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Transformation to Enhance Performance of a Highly Unprofitable Business Unit for Short-term Profitability with Sustainable Market Positioning

Interim Mandate Objectives as Global CRO ad interim

Strategic restructuring to eliminate performance deficits while increasing efficiency, achieving the break-even point in the short term and securing profitable growth in the long term.

Company in the OEM / Machine Builder Industry  

Globally operating mechanical engineering company with American parent company, featuring decentralized development, production, sales, and service locations with
900 employees / €500 million revenue

  • Highly unprofitable global business unit

  • Service-oriented technological services

  • Employee competence as a central success factor
     

Identified Intervention Areas

  • Dysfunctional performance patterns due to historical growth and suboptimal post-merger integration

  • Impaired innovation capacity, development speed, and implementation efficiency

  • Loss of motivation and trust among highly qualified employees

  • Lack of harmonization between decentralized business units

  • Insufficient process discipline and frequent crisis management

  • Unclear functional assignments and unbalanced decision-making authorities

  • Silo mentality instead of enterprise-wide optimization

  • Inadequate commercial understanding in operational units

  • Poor data harmonization across heterogeneous IT systems

  • Unstable spare parts business with incomplete product data

  • Inefficient pricing structure with inadequate margin management

  • Insufficient commercialization of services provided
     

Implemented Measures

  • Implementation of a "Service-as-a-Business" model as an independent business model

  • Establishment of three globally acting competence centers

  • Introduction of an AI-supported omni-channel communication platform for reactive and proactive customer engagement in after-sales service

  • Consolidation of unstructured product data from different IT systems

  • Implementation of new call-to-case workflows and optimized billing processes

  • Introduction of global planning and work order audits for same-day services

  • Creation of profitable service-level agreements

  • Expansion of service offerings and reduction of inventory

  • Logistics optimization of global refurbishment processes

  • Optimization of customer program management offerings

  • Implementation of dynamic forecasts with corresponding KPIs and OKRs according to product portfolio

  • Establishment of control mechanisms for internal charge codes

  • Introduction of dynamic pricing and financial management training programs
     

Results

  • Short-term achievement of the break-even point within defined timeline

  • Sustainable transition to a stable profitability zone

  • Development of a performance-oriented organizational culture with measurable value creation

  • Securing competitiveness through increased efficiency and quality

  • Development of a sustainable growth model for future expansion

  • Increase in operating margin by 10 million US dollars within eight months

  • Break-even point achieved in the service organization

  • Significant performance improvements through reduced response times

  • Accelerated on-site services with professional tool management

  • Increase in spare parts delivery to a one-time delivery rate of over 93%

  • Expected revenue growth through proactive customer approach and expanded service offerings

  • Successful restructuring and commercial optimization of the partner network

  • Transformation into a scalable, globally operating, customer-centric, and profitable service organization

  • Change in corporate culture through introduction of customer-friendly Quick and Deep competence centers
     

Applied Competencies

  • Proven success in short-term performance improvement under crisis conditions

  • Ability to rapidly implement performance measurement systems

  • Capability to identify and eliminate dysfunctional performance patterns

  • Expertise in transforming service-oriented technology companies

  • Competence in restructuring global service organizations

  • Know-how in implementing data-driven business models

  • Experience in building customer-centric competence clusters

  • Ability to establish clear areas of responsibility and processes

  • Expertise in optimizing margins and service portfolios

  • Change management competence to overcome silo mentality

  • Ability to create a customer-oriented mindset

  • Expertise in developing and implementing innovative service concepts

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