Execution Case Study:   Turnaround Management

Challenge

• Recently acquired manufacturing business was losing money and in need of a turnaround and restructuring to return the business to profitability
• Products were produced at several facilities, sales were conducted thorough an expensive network, and overheads were high and not properly utilized

Outcome Achieved

• $2 million annual loss was turned into a $4 million annual profit, subsequently generating $6 million repeat annual profits
• Revenues of $36 million maintained

Engagement

• Profit Improvement Plan (PIP) with a detailed scorecard was developed, approved and executed
• PIP consisted of eight specific action plans in three distinct areas with monthly tracking of profit increases for each of the eight action plans
• Tracking included initial budgeted and forecast improvements, actual results achieved, and variances to budget on a monthly basis
• Action plans resulted in closing down an inefficient production facility, refocusing the R&D staff to profit generating programs, shifting to new inexpensive channels to market, and rationalizing the overhead structure

Why the Solution Enterprises Team?

• Principal took over business unit as acting Executive, returning it to the management team after improvements were institutionalized
• Problems were identified quickly
• Scorecard developed was transparent and improvements were easy to see and measure
• Sustained improvements were achieved
• Principal structured and implemented the engagement as well as executed the solution beyond completion of the original objectives