A case of transforming a business
An industrial services company, a divestment from a larger corporation, was growing rapidly. As sales increased nearly five-fold, the company started to attract the interest of private equity companies. The company was eventually sold to a new owner while a minority of shares remains with the management.
Due to the rapid growth, the leadership has been heavily focused on existing processes and operational matters. New staff have been recruited to solve acute problems, which has resulted in high staff turnover.
The customer base consisted of few key accounts. Losing some of the biggest accounts caused major financial effects for the company. Furthermore the pipeline for new accounts was starting to wither as the company was simultaneously expanding to new businesses through acquisitions. Integration of these companies was not very successful due to the old processes in use at the company.
Leadership issues affected the company on all levels. There was a need to change from a process-driven organization towards a service-focused organisation.
For maximum impact, the leadership issues needed to be quantified and prioritised. Alumni was asked to identify key issues of the company's leadership. Through a management audit process, Alumni helped the board to identify and prioritise issues in the company.
The key findings were presented to the board and management, providing potential solutions to the key issues. Each individual also received feedback on leadership style with a clear development focus.
The actual process took two weeks, including feedback sessions. Our advisory role continues. With proper leadership, structural changes to remedy leadership issues can be executed to effect performance. The board of directors used our findings and promoted a new CEO from the management team. The new CEO received the full audit report from Alumni and created a plan to transform the company.
Posted on April 13, 2016 1:08 PM | Permalink