Restructuring & Turnaround
Operational stabilisation and improvement in the financial performance of a mechanical engineering company
The task/mission
Assuming operational management responsibility during a critical phase for the company. Restoring the company’s ability to operate, improving its cost structure and ensuring its long-term viability.
The company
A German mechanical engineering company operating internationally, with around 300 employees at a single site in southern Germany. The company was acquired by a larger group and was undergoing a comprehensive integration and restructuring process.
The situation
Structures that had evolved over time, poorly co-ordinated processes and the introduction of SAP S/4HANA were hampering operational performance. At the same time, the revenue forecast deteriorated significantly. High staff costs, as well as problems with delivery capacity and quality, increased the pressure to take action. The managing director’s absence due to illness meant that rapid stabilisation of the management team was also required.
The requirements and expectations
Restoring operational capability in the short term, establishing a leaner organisation and achieving a sustainable improvement in the cost structure. Ensuring the smooth running of SAP processes and stabilising production, delivery capacity and quality.
My role
Assumed overall operational responsibility as Interim COO and later as CEO. Developed and implemented a new operational structure, identified opportunities for financial improvement and led the restructuring process. Worked closely with group management, senior executives and staff.
The solution
Development of an OPEX action programme with a total potential saving of around €8 million. Reorganisation of the operational divisions and implementation of staff cost-cutting measures totalling around €4 million. Optimisation of processes and areas of responsibility, stabilisation of SAP S/4HANA workflows, and introduction of a consistent system for managing measures and key performance indicators.
The long-term benefits for the company
The operational organisation was reorganised and financial performance improved. The OPEX programme of measures was implemented or initiated. Delivery capacity, management structures and customer confidence were stabilised.
According to subsequent feedback, the 2025 financial year ended on a balanced note. A significant new customer project further supported the positive business performance.