Case 447: The Decision Defines the North
Planning and change
Nothing stands up to good planning and willingness to change.
The first meeting was held in our office at his request. I did not want to create anxiety in the children before deciding which way to go. The founder and main shareholder of a company, the industrial packaging segment, was accompanied by two sons, both very young and active. She told us that she planned to move away from management because she had health problems and would like to leave the management of the business in the hands of the children, just following the distance.
He was looking for us because despite the efforts and disposition of all, the billing did not show growth about three years and the company lost market share. He wanted to make her solid and healthy for the next generation, she had tried many things, including replacing executives and several other unsuccessful professionals, and she was discouraged. As a last resort, if the children did not show competence, he could think about selling the company.
Diagnostics
Understand to transform
After our hiring, we started the work with a meeting with the whole family, followed by a general meeting with all the leaders of the organization to present the consultancy and the work plan that was designed.
As we worked on the diagnosis, we were able to follow several disorders in all areas and position ourselves, even in an exploratory phase, regarding the more emergency aspects.
Internally, evaluating the areas in isolation, our client presented no problems: the company was capitalized, had the necessary resources for growth and an up-to-date manufacturing plant.
Defining a North
However, when we looked at the company in a broader perspective and from the point of view of its current management, the reasons for the stagnation of growth were clear: the top management – father and children – had not been able to agree in recent years on the vision Future for the organization. Without this defined north, the areas of the company acted in a misaligned way and without integration of objectives. They worked almost exclusively with actions in the short term and with no horizon in the medium and long term.
In the survey we did with the main customers, we heard that the company “was very traditional, serious, had quality products, but was aging and showed disorientation and not knowing where to go.”
Vision of the future
Corporate Governance
Once the strategic planning was completed, we designed the new management format to be adopted by the company, in this case, corporate governance, which was immediately approved by the shareholders and implemented by the consulting firm.
In order to oxygenate the product portfolio in a short time, we resumed negotiations with a small competitor with working capital difficulties and assumed the exclusive distribution of an important complementary line with our client’s brand.
It lacked, to complement the company’s portfolio, a high technology line that should serve large customers. In time, the company began importing this new line, which came from Asia.
The market reaction was very positive, but the results could improve even more. It was necessary to develop more “scientific” and “smart” customer management, including strategies for identifying and prospecting prospects.
Once the problem was solved, the new prospecting policy brought important accounts and significant results in a short time.
We talked with the National Sales Management and we studied alternatives to a commercial structure that ensure speed and focus in the attendance of each specific line of products. In a little less than six months, a new and agile sales structure was already contracted and focused on each line of the portfolio.
The company quickly picked up the pace of growth, revenue grew significantly and profitability significantly improved, giving the family a boost for higher flights. Corporate strategic planning pointed to the north and kept the board from being able to waste energy with issues not aligned with the company’s future goals.
Workplan
The house in order, it’s time to think about the future
The decision-making process became much more agile and the relationship between shareholders had improved significantly, with much less wear and tear on a day-to-day basis.
Oxygen company, expressive growth, acquisition of the company competing, construction of a new and large industrial unit, now lacked to turn attention to the issue of driving in the future, which passed the subject succession.
Our relationship with the children had shown that both were very motivated to assume the role of chief executive, but they needed a little more experience, maturity and time. Explaining the situation, both agreed that they were not yet prepared to assume the position of chief executive of the company.
We presented our solution proposal, which was accepted by all, without restrictions. We designed the profile of the new chief executive and helped identify a qualified professional in this market.
Prior to the entry of the executive director and to streamline and direct his work within the parameters negotiated with the family, we elaborated a work plan for the first 12 months of management.
Five years have passed and much has changed. We ended our work after two years, since the beginning of the diagnosis, but we continue to follow the evolution of the company.
The executive director remains there, has brought excellent results and relates very well with the whole family.
The father has acquired a lodge on the beach and comes to the company once a month to preside over the council meeting. The children continue to act, supported by the executive director and the new successor is clearly outlined.
The company assumed the absolute leadership in its segment of operation. Its distribution is national, also exporting some products. It has received, in the last years, proposals of purchase by Brazilian and Foreign groups.
“The company is not for sale,” categorically states the shareholder and his children. “We will be twice as big in five years,” they conclude.
