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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
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Highly unprofitable global business unit
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Service-oriented technological services
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Employee competence as a central success factor
Identified Intervention Areas
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Dysfunctional performance patterns due to historical growth and suboptimal post-merger integration
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Impaired innovation capacity, development speed, and implementation efficiency
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Loss of motivation and trust among highly qualified employees
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Lack of harmonization between decentralized business units
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Insufficient process discipline and frequent crisis management
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Unclear functional assignments and unbalanced decision-making authorities
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Silo mentality instead of enterprise-wide optimization
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Inadequate commercial understanding in operational units
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Poor data harmonization across heterogeneous IT systems
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Unstable spare parts business with incomplete product data
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Inefficient pricing structure with inadequate margin management
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Insufficient commercialization of services provided
Implemented Measures
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Implementation of a "Service-as-a-Business" model as an independent business model
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Establishment of three globally acting competence centers
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Introduction of an AI-supported omni-channel communication platform for reactive and proactive customer engagement in after-sales service
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Consolidation of unstructured product data from different IT systems
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Implementation of new call-to-case workflows and optimized billing processes
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Introduction of global planning and work order audits for same-day services
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Creation of profitable service-level agreements
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Expansion of service offerings and reduction of inventory
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Logistics optimization of global refurbishment processes
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Optimization of customer program management offerings
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Implementation of dynamic forecasts with corresponding KPIs and OKRs according to product portfolio
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Establishment of control mechanisms for internal charge codes
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Introduction of dynamic pricing and financial management training programs
Results
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Short-term achievement of the break-even point within defined timeline
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Sustainable transition to a stable profitability zone
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Development of a performance-oriented organizational culture with measurable value creation
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Securing competitiveness through increased efficiency and quality
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Development of a sustainable growth model for future expansion
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Increase in operating margin by 10 million US dollars within eight months
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Break-even point achieved in the service organization
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Significant performance improvements through reduced response times
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Accelerated on-site services with professional tool management
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Increase in spare parts delivery to a one-time delivery rate of over 93%
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Expected revenue growth through proactive customer approach and expanded service offerings
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Successful restructuring and commercial optimization of the partner network
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Transformation into a scalable, globally operating, customer-centric, and profitable service organization
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Change in corporate culture through introduction of customer-friendly Quick and Deep competence centers
Applied Competencies
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Proven success in short-term performance improvement under crisis conditions
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Ability to rapidly implement performance measurement systems
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Capability to identify and eliminate dysfunctional performance patterns
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Expertise in transforming service-oriented technology companies
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Competence in restructuring global service organizations
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Know-how in implementing data-driven business models
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Experience in building customer-centric competence clusters
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Ability to establish clear areas of responsibility and processes
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Expertise in optimizing margins and service portfolios
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Change management competence to overcome silo mentality
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Ability to create a customer-oriented mindset
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Expertise in developing and implementing innovative service concepts
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