The commissioning company was a medium-sized mail order company. It had lost considerable profitability over three years with constant turnover. The interim manager was appointed by the board of directors and joined the company as Chief Restructuring Officer (CRO) as a temporary member of management.
Turnaround strategy developed and implemented with several approaches
The brief was to develop a turnaround strategy to significantly increase profitability. The interim manager was also tasked with implementing initial measures. Great emphasis was also placed on winning over and motivating the company's managers for the realignment. The board of directors was informed and consulted weekly about the progress of the project.
In order to significantly increase profitability, the interim manager pursued several approaches:
- Reorientation of the procurement strategy
- Harmonization of the sales strategy across all sales channels (catalog, online and stores)
- Cost savings and revenue maximization through increased focus on the 40 percent best customers.
Introduction of 2 own brands improves market position
In addition, the interim manager initiated the development of 2 company-owned brands for the most profitable product range in order to reduce interchangeability from the consumer's perspective and thus improve the market position. Employee redundancies were thus avoided.
Reorientation promoted by improving internal communication
The interim manager found allies for the strategic realignment by improving internal communication, among other things. Weekly meetings, trust-based coaching of current managers and the recruitment of new managers made a significant contribution to gaining acceptance for the realignment. This was reinforced by clear target agreements with managers. From now on, their bonuses are linked to the achievement of personal targets as well as the achievement of company targets.
After 6 months, the interim manager was able to hand over the project to the new CEO, who is successfully driving the company's realignment forward.
