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Case Study 02: Interim CEO Management
Medical instrument manufacturer based in Europe.
How we approached it
During the 6-month interim management engagement, we changed the organizational structure, “renewed” its culture that became the driving force to solve quality problems and eliminate production bottlenecks, implemented a 13-week cash forecast and improved DSO from approximately 100 days to 44 days.
01.
Improve DSO
Visited a European hospital to determine why DSO exceeded 100-days.The Hospital Administrator said the invoices didn’t arrive until 45-days after shipment and then the hospital delayed processing until invoices were corrected. Prior to us visiting the hospital, the client said: “you don’t understand, European hospitals pay slowly.” After the client corrected this widespread billing problem, collections were reduced to 44 days from in excess of 100 days.
02.
Culture
Teamwork between senior management and the skilled workers was poor and the culture was a “who you know mindset.” We immediately removed the 8-designated parking spots for the senior managers (outside front door) and made parking a first come, best parking spot basis. The main parking lot was down a steep hill so it became an incentive to arrive early. After this, the skilled workers were more vocal in suggesting changes to solve quality problems and eliminate production bottlenecks.
03.
Fair opportunities
Promotion was based on being bilingual and senior managers selected the “chosen ones” they wanted to promote. We immediately offered English classes to the entire organization so everyone would be eligible for promotion. The skilled workers became more engaged in actively helping to correct the quality problems.
We've been named as Interim CEO for organizations located throughout the US, France, and the UK.
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