A global photovoltaic system supplier operated a central manufacturing and distribution chain and independent sales companies in 12 countries. Before the start of the interim mandate, there was no sales management based on key figures. Extremely high stock levels, caused by the broad product range and the competing sales channels of wholesalers, trade businesses and project business, had led the company into financial difficulties.
The interim manager's task was to develop a corporate unit as a staff unit for key performance indicator-based sales management. He also had to be responsible for its introduction and later hand it over to an internal manager ready for operation.
Developing key performance indicators
First, the interim manager presented the project to all areas of the company in all national subsidiaries and collected existing solutions. These were evaluated in terms of feasibility and prospects of success in various workshops with the individual division managers and specialists. This also applied to the results of previous management consultations.
Particularly promising specialists were recruited for the new business unit in order to have a starting configuration for the subsequent concept and implementation phases. Key performance indicators (KPIs) were developed iteratively. Under the leadership of the interim manager, the enterprise resource planning system (ERP system) was adapted and additional tools were developed to create transparency. Processes and workflows were changed throughout the company or - if necessary - newly introduced.
Acceptance for KPI-based sales management created
The internal lobbying work required considerable effort. But it was worth it. Thanks to his efforts, the interim manager was able to significantly increase the acceptance of the now KPI-based sales management system.
The interim manager first determined the training requirements for the members of the new team - and qualified the specialists accordingly. Methodological skills and successful communication were an elementary component of the extensive personnel development discussions. The interim manager worked with HR to recruit the manager for the new business unit. Finally, he handed over the successfully implemented business unit to the internal manager.
Inability to pay successfully averted
Facts: The average contribution margin has increased significantly. Capital tied up in inventories (€100 million range) was significantly reduced by taking suitable KPIs into account. As a result of the consolidation of management activities in a new operating unit, personnel requirements have fallen significantly, meaning that the resources freed up can be used elsewhere. The effort required to support the individual national sales companies has been significantly reduced, as forecasts can be prepared much more reliably.
People: The Executive Board and management were very satisfied because the impending insolvency could be averted thanks to the work of the interim manager. The colleagues in the new unit were also very satisfied because they are entrusted with responsible tasks and recognize the value of their work on a daily basis. Employees in the adjacent areas are positive because they recognize the added value of sales management thanks to the transparency created.
