A company for the production of seals for use in pneumatics (industrial and automotive) was experiencing a negative trend in results despite stable production conditions over an extended period. The interim manager was commissioned to analyze the situation and set up a restructuring program. The task was to streamline the business processes in a meaningful way and to enable the company to play a more active role in market development. The express aim was not to achieve short-term improvements in returns at the expense of strategic success factors by cutting staff.
Portfolio analyses and master plan developed
After taking stock of the situation, the interim manager worked with teams from the company to develop several portfolio analyses. At the same time, existing complaints were processed. The interim manager drew up a "restructuring" master plan, including the prioritization of all activities. In addition, the existing standard costs were reviewed and subsequently updated. The master plan was agreed with the works council. The interim manager also initialized target agreements for the business unit's management team, which had not previously existed.
Significantly higher prices enforced with customers
The portfolio analyses revealed that the prices for individual products - especially for major customers - had not been adjusted for years. In some cases, they barely covered the material costs, which had risen considerably in the meantime. The interim manager then conducted escalation negotiations with these major customers and was able to achieve significant price improvements.
Task force formed for article restructuring
A task force was formed for article groups that were particularly prone to complaints. The newly established "Business Development" working group focused on the development of innovative sealing concepts. A detailed procedure was developed for the technical and economic "article refurbishment". From this, the interim manager derived a guideline for article calculations.
Planning methodology and communication culture improved
Under the leadership of the interim manager, the teams also developed a new planning methodology. With the new approach, upcoming strategic planning can be optimally linked with the subsequent operational planning. At the same time, the interim manager developed a restructuring reporting system that is used as a "common thread" in monthly business reviews.
The success of the project was helped by the fact that the interim manager fostered a culture of open communication with everyone involved. This applied in particular to the works council, which he informed in detail at least once a month - and not just about HR-related projects.
Business results exceed target
During the first 6 months of the project, there was no trend reversal in the results. The client should be expressly thanked for taking this start-up inhibition into account in refurbishment projects. In the second 6 months after the start of the project, the results improved significantly. At the end of the year as a whole (= calendar year), the company had generated a result that was significantly higher than the planned result. In figures: Sales improved from € 16 million to € 18 million, while the result rose from minus € 2 million to plus € 1.5 million.
