Mentor Coach for Next Generation President

Background: The owner of a middle market foundry and machine shop (UAW) needed to step away from the business yet there was no successor in place.  The company (more) was under moderate financial stress due to a recession that caused a strained relationship with its bank.  The owner desired to transition running the company to his son who was a solid businessman yet inexperienced.

Actions Taken:

  • Conducted an assessment to develop a revitalization plan to be execute in conjunction with the owner’s son (new president).
  • Developed a new quoting and bidding process and model to more accurately estimate production costs and profit margins for products.
  • Evaluated the profit  margin of the company’s products identifying those with unacceptable margins
  • Met with its major customer (Fortune 50 customer) to negotiate price increases on specific products
  • Implemented lean manufacturing and work standards that increased direct labor productivity.
  • Developed a business plan and financial plan that was presented to its bank as part of extending its loan agreements

Results: The Company’s EBTDA almost doubled the following year.  Several years later the business continues to be solid, operating company under the leadership of the owner’s son.