Environment, Initial Position, Task

Proceeding, Achievement

Company:
Manufacturer of tube joining systems for Hydraulic / Automotive / Trucks,
400 emp./105 Mio.€/a (2014)

Responsibility:
CEO, overall responsibility (assigned responsibility for sales, marketing, engineering and quality)

Initial position:
Stagnating revenue development as of 2011 after regaining the pre-crisis level 2007, beginning profit erosion on still good level, limited product range, quality supplier and well- known brand.

Task:
Trend reversal of the profit erosion, strategic company development back to again continuous growth.

Proceeding:
Intensification of new customer and new project acquisition by introduction of a sales project reporting for all locations, no price dumping to win market shares but stepped up utility argumentation.

Consequent cost management in all divisions by an implemented new KPI cockpit.

Relocation of main areas of assembly to Poland.

Development and implementation of a "Growth Strategy 2020" after planning and executing a multi-month strategy development process including the complete management team. Thereof derived:

• Launching of further internationalisation
• Expansion of the product range
• Entry into customer specific system business with complete pipes
• Introduction of an innovation management
  
• Conception of a system for operational excellence
  

Achievement:
Exceeding of the found budget in the first year in revenues and profit (+10%).

Cost savings in the assembly area of 30% with safeguarding of constant quality and delivery performance and without layoffs.

Introduction of two new product lines with a revenue potential of together >20Mio.€/a.

Set-up and introduction of the system business on the market with a forecast >25Mio.€/a, secured by a business plan.

Establishment of new subsidiaries in Eastern Europe and Scandinavia started with employment of local managers. Expansion of the subsidiaries in South America and China. Start in Korea and Japan via cooperations.