Brief summary of the case
In a challenging environment that brought not only economic uncertainty but also profound organizational and interpersonal problems, a GOiNTERIM manager managed to turn around the fortunes of an Italian engineering company. With an extensive background in general management, CFO issues and finance, the manager showed how to successfully shape a transformation through clear strategy, tact and intercultural competence.
The initial situation
The original inquiry to the GOiNTERIM Manager concerned support with the preparation of the annual financial statements. However, it became clear during the initial discussions that this was just the tip of the iceberg. The company’s problems went much deeper:
- A lack of effective management following the departure of the long-standing managing director.
- Lack of experience in managing an independent company.
- Non-transparent profitability and a strained financial situation.
- Two acquisitions, one of which was not integrated and the other not completed.
- Lack of coordination and cooperation between the Italian and other Group companies.
- The French and Spanish activities were hanging in the Italian company without being managed and controlled.
In addition, a strained corporate culture became apparent. There was hardly any trust, decision-making processes were inefficient and there was a lack of mutual understanding for necessary changes. Particularly challenging were the intercultural characteristics that played a central role in communication and collaboration within the organization and with external stakeholders.
In addition, the Group and both Italian companies were in a financially strained situation. The organization was not aware of the dramatic cost situation and there was a lack of transparency regarding the company’s financial situation.
The approach: change through structure and sensitivity
In his role as sole Managing Director and CFO, the GOiNTERIM manager assumed responsibility for both Italian companies. His aim was not only to overcome the structural and financial problems, but also to lay the foundations for sustainable success. In doing so, he relied on a combination of strategic realignment, operational excellence and interpersonal sensitivity.
The central measures included:
- Creating financial and operational transparency: Establishing monthly financial statements and forecasts, integrating the production company into Group financing and implementing effective project controlling.
- Realignment of the organization: restructuring of management, integration of acquired companies and streamlining of sales expenses.
- Cultural change: building trust, active listening and leading by example. Mistakes were openly addressed and corrected in order to promote a culture of openness and collaboration.
- Intercultural competence: By understanding cultural characteristics and communicating respectfully, it was possible to improve cooperation between Italian and international teams.
The success: a sustainable new start
After 13 months of intensive work, the success of this holistic approach became apparent. The most important achievements include
- Economic stability: Optimization of working capital by 30% and significant cost reductions.
- Effective organization: establishment of controlling and risk management functions, streamlining of the sales structure and establishment of a new quotation process.
- Sustainable integration: The production company was successfully integrated into Group financing and the sales activities in France and Spain were organized as independent cost centers.
- Strengthening the corporate culture: By establishing open communication and creating an environment of mutual trust, management turnover has been reduced.
- Successful carve-out: The French and Spanish sales activities were carved out as independent cost centers outside the Italian organization.
Lessons learned: Successful transformation requires more than specialist knowledge
This case impressively demonstrates that successful transformations are not achieved through technical and financial expertise alone. The so-called “soft facts” – such as the ability to build trust, take intercultural differences into account and promote effective communication – are often crucial.
For the GOiNTERIM manager, this was not only a professional challenge, but also a personal affirmation. Thanks to the combination of strategic foresight, operational expertise and human understanding, he was not only able to stabilize the company, but also align it sustainably for the future.
The success of this mission exemplifies the high quality and versatility of GOiNTERIM managers’ work. They not only have the necessary specialist knowledge, but also the ability to make the right decisions in difficult situations and get companies back on the road to success.
Would you like more information or do you have similar challenges? Talk to us, we will be happy to help you!
Dr. Martin Ludwig Mayr, Managing Director
martin.mayr@gointerim.com
+49 89 20 500 8695
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