International Case Study from SMW: Director at an Industrial Medical Goods Company

The client, an Austrian worldwide leading supplier for industrial and medical goods, finalized a takeover of a German competitor after a long negotiation. The successful signed contracts came about with very short notice. The Company acquired was led by a strong entrepreneur personality before the merger and the clear goal was to start without any difficulties from the beginning on and get the organization fast integrated in the group.

At the start, production had to be secured in terms of quantities, quality and delivery time. There was the risk of loss of key personnel and know-how within the transition period. Trust in the new owner had to be built up. Strategically important customers of both companies had to be convinced that the new alliance would continue to act beneficial in the interests of the customers.

Fast benefits on the supply chain as well as synergies in plant technology should increase the results at short notice. In the case of a rapid and successful integration, expansion plans were in the pipeline. Our client did not have the needed resources and looked for a prompt available professional who is familiar with the management of such integration.
Interim Requirements:

Experienced managing director from the industry with expertise in plant management and improvement of production processes in SME but also familiar with corporate organization. 

High requirement of social competence, team spirit and ability to motivate people. Open-minded and capable to communicate at all levels. He should have high business competences like leadership by key performance indicators, proven experience in change management and integration of companies.

Action

Since the takeover was brought to a positive conclusion shortly after long negotiations P+P Interim Management GmbH as a provider was required to present candidates who met the requirements and are ready to start within just a few days. Very quickly, a candidate was selected by the client. That client had significant experience as Managing Director and Head of Production & Technology in international companies and also Industrial Holdings.
The interim’s role in the project was Managing Director, CTO, Head of Personnel Department and Head of the integration team. The role would cover two companies in rubber and plastic industry located in Germany and would last 9 months.

Actions taken:

• Implementation of synergy projects in supply chain, production processes and plant engineering 
• With increase of productivity and expansion of warehouse technology
• Relocation of a production line from main site to second location 
• Introduction of LEAN Management
• Implementation of pilot group for further development and improvement of the company culture
• Management of Human Resources with extremely low fluctuation rate, use of temporary work, analysis and revision the wage structures and employee’s potential analysis. Some open personnel cases were resolved in the interests of the company
• Successful development of the management circle and implementation of quality management and maintenance

Results

Despite the short-term acquisition of the company, there was no business interruption. The products were delivered in the required quantity, quality and delivery times.
The Interim Manager was able to gain the trust of its employees quickly and to a high degree. The key personnel was integrated into the new matrix organization, the management circle strengthened and integrated into the expansion projects at the location. Synergy projects with the headquarters and sister companies of the group led to an improved productivity of existing plants and significant savings. 

Through a series of measures all environmental requirements for the current production and the planned expansion at the locations were fulfilled.
On the basis of the gained confidence, the raised know-how and the achieved positive results of this M&A project the group quickly turns towards the expansion plans.