Restructuring Project Examples

Example 1

A medium-size paper manufacturer in north-western Switzerland came into a profit, and ultimately, liquidity crisis because the signs of globalization and international transparency were not seen. The price deterioration in international markets led internally to a significant outflow of funds, externally to overproduction worldwide and hence to an overall consolidation in the industry.
Restructuring on the production side involved the closing of a production plant and combining the remaining capacity in the second production plant. The foreign companies have either been sold and an independent distribution network for a more profitable core range created, or an independent company through Management Buy-Out was formed. The restriction on profitable products led to more focus, optimal batch sizes and significant reduction of inventory. With the closing of a manufacturing plant, it was possible to rezone the property for residential housing and sell with a high profit margin. The outsourcing of all logistic activities such as shipping and receiving, packaging and even transportation brought additional cost benefits and flexibility. The eventuel sale of the logistics centre to a transport company allowed the business to clean up its balance sheet completely. At the end of 2005, the company was operating with positive figures again.

Example 2

A German publishing house underwent intense diversification after drastic market capital allocation and thus had lost sight of its core competency as a publishing house. The result was the erosion of the core business and the capital investment in inefficient processes followed by significant operating losses over the years, and a fast-appproaching liquidity crisis.

The aim was to lead the publisher back in to its core business as well as to stabilize it in such diffucult market conditions. Through restructure measures, the 25 year-old publishing house has rebound from its losing streak - back into the profit zone; doing so with the highest profits in its history, and above average compared to others in the industry.

Today, the company asserts itself in a difficult market environment with a clear product policy that is close to its core competencies, combined with a goal-oriented process management.

Example 3

An automotive supplier got into difficulties after losing customers. The local management was not in the position to make or act upon necessary decisions. Far-reaching competencies are therefore important to reach and carry out unpleasant decisions. A clear idea of direction and firm sense of where exactly to implement changes were both necessary prerequisites for the success of the reorganizations. Understanding people and human nature, along with leadership skills and a sense of natural authority, also need to be addressed as factors of success.
A good feel for cultural peculiarities abroad, specifically, to be able to win over the workers' council, was a necessity.

Example 4

An international automotive supplier wants to lead its production site of about 400 employees back into the profit zone. The productivity is at a competitive disadvantage relaive to oother factories. The production processes are not aligned and continuously leading to delays, bottlenecks and failures. Inventory is too high. Because of poor results, the morale of the team is low. An Alpha interim plant-manager with plenty of restructuring / reorganization experience arrives. The Interim Manager first ensures backing from the management-team and then prepares a restructuring plan together with the team. The team implements the plan by applying Change Management methods. Already after four months, the Interim Manager achieves initial positive results and is thus able to get the employees motivated again. After 12 months, the Interim Manager together with the team achieves positive results and incorporates a successor who ensures that the revised production processes and increased productivity in maintained, thereby endowing the factory with a positive future as a production facility. 

Additional Project Examples

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>> Finance and Accounting
>> Human Resources Management