A group with a turnover of six billion euros had taken over a medium-sized company in Germany with around 120 employees and a turnover of 25 million euros and largely continued to operate as a standalone company. There was no integration. The site underwent several restructuring measures to reduce costs. No investments were made in the site or its products. The company burdened the group with losses for years. The interim manager (employed as a division manager in the group and on the company's management board) was tasked with integrating the acquired company into the group and ensuring a positive business result.
New organization developed and transferred to the group structures
In close cooperation with Controlling, Supply Chain Management and HR, the current interim manager developed the steps to fully integrate the company into the group. The scenario revealed potential savings of several million euros with improved performance.
The steps focused primarily on the following areas:
- Reorganization of sales into a European sales organization
- Splitting the company into a sales and service company and a manufacturing company
- Relocation of manufacturing to a multidivisional production site with subsequent closure of the production company
- Conversion of the engineering software to the Group standard
- Introduction of SAP in accordance with the Group standard
Transparent communication wins over key people for the project
In the next step, the measures were presented to and discussed with the management teams at both sites. The open and transparent communication made it possible to win over the key people for the project and secure their support. Together, the future organization was developed and structures defined. The interim manager then informed the works council and negotiated a reconciliation of interests and a social plan.
Integration successfully completed after twelve months
After twelve months, the interim manager was able to successfully complete the integration. The site is now making a positive contribution to the Group result.
An overview of the key results:
- The sales department in Europe has been transferred to an organization headed by a new sales manager (external appointment) and set up on a regional basis. It sells all products from a single source.
- The sales and service company has been established and the transfer of operations has been completed. All key employees were retained and the new structures have been implemented.
- The interim manager was able to conclude and implement the reconciliation of interests and social plan within the budgeted costs. The employees were transferred 100% to a transfer company. The production operations were closed on the planned date.
- The conversion of the engineering software and the introduction of SAP, including training for all relevant employees, were completed on time and the go-live went according to plan.
