---
title: Interim Management case study - Restructure
description: The organization embarked on an interim management restructure program to address challenges in delivery, quality, and adaptability
image: https://leaders.1stexecutive.com.au/hubfs/Untitled%20design%20(3).jpg
---

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# 12 Jul Interim Management case study - Restructure

Posted at 01:35  in [Capability](https://leaders.1stexecutive.com.au/blog/tag/capability), [Business Focus](https://leaders.1stexecutive.com.au/blog/tag/business-focus), [Change Success](https://leaders.1stexecutive.com.au/blog/tag/change-success), [Change Management](https://leaders.1stexecutive.com.au/blog/tag/change-management), [Case Study](https://leaders.1stexecutive.com.au/blog/tag/case-study)  by [Andrew Thoseby](https://leaders.1stexecutive.com.au/blog/author/andrew-thoseby)

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## INTRODUCTION

A mechanical engineering company with a 47 million Euro turnover and almost 200 employees faced a pivotal juncture with the departure of its Managing Director. Over a span of 10.5 months, the organization embarked on a strategic restructuring program to address challenges in delivery, quality, operational efficiency, and adaptability within an evolving industry.

 

## COMPANY SCENARIO

### **Mission/Objective:**

- Leadership Transition: Swift replacement of the departing Managing Director.
- Restructuring: Reduce costs and capital commitment, streamline personnel structure.
- Process Enhancement: Re-engineer production and sales processes.

### Immediate Measures:

- Transparency: Revealed financial status and developed a restructuring plan.
- Optimization: Launched a program for purchasing optimization and error elimination.
- Task Forces: Formed interdisciplinary teams and a war room to address quality issues.

 

## BUSINESS CHALlENGE

### Causes of Problems

The company’s one-sided technology focus led to  
complexity, faulty documentation, and a decline in quality  
awareness. The design department struggled to collaborate  
effectively.

 

## SOLUTION

- Quality Offensive: Improved delivery quality and service.
- Learning Feedback: Anchored information feedback from after-sales events.
- Process Redesign: Created productive interfaces, streamlined order fulfilment.
- Training: Enhanced sales department understanding of customer applications.
- Digitalization: Initiated improved service structure and laid the foundation for after-sales digitization

 

## OUTCOMES

### Challenges

These global leaders in mechanical engineering faced a crisis as machine delivery quality declined and influenced deteriorating sales disciplines and strained dealer relationships. The unexpected departure of the Managing Director worsened the situation amid a looming post-COVID orders slump.

 

## RESULTS

- Cost Structure: Achieved sustainable 20% productivity increase.
- Material Prices: Reduced by more than 5%, reorganized gross margin through adjusted pricing.
- Cultural Shift: Initiated a high performance organization mindset.
- Order Intake: Restored dealer confidence, leading to a strong increase in orders.
- Financial Turnaround: Converted negative EBIT into positive

 

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