Turnarounds can be extremely valuable when you have politically or financially invested in a project! If a company you have involvement in is in serious trouble, we have the experience to repair it. Sometimes it is a simple house cleaning or organizational issue, other times it requires a complete and severe revamp of the model, personnel, finances, strategy, etc.
Department Issues that Affect the Bottom Line
Our client approached us with a common problem. They had grown fast over the last few years and had admittedly promoted employees to management and assigned responsibilities out of necessity and in haste vs. in a well thought out and controlled manner. Most departments were working well enough to get by but one in particular had multiple issues including a huge accounts receivable and a 37% application error rate that was threatening the health of the entire company.
Capacity was engaged to turn these problems around and make the company healthy again. We interviewed employees and managers, reviewed policies and procedures, and applied problem solving methodologies to determine the cause of the problem and a potential solution. Of course part of our assignment was to fix the problems and keep the manager since he was well respected by the owners.
Our findings revealed the manager was capable but simply being asked to focus on too many priorities. We quickly identified a new procedure and identified an employee who knew the most about the application process and had management potential. We re-organized the department by creating separate applications and accounts receivable departments. The new manager was given management training and the original manager was left to focus on accounts receivable.
After only one month, the error rate was reduced to 0% where it remained. The new manager thrived in her new role and became a valuable asset to the company. The old manager was okay with the change and successfully got the accounts receivable into line.
The elimination of fines generated by the erroneous applications and the improved collections more than paid for the new manager’s salary. Increased customer and vendor satisfaction increased improved profits even more and the company went on to be quite successful.