The foreign owners of a Swedish company have to shut down factories in Europe due to reduced profitability. The challenge lies in dismantling operations, dismissing employees and environmental clean-up of the factory fields.
Nordic Interims’ interim CEO says: “I started the assignment as if we were going to do a turnaround. I talked to the employees about their views on the business, what was wrong and what needed to be changed, and based on that I presented my analysis in a 5-bullet list. At the same time, the management team worked intensively to prepare for the decommissioning work. We contacted the municipalities, job coaches and private outplacement companies.”
“The owners’ decision became official after 1.5 months. Within 24 hours, I had informed the staff and the media about the action plan. It was important to focus on why the decision was made, to avoid future question marks. Many people were sad but saw that we treated all employees well and that it was important to us that they felt as good as possible and preferably got new jobs.”
“My main focus, which I would like to advise other business executives to keep in mind, was to make sure that the employees worked with me instead of against me. Turning fear into a sense of hope helps those who feel great uncertainty. I wanted to make them want to make a brilliant end. To get there, they must feel that they have been lifted as individuals and listened to. I made an agreement with the union that our employees could schedule themselves and decide when they wanted to work. They got time off to go to training and job interviews – as long as the machines went.”
Results
- In collaboration with the trade union, a plan was made to maintain production. We set weekly goals with production bonuses, and everyone shared this if the goal was reached. We surpassed the previous production rates, with even higher quality!
- The employees made a formidable contribution and they received an extra Christmas present.
- We sold all fixtures and fittings, negotiated contracts, dismantled the machinery and environmentally cleaned the fields.
- We are now working with the municipality to make one of the beautifully located industrial fields into residential areas.
- The owners were satisfied. The closure went faster than expected and within set financial limits.
The interim CEO:s reflections
“It was a difficult task emotionally. The essential thing was to understand the most important unit of the business: the people. My challenge as a leader was to understand the people and make them believe in the idea, so that they would continue working with high productivity – and that they like it! Otherwise, it will be micromanagement, instead of thinking about the future.”