Reorganization / Performance
Situation
The French subsidiary of the world leader in the development and optimisation of combustion engines has accumulated six consecutive years of losses covered by successive debt waivers and has seen its turnover fall by 38%. The Austrian parent company decided to restructure and reduce the workforce.
Objectives
Restructure and reorganise the French subsidiary.
Tasks
Our Transition Manager immediately implemented the requested action plan and balanced the accounts (excluding restructuring costs) in the first year to restore the subsidiary’s profitability.
Focusing on human resources, the mission extends to the General Management to reorganise the subsidiary from top to bottom. Searching for employees in line with the needs, relaunching the commercial action, restructuring the financial and accounting part. We were also asked to set up an efficient management control system, to install SAP and to reorganise the HR policy, particularly in terms of salaries…
Results
A few strategic deals with major clients were secured against competitors. Turnover doubles to 50% above its previous average level. Since the operation, the French subsidiary is profitable again, gradually reimburses the head office for the debt waivers of previous years and gives profit-sharing to the employees.
