Interim Division General Manager

Background: I was appointed general manager of a division of a middle market capital equipment company when the VP/ GM and Director of Sales suddenly resigned.   This capital (more) equipment and tooling company serving heavy industries saw revenues decline from $60+ million to less than $40 million.  During the down turn the VP/ GM and Director of Sales resigned giving 2 weeks’ notice.  The company’s CEO was unable to focus on the division due to challenges in his operation and the wind-down of a third division.  Therefore it required a stabilizing force to guide it through a transition.

Actions Taken:

  • Completed an assessment of the operation and recommended actions
  • Reorganize division flatting the reporting structure
  • Worked with the CEO to shift corporate financial and HR functions from this division to the division run by the CEO
  • Implemented cross functional teams to cut costs, monetize slow moving inventory and outsource low volume production to reduce the breakeven point of division
  • Identified a new GM from within the organization to lead the division.

Results: This engagement lasted only 6 weeks and resulted in the company reducing its breakeven point and working capital so that it operated at cash flow neutral or better.  Eighteen months after the engagement the division’s revenues had doubled and was producing EBITDA of greater than 17%.