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.
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.
- 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
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.
- 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
"1stly, Interim Managers Transform"