Interim CEO turnaround in South Africa
Situation
The client is a world leading manufacturer of equipment to water- and wastewater industry with its headquarter in Sweden. They have a global network of several product factories and service centers. There are sales offices in more than 100 countries. The sales- and service company in South Africa had low performance and poor operating result. The business was not done according to company policy with regards to code of conduct including poor leadership.
Action
A change had to be done. The MD was asked to leave the company and an Interim MD was put in place. All in all it took only 10 working days after enquiry from the client to the interim MD was in place in Johannesburg. A Swedish interim which had long experience of running sales- and market companies in global companies and in tough environment with big challenges.
The assignment was planned for 4 months until a permanent solution was in place, but due to the fact that the client was divested twice during a period of 6 months, the assignment was extended to 16 months. It was a turbulent and challenging time for the interim MD but with his long experience he managed to lead the organization and accomplish the objectives.
Results
The client changed management twice during the assignment due to acquisitions. The Interim MD had a change of reporting structure and board of directors twice during his assignment. In spite of this he managed to accomplish his objectives independent of ownership of the company.
⦁ 25% of all staff was replaced and a new personnel policy was established.
⦁ Re-organization of the sales force including closing of two sales offices. New sales policies were established with increased sales efficiency as a result.
⦁ Operating capital drastically reduced.
⦁ The office and service sites were physically moved to a sister company with reduced back office costs as a result.