A medium-sized company (180 employees, EUR 25 million turnover) in the special plant construction and automation technology sector had miscalculated with larger projects. The financial situation was extremely tight and the company was on the verge of insolvency. The interim manager had already saved the company from insolvency seven years previously. As he therefore knew the company inside out, he was hired as a troubleshooter in the current crisis and later as interim CRO.
Developing a realistic restructuring concept within 4 weeks
At the start of the assignment, the interim manager was faced with an almost hopeless situation. He first determined the financial situation at short notice, including the cost structure and order situation. The shareholders did not want to invest any further capital in the company as they had already guaranteed a considerable amount of loans - the banks were pressing. After analyzing the financial situation, cost structure and order situation, the interim manager was able to convince the banks not to terminate the existing credit lines for the time being.
In intensive discussions with shareholders, managers and banks, he developed a comprehensive restructuring concept within 4 weeks, which was approved by the lenders. The interim manager was then hired as CRO. The target was to restructure the company within 12 months.
Providing quotes and sales professionalized with clear guidelines
First, the interim manager secured liquidity through very active receivables management and adherence to delivery deadlines. In order to improve the revenue situation in the long term, he professionalized the preparation of quotations and sales. He encouraged the sales department to design quotations in such a way that they contained only low risks for the company. Contrary to previous practice, only offers with very detailed requirements and service descriptions were prepared. Every change to the orders is now calculated, tracked and presented to the customer for approval before the company makes its first investment.
The interim manager turned the cost structure on its head. For sales, he defined clear sales targets including profit margins for fixed periods. The sales department was able to achieve the set sales target by activating the sales channels in Germany and abroad, providing extensive technical advice to customers, intensive internal support and submitting offers quickly.
Productivity significantly increased through standardization and needs-based planning
The CRO wanted to implement the restructuring without reducing staff if possible. Therefore, in addition to optimizing sales activities, he focused heavily on processes and production. Together with the respective specialist departments, he standardized parts and assemblies, for example, which increased productivity.
Improvements to CAD systems and the optimized use of the ERP system also made significant contributions to the productivity gains. Shortening procurement and throughput times and reducing purchasing costs and inventories were further building blocks in improving the efficiency of production.
Only a few employees left the company during the restructuring
The interim manager regularly informed the works council and the workforce about the progress of the restructuring. He credibly conveyed that he wanted to implement the restructuring without layoffs. He called on the workforce to continue to stand by the company and actively participate in the restructuring. This - and the trust in the interim manager - made a significant contribution to maintaining motivation. As a result, only a few employees left the company - on their own initiative - during the restructuring period.
Balanced financial result achieved after 9 months as interim CRO
A balanced financial result was achieved after 9 months (end of the financial year). After 12 months, the company was fully utilized with orders for another 15 months. The orders were calculated in such a way that a profit could be achieved. No employees were made redundant. After 18 months, the interim CRO's work was successfully completed.
