Established publicly held manufacturing company with 15 business units continually struggled with certain business units not meeting objectives.
The portfolio company CFO decided to hire an interim CFO to assess each low performing business unit. Typically, these assessments involved improvement in sales and operations, personal, policies, processes, and systems.
The interim CFO spent 1-3 months working directly with each business unit observing and assessing the business unit’s management teams, capabilities, and constraints. After thorough buy in by the management team, a plan of action for improvement was developed for each business unit, which was managed by the interim CFO.
A multitude of changes occurred due to the interim CFO’s involvement, including changes in key personnel, improvements in sales and operations planning, pricing, KPI reporting, data analytics, cashflow, inventory control and variable compensation programs. As a result, practices were adopted, and gross and net margin improved substantially.