The interim manager was hired by a foundry that produces turbine housings and other wind power components. The company had only recently been acquired as a carve-out from a larger foundry group. Since the takeover, it had been in a loss-making situation that threatened its existence. Negotiations between the management and works council on the cost reduction necessary to secure the company's future - including through personnel adjustments - had been stalled for months.
Concept for restructuring and integrated planning developed for 3 years
Distortions in the power plant manufacturing industry also led to a sharp decline in sales and further jeopardized the company's existence. The holding company had extensive contingent liabilities. The company also suffered from the fact that many administrative services were outsourced through service contracts. The agreed contractual conditions for the outsourced services further weakened the company.
The first priority was to develop a restructuring concept. The interim manager first determined the necessary financial resources for the supervisory board to finance the turnaround on the basis of integrated planning for the next three years. In the next step, he was able to reorganize the financing structure of the ailing company. In addition, he succeeded in unbundling the extensive contingent liabilities within the group.
Agreement reached with the works council on personnel adjustments
Thanks to his excellent communication skills across all hierarchical levels, the interim manager was able to restore trust at operational level in a very short time and conclude the outstanding agreements with the works council on personnel adjustments and further agreements on cost optimization at very short notice (within 3 months of the interim manager joining the company). Short-term savings were also achieved through targeted make-or-buy investigations into external procurement. A further contribution was made by capping the external procurement of administrative services and establishing an efficient, lean administration.
New foundry management and quality offensive initiated
Customer confidence in reliability had been severely damaged by the quality problems that had persisted since the company was founded. The interim manager initiated the replacement of the foundry management and other management roles. Together with the new management, he then organized a quality offensive in production. The positive results made a significant contribution to gradually regaining lost customer confidence. Further losses of market share were prevented and incoming orders rose again as a result. Product diversification and the establishment of new customer relationships compensated for previously lost market shares. Ultimately, the foundry was able to return to continuous capacity utilization.
Restructuring concept successfully implemented - turnover increases by 50 percent
As a result, the interim manager was very successful in implementing the restructuring concept. In the following year, turnover increased by 50 percent. The interim manager later supported the sale of the group. As part of the closing, the buyers decided to take over the foundry, which was still being restructured, and continued the restructuring process.
