Change Management Case Study: Restructuring an Industrial Site
Updated: Jul 15, 2020
An international group in the electrical solution sector with approx 3 billion revenue and 5000 employees worldwide needed to restructure, due to decline in its niche market, which significantly impacted orders and results at production sites worldwide.
To rationalize production costs and bring synergy to the business and industrial processes, the group decided to perform a change management operation on its flagship factory of 1000 people. An interim/change manager was originally in place to lead and start implementing the project, however a permanent replacement was required to lead the company and we were tasked with finding the Managing Director/Plant Manager of this flagship production site.
The assignment came with a number of challenges, including a timeframe of only six months. It was also important to protect the group’s public image, as well as maintain customer service and continue normal business operations. Several other factors added to the challenge:
The presence of a labour union with recourse to all legal measures offered within the context of an employment protection plan, creating a tense social environment
The involvement of local politicians, who called attention to economic issues
The ongoing competitive decline of the market area
The requirement to match the operational excellence philosophies with the cultural development of the organisation.
RES researched the market, providing a shortlist of 5 excellent candidate. Consequently, one candidate was chosen to take the position as Managing Director. This candidate was chosen due to 20 years’ experience in Plant Management along with an expertise in electrical manufacturing and proven track record of success in Change Management Projects particularly regarding employee relations and operational excellence.