Interim COO in a Family-Owned Manufacturing Business – Interim Management Case Studies
Interim management impact on a family-owned manufacturing business when an interim COO stepped in.
This article examines the impact an interim executive had while working in a family owned manufacturing business after he was brought in as an interim COO 2-3 days a week for six months to help address some of their challenges.
The company was facing an increased cost of goods, and they needed to restructure their management team. There was a need for improvement in SKU mixed pricing, fill rates and in-line productivity. The company had lost its strive for excellence.
Implementation by the interim executive
To help address these concerns the interim COO implemented a 1-page strategic plan down from 27 pages; re-established dashboards to drive and manage the business for each department. Focused on 60 and 90-day action plans, rather than a full year, The Interim COO created business champions who all had full authority to run their departments in the best interest of the company. The Interim COO also performed a full line and SKU analysis while optimizing line production and work schedules. The Interim COO also established teams and decision-making process.
Through all this work the interim COO was able to help the company achieve some impactful results that provided savings equivalent to 3 times in sales. There was a 50% drop in the cost of goods, 300 SKU’s were identified to help create warnings when price increases occurred and dropped 100 slow-selling SKUs. The fill rate was increased by 20%. They reduced variability on production lines, decreased scrap by 4% and decreased delivery time. The CEO commented, “Mark was a key part in putting the group together, that remained with the company after the transition, in coming up with a game plan for forward.” An employee even commented, “What you saw in me made a difference in my life. Thank you for believing in me.”
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