The interim manager was called in by an investor as interim CRO and interim CFO for the subsidiary of a small group of companies. It was a small company for the creation of control systems for breweries and dairies. The company had 28 employees and an annual turnover of EUR 4 million. The investor intended to develop the company to a target enterprise value for sale in order to concentrate the company portfolio more strongly. At the start of the interim CRO's work, the enterprise value tended to be zero. The company was poorly positioned internally and also had to fend off new competition.
Employees had left the company and founded competitors
The restructuring of the control system manufacturer was made more difficult because all but one person in the software development department had left the company. The reason for the dismissals were internal power struggles and personal rivalries among project managers, developers and the management. However, the company was not only left without developers. The employees who had left had also opened their own company as a competitor in the immediate vicinity.
This became dramatic because the company was already in crisis. There was also a particular need for action because the investment was financed by a bank. In addition, there was an enormous (and initially tangible) risk that orders could be transferred to the new company with the old, departing employees.
Structural deficits in the internal organization identified and remedied
The difficult starting conditions were further complicated by extensive structural deficiencies at the control system manufacturer. As the interim manager quickly analyzed, there was hardly any commercial expertise in a weak management team. The lack of uniqueness and focus in the business model resulted in a high level of customer dependency. In addition, the company was not making sufficient use of the existing project management software. Ultimately, the team also had to be retained and rebuilt in terms of expertise and motivation.
Core competencies developed and key functions established
In the position of managing director, the interim manager first of all created clear responsibilities. He worked out the unique selling points (USP) with the team and focused the company strictly on its core competencies. Within the team itself, he rebuilt the key functions. For example, he deployed the previous managing director - in line with his incredible talent - primarily in sales.
The reorganization also included bringing new employees back into the team and the once outsourced accounting department. Internally, the interim manager focused on creating new stability through a new corporate culture.
Monthly reporting and annual financial statements created - quotation processes renewed
In addition to his restructuring tasks, the interim manager also completed the monthly reporting and annual financial statements. He also introduced new quotation processes and streamlined the organizational structure - which was still redundant in key areas - to make it fit for the future.
Under the professional guidance of the interim manager, the project software was also further expanded and developed into an efficient tool for corporate management. The company now has its own functioning accounting system, which enables the controlling department to make valid statements. The interim manager brought about a considerable reduction in costs by reducing or redeploying positions that were no longer required in internal sales, project assistance and internal IT.
Restructuring quickly leads to high company value
The changes initiated by the interim manager quickly had a positive impact. The increased sales activities with a new mindset gradually increased the order backlog. The projects were handled more efficiently thanks to the new processes.
The company value rose from 0 to several million. Ultimately, the company was sold at a profit 1.5 years after the interim manager was appointed. The success has been stabilized at a high level to this day. The original managing director was rebuilt by the interim manager as a sales personality. The commercial functions were transferred to another, newly hired employee.
