Lena Haeger, Nordic Interim Executive Solutions
Lena Haeger, Nordic Interim Executive Solutions

Background

The company is a well-known Swedish company, part of a small group with foreign owners. The Group had been losing money for years, the company was almost bankrupt and the financiers forced a change of CEO. Motivation in the organization was lacking, but the loyalty was high.

Mission and Challenge

An interim CEO was appointed for 6-8 months to create a turnaround strategy and begin the implementation of measures that could ensure continued operation.

What did the interim CEO do?

  • The business was mapped through conversations with employees to quickly create an overview of the situation
  • Simple improvements based on the organization’s proposals were implemented with immediate effect and with a focus on improvements in cash flow
  • An in-depth analysis to diagnose was carried out and an action plan with an economic forecast was developed
  • The main recommendations were:
    • define clear goals and strategies
    • establish KPIs, cost estimates and a clear organization
    • streamline internal processes and create context after staff cuts
    • develop internal competencies
    • establish clear distribution strategy and customer segmentation, increase sales focus and market in step with time
    • appoint people in charge of product and customer profitability and for product range control
    • strengthened integration and exploited synergies within the Group
    • focus on working capital to optimize cash flow

The conclusion showed that regardless of the result of the improvement work, the business was in need of a capital injection. The owners, therefore, decided to divest parts of the company.

Result

  • Large parts of the change work were carried out as planned, in parallel with finding a financial solution
  • A new ownership structure
  • The company is now run according to the same plan with new owners, changed organization, new ways of working and an upgraded way of doing business
  • A turnaround has been partly undertaken on the cost and refinancing side of the business, and the next step will be to take on the revenue side
  • The company now works with profitability responsibility, plans and common goals, where all employees have defined their own priorities to achieve profitability. Much work remains to be done but the company is on the right track

Reflections

“As an interim, you have several clients and it is important to identify and communicate what has value for the various stakeholders: the client, new investors and the business itself in the form of customers, suppliers and employees.

You never know where that happens in an interim mission, the conditions can change completely. Perhaps the mission statement is not based on a correct understanding of the challenge – clarity must first be created. As interim CEO for a turnaround, you shift up a gear to quickly find solutions, create results and deliver value. You can rest after the assignment has ended!”


Björn Henriksson, CEO, Nordic Interim

Contact us to discuss your challenges!

Do you want to know more about how we can support you in driving a successful turnaround? We know what competencies, experiences, and leadership style are required to solve your challenges.

Björn Henriksson, CEO of Nordic Interim

+46 8 503 855 00

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