Major Goal for the Interim MD
The Interim MD should take a strong leadership role, reorganize the company and fixing a number of legal and labor union issues until a permanent successor will be identified and installed.
Among the management team and the Board was a full agreement that a total restructuring process was needed imminently.
For economic reasons, 10% or about 100 jobs should be cut immediately. A complete reshuffle of the existing management team should strengthen the position of the company.
The initial approach and strategy required splitting the mining and industrial parts into two legal entities. Subsequently, the task was about building new companies around them.
Across the two business newly formed, there were five common values identified to be implemented:
- zero tolerance on quality
- no compromise on safety
- no compromise on transparent and active communication
- Sales force expansion – literally close to double of what it was previously
- Main focus on contribution and margins (profitability)
The leadership structure was made a lot leaner, by cutting the size of the executive management team members from 9 to 4.
The management teams at all levels were restructured;
While minimizing head count overall, the best suitable people for all key functions were put at the right place, replacing low performing managers;
The company turned into profitability within 12 months.