Turnaround of a subsidiary
Legally independent limited liability company of a medium-sized group of companies (listed on the stock exchange, German AG), in a niche industry sector in the high-tech environment as (sole) managing director
Company
Parent company
- Sales approx. EUR 250 million
- Employees approx. 1,700
Subsidiaries
- Turnover approx. EUR 30 million
- Employees approx. 100
Initial situation
A 100% subsidiary of a medium-sized, listed company does not meet the earnings expectations of the parent company. The high dependence on the Group’s largest customer is viewed critically. In addition, a future project has still not been defined and contractually fixed with this customer. Employees manage more than they shape the business. Confidence in the management is no longer given.
My approach
- Creation of transparency and identification of potential for improvement in all areas
- Initiation of active dialogue with the customer, clarification of open issues
- Establishment of an international project management
- Definition of responsibilities within the subsidiaries
- Recording, restructuring and implementation of new processes
- Coaching of employees after intensive individual meetings
- Create team building
Successes
- Increase profitability through goal setting and tracking for all relevant functions
- Purchasing: Clear objectives and priorities led to price reductions despite the onset of the allocation market
- Production: realignment with LEAN thought approach = 10% higher productivity
- Development : Focus on platform creation to reduce development time and effort = Definition of new product platforms and first parallel development for 2 markets started
- Improvement of admin processes through redefinition and implementation = +10%.
- EBITDA increased by approx. 180% compared with budget target
- Demonstrable improvement in the relationship with the largest customer
- Future projects defined and initiated
- Contractually clean basis defined and fixed
- Improving results through renegotiation
- Successful implementation of LEAN in production +25%.
- Future defined and implementation started
- Profitability increased in the long term / sustainably
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