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

  • Business owners were in conflict as to future strategy, creating a confused and disenfranchised management team
  • Profitability being weighed down by 2 under-performing divisions, which was consuming board & management attention
  • Legacy work-practices and corporate structure leading to inefficient resource allocation, and a confused sales-process
  • No clear succession plan for the owners
  • AltusQ introduced by concerned debt providers.

Actions implemented

  • ‘Hard’ succession & strategy conversation facilitated with the two Founders, resulting the amicable and structured exit of one Founder
  • 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
  • Functional review and restructure with external CEO recruited
  • New channel strategy designed and implemented.

Results achieved

  • Under-performing unit was disposed of, creating capacity to invest in core ‘cash cow’ business
  • Headcount numbers significantly reduced, and staff efficiencies improved
  • New sales model opened access to new high-volume clients, further enhancing profitability
  • Profitability increased three-fold over a 5 year period
  • Owner now freed up from the day to day running of the business.