Successful restructuring of a medium-sized automotive supplier
Due to declining sales figures, rising costs, and outdated processes and production workflows, a medium-sized automotive supplier faced massive challenges. The company’s product portfolio is characterized by high-quality technical components that optimally meet the requirements placed on them. Shareholders and management thus realized that it was not the product, but a changing environment and the process landscape that were the cause of the problematic situation, and that drastic interventions were unavoidable.
- Challenges:
- Decreasing sales and revenue
- Decreasing profitability
- High fixed costs and inefficient production processes
- Deficient corporate strategy, specifically regarding adaptation to changing market developments
- Insufficient use of technological advancements
- Difficulties in motivating employees due to uncertainties
Solution Approach:
The company decided on interim management by Bjelić & Barth to implement a comprehensive restructuring and reorientation. Prof. Dr. Bjelić temporarily took over the management level of the company to drive the changes forward.
Our Approach:
Analysis of the current situation and derivation of approaches: the company was analyzed holistically – in terms of structure, process landscape, financial situation and market environment. In this way, the greatest potentials for optimization could be identified and prioritized.
Strategic reorientation: a further developed corporate strategy was derived from various workshops with shareholders, management and executives as well as selected employees. The focus topics were the expansion of the product portfolio and thus the development of new market segments, supply chain and process optimization.
Process optimization:
By analyzing and revising the production processes, efficiency could be increased and costs reduced. The optimal use of modern technologies shortened production times and contributed to improved quality.
Employee motivation and development:
Through improved communication and education, employees were better able to deal with the company’s situation and re-identify with it. Through an expanded training concept, the employees were – where necessary – familiarized with the new technologies and thus brought back to the state of the art. Through this mix of different measures, the team was motivated again and ready to fight for “their” company.
Financial stabilization: Through a comprehensive financial analysis and cost control, savings potentials were identified and implemented. The above-mentioned measures contributed massively to the increase in profit, so that the liquidity situation eased and financial bottlenecks could be overcome again from own resources.
Your contact person
Creating stability in uncertain times – we make interim management the lever for measurable results.
Prof. Dr. Alkesandar Bjelić
- Results:
- Through the interim management of Bjelić & Barth, the company was able to undergo a remarkable transformation. The central requirements were increased sales and profits. These could be achieved through the following measures:
- Cost reductions and improved profitability
- Efficient and modern production processes
- Clear strategic orientation and diversification
- Motivated, well-trained and empowered employees
The successful restructuring enabled the company to reposition itself and remain competitive in the long term.
This case clearly shows how interim management can be the turnaround for a struggling company in uncertain times in order to bring about rapid and straightforward change.
