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.

Company background

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.

Results achieved

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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