Interim Leadership: A Case Study.
The Situation
As an Interim Manager with a finance background, I was initially approached to assist with preparing and ensuring the annual financial statement for a company. However, this was merely the opening question. As it involved two legally separate entities, some issues were already apparent. During the initial conversation, the actual problems became (partially) clear:
Lack of effective leadership since the departure of the long-standing CEO
Insufficient experience in managing an independent enterprise
Lack of overview and sensitivity to critical issues (e.g., security and risk management)
Opaque profitability
A recently acquired production company not yet fully integrated
Another acquisition ("purchase within a purchase") not yet completed
Unknown cost structure of the new companies
Absence of mutual understanding on how to run a successful business
Sales activities for France and Spain organizationally located in the Italian sales company, no support or active collaboration
The group and both Italian companies were in a financially strained position
In addition to these "hard facts," it quickly became apparent that work needed to be done on collaboration, including:
Active listening
Trust building
Leading by example
Admitting mistakes and correcting decisions
Thus, a special sensitivity to intercultural nuances and issues was essential. Besides understanding the language, comprehending the acting individuals and maintaining a good measure of appreciation were necessary.
The Actions
My role in the company was that of Managing Director and CFO for both Italian entities. I implemented the following measures:
Ensuring the annual financial statement and establishing ongoing monthly statements and forecasts
Realigning the organization
Containing management turnover
Integrating the acquired company
Analyzing all activities of the Italian sales company to inform potential future organizational decisions
Installing necessary operational functions
Optimizing project business processes
Strengthening the organization for future business
Implementing economically sound practices
Ensuring future financing within the group
The Results
After 13 months of intensive work, we recorded the following successes:
Ensuring financial and procedural transparency
Selective strengthening of the organization
Installing a controlling function as a supportive business partner
Successfully carving out French and Spanish sales activities as independent cost centers outside the Italian organization
Creating risk management and security functions
Implementing the "Regional Purchaser" concept for Italy
Streamlining sales expenses
Redesigning the offer process
Establishing effective project controlling
Integrating the production company into group financing
Improving the economic situation through working capital optimization
(approx. -30%) and cost reduction
Lessons Learned
This case study demonstrates how targeted restructuring measures and clear strategic direction can put a company back on the path to success. As an Interim Manager, I was able to leverage my experience to implement sustainable changes and secure the company's future viability. It also showed me that such projects cannot be carried out by pure specialists, as the soft factors are too crucial.