Case study: Business turn-around
Overview: $30m building products manufacturer. Founder conflict was creating strategic blind spots. Under-performing units were sold resulting in 300% increase in profits over 5 years.
Issues addressed
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Business owners were in conflict as to future strategy, creating a confused and disenfranchised management team
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Profitability being weighed down by 2 under-performing divisions, which was consuming board & management attention
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Legacy work-practices and corporate structure leading to inefficient resource allocation, and a confused sales-process
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No clear succession plan for the owners
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AltusQ introduced by concerned debt providers.
Actions implemented
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‘Hard’ succession & strategy conversation facilitated with the two Founders, resulting the amicable and structured exit of one Founder
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Review of the Group’s six businesses conducted, resulting in a structured plan to dispose of 2 under-performing units, a new business structure, and project priorities established
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Functional review and restructure with external CEO recruited
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New channel strategy designed and implemented.
Results achieved
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Under-performing unit was disposed of, creating capacity to invest in core ‘cash cow’ business
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Headcount numbers significantly reduced, and staff efficiencies improved
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New sales model opened access to new high-volume clients, further enhancing profitability
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Profitability increased three-fold over a 5 year period
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Owner now freed up from the day to day running of the business.