The family office of an international company in the luxury textiles industry engaged the interim manager in 2019 to restructure an ailing shared service center (SSC) in the UK. The owners planned to sell the company after the restructuring.
At the time the mandate began, the head office in Germany no longer had the problems in the UK SSC under control. The SSC was characterized by high fluctuation, inadequate cash management and insufficient reporting. The particular challenge was to solve the problems under great time pressure. The restructuring of the SSC was a necessary condition for the sale of the entire company.
Identified and remedied urgent cash management problems
After discussions with the management in Germany and the Head of Treasury in the UK, it quickly became clear that the company lacked a cash management tool. The interim manager also realized that the Head of Treasury was not up to the task. In close consultation with the management, the interim CFO replaced the Head of Treasury with another interim manager, who quickly brought cash management under control. In addition, the interim Head of Treasury was given the task of introducing a cash management tool. At the same time, an advertisement was issued for a permanent Head of Treasury. The position was successfully filled after four months.
Accounting and controlling: ERP and BI system analyzed and upgraded
After the interim manager had put cash management in order, he focused intensively on reporting. An in-depth analysis of the reporting system, ERP system (SAP/R3) and business intelligence (IBM COGNOS) revealed that the entire group reporting was based on outdated structures. After a brief consultation with the management in Germany, the interim manager engaged an external service provider to update the ERP system according to his specifications. Among other things, he adapted the cost centre structure to the current group organizational structure and cost accounting. In order to promote acceptance in controlling and accounting, he successfully involved the team in the planning and implementation from the outset. SAP training sessions, which the interim manager used to bring the finance and accounting teams up to date, also contributed to acceptance.
Processes for reporting, planning and forecasting redefined
In another sub-project, the interim manager defined the reporting, planning and forecasting processes. The particular challenge was that the external service provider for the ERP system was unable to cope with the high project speed and therefore a key milestone of the overall project was in danger of failing. The interim manager was able to avert the failure by repeatedly escalating open issues to the service provider's management. Following the modernization of the ERP system, the business intelligence tool COGNOS was updated together with IBM within four weeks, so that the entire group reporting system was up to date.
Transparent personnel structure significantly improves employee satisfaction
The personnel situation in the UK had suffered from management weaknesses and staff turnover - and there were no clear responsibilities. With an in-depth job analysis, the interim manager created the necessary transparency regarding areas of responsibility and working hours. The subsequent reorganization made a significant contribution to reducing staff turnover and significantly improving employee satisfaction.
SSC restructuring creates basis for successful sale to investor
After just seven months, the interim manager was able to hand over an efficient and functional shared service center to the new management. Cash management was under control and the head of treasury had been appointed for the long term. Staff turnover was reduced and the efficiency of the SSC increased. This fulfilled the requirements for selling the company to an investor after a short period of time.
