Turnaround, Mechanical engineering, Europe

From bankruptcy back to the world's top

Bankruptcy is rarely a sign of a bad product or a bad workforce – often management has acted against commercial rules. It offers the chance to reset the company clock to zero. Turnaround is the supreme discipline of change management.

Client: Machinery manufacturer
Industry: Mechanical engineering
Location: Europe
Duration: 24 months
Services: Interim management

Project brief

Starting point: Insolvent business in bankruptcy
Methods: Change management / turnaround, marketing mix, lean
Stakeholders: New owner, management and entire workforce
Result: 3 % EBIT after 1 year, 8 % EBIT after 2 years

Measurable. Traceable.

3% EBIT
after the first year: 8% EBIT
after the second year: 8steps
structured turnaround process

8 steps turnaround. A proven 8-step process quickly creates transparency and small wins – and brings back the team's trust.

From the starting point to the result.

Challenge

The business was in bankruptcy, the workforce afraid of losing their jobs. No stone was left unturned – financially, administratively and technically, setbacks had to be planned for.

Insolvency and loss of trust
Fear and uncertainty in the workforce
No lived risk management

Approach

As turnaround manager, WOLF radiated calm through best-practice leadership and built trust. The turnaround was planned in eight steps, presented to the workforce and implemented rigorously – keep what works, create what's new.

8-step turnaround known to every employee
Risk management down to the smallest unit
New marketing mix and lean in production

Result

3 % EBIT after one year, 8 % EBIT after two years. The business was not only saved but led back to the top of its niche worldwide.

3 % EBIT after 12 months
8 % EBIT after 24 months
Back to the world's top

The path to the result.

24 months

Month 0–2
Calm & trust
Takeover, leadership, communication with the workforce.
Month 2–4
8-step plan
Turnaround planned and presented to the team.
Month 4–12
Implementation
Marketing mix, lean, risk management – first wins, 3 % EBIT.
Month 12–24
Scaling
Profitability expanded to 8 % EBIT.

Month 0–2
Calm & trust
Takeover, leadership, communication with the workforce.
Month 2–4
8-step plan
Turnaround planned and presented to the team.
Month 4–12
Implementation
Marketing mix, lean, risk management – first wins, 3 % EBIT.
Month 12–24
Scaling
Profitability expanded to 8 % EBIT.