ensured the sustainability of operations and, therefore, results. This new organization aimed to align the various elements of the supply chain as a whole, formalizing “acceptable” specifications for the sales teams to ensure good service and a satisfactory level of profitability per deal.
At the end of the transition assignment, the company offered him a permanent position as Chief Executive Officer.