Interim MD turns around engineering company in less than a year
A mechanical engineering company in Austria, with an annual turnover of €47m, was facing spiralling product costs, mounting quality problems and a breakdown in team communication, linked to increased machine complexity and operational errors. When the company unexpectedly lost its Managing Director, it turned to IXPA partner Bühler Management for help.
Bühler quickly proposed René, a multi-award-winning interim manager with expertise in performance improvement, restructuring, repositioning and crisis management.
As interim MD, René immediately developed a restructuring plan and launched a process-optimisation programme to eliminate errors. He installed interdisciplinary task forces and a ‘war room’ to deal with historic quality problems, improve current processes and demonstrate results to customers.
He also led the redesign of the order fulfilment process, the implementation of sales department training and the creation of a vastly improved service structure, with a more efficient, digitised after-sales process.
During the almost-11 months René was in post, he also streamlined the company’s product diversity to focus sales on core markets, and introduced a greater level of responsibility for product management in the engineering and sales functions.
René has transformed the company, reducing costs and capital commitment, streamlining personnel and turning around a negative EBIT. By changing the product mix and pricing structure, the firm has greatly improved its gross margin, leading to a 20% increase in productivity and a 5%-plus drop in the cost of material.
Most importantly, he has overseen a cultural change, instilling more urgency and a united, team-based approach to customer service and problem-solving. The company’s dealerships have renewed confidence, reflected in a strong uptake in orders.
The Client Says:
“The investment in an interim manager has paid off in every respect. Within just a few months, René has got our company back on track for a sustainable future. Thank you to René and to Bühler.”
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