Private Equity Backed Manufacturer
A manufacturing industry client with significant investment and governance issues with their private equity based shareholders who were concerned about their operational performance level being below break even. This meant that they were reticent to commit further investment until the strategic and organisational barriers were removed.
The board and senior team needed to be developed into a cohesive leadership team with clearly defined roles and responsibilities as well as improved director behaviour to correct a dysfunctional team. The senior team was very informal with no effective controls or risk management practices being evident below the main board. Executive Directors openly did not get on and performance management was absent across the business. This manifested itself in slow, change resistant decision making which focused on individual silos and organisational ‘politics’ more than growth. Moreover, the company was loss making and exhibiting severe morale and staff performance issues. This had led to financial losses year-on-year, a declining customer base and several health & safety enforcement notices which threatened the viability of the site.
Our consultants met the client to diagnose issues using structured interviews, 360 degree feedback and workshops. The project led to our team facilitating the writing of the governance framework, gap analysis, putting in place personal development plans and the recruitment of two non-executive directors. A new executive director was recruited some time after the initial project concluded to invigorate the leadership team.
Over time poorly performing directors were managed out of the business, the new non-executive directors and the executive director were able to add governance discipline and help shape the ongoing business strategy. Previous health & safety scares were used to help shape risk management processes. Today the company is significantly improving its financial performance and work practices at a time when the market would suggest decline.