Stop the Bleeding and Restore Profitability
In China’s current business environment and in times of economic uncertainty, the unexpected can happen. You may find your China subsidiary in trouble after the sudden departure of key people, or you may have acquired a company whose management team have disappeared and left the operation in terrible shape. Employee morale is low; as each day passes without effective management, the company is bleeding money, talent and intellectual property.
The purpose of our interim management and turnaround services is to provide an experienced executive at short notice to bridge the management gap; somebody to pick up the reins of your China business and help put it back on the path to efficiency and profitability.
We have a pool of senior executives available with many years of experience in challenging management situations.
Reconnecting the Dots
Our interim managers will quickly identify improvements, develop a turnaround plan, quantify the intended results and set clear deadlines and deliverables. They will make improved cash flow an overriding priority and identify unused assets that we can quickly help to realise. In addition they will provide strong support for ongoing strategic development.
These managers will seek to inhibit unsustainable margins and ensure best practice by renegotiating prices based on industry benchmarks and restructuring terms of business to provide incentives for all sides and to stimulate competitiveness.
We will take action to improve employee morale by communicating a concrete plan with clear timelines attached to gradually bring the company back on to a winning path. After calming the storm, the interim manager will step back and will hand a healthier or substantially improved operation back to our clients.
A typical turnaround assignment may last three to six months. Upon completion, the interim manager will provide a comprehensive report including description of the actions and initiatives undertaken, analysis of results, recommendations for further actions and suggested useful external contacts (e.g. suppliers, distributors, service providers, government entities, etc).
Advantages of Interim Managers
- No long lead times
- No termination formalities
- Highly qualified with tremendous experience
- Results driven
- Transfer skills and contact networks to your team
- Untouched by internal politics
- Fresh ideas for old problems
Special Projects
In addition to troubleshooting situations, our interim managers can conduct or conclude specific projects where our clients lack the capability internally. The range includes interim financial management, acquisitions, post-acquisition integrations, divestments, setting up a sourcing organisation, relocating factory operations, implementing new technology solutions and risk management systems.
The roles undertaken by interim managers are diverse and include a spectrum of assignments ranging from general management, change management, financial management, supply chain and procurement management, sales and distribution, and human resources management.
Case Studies
Cable Manufacturer: Timeline six months
The China manufacturing subsidiary of a multinational cable maker ran into low profitability and received a series of emails accusing its sales director of fraud. An interim manager was inserted into the vacant CFO slot with a mandate to investigate and turn things around. He led a series of internal audits with third-party support, engaged internal investigators to probe the sales chain, and obtained proof that the sales director was controlling the local GM through blackmail and was defrauding the firm through kickback schemes and the insertion of family firms into the distribution chain. With head office backing the interim CFO terminated the gang of corrupt executives, recruited a new team and returned the operation to profitability within six months.
Electrical Appliances Sales: Timeline three months
The China manufacturing subsidiary of a multinational cable maker ran into low profitability and received a series of emails accusing its sales director of fraud. An interim manager was inserted into the vacant CFO slot with a mandate to investigate and turn things around. He led a series of internal audits with third-party support, engaged internal investigators to probe the sales chain, and obtained proof that the sales director was controlling the local GM through blackmail and was defrauding the firm through kickback schemes and the insertion of family firms into the distribution chain. With head office backing the interim CFO terminated the gang of corrupt executives, recruited a new team and returned the operation to profitability within six months.
Packaging Manufacturer: Timeline: four months
An interim manager optimised the distribution footprint of an electrical appliances maker’s China operations within three months based on a detailed analysis of 29 provinces and 2,000 outlets. He consolidated the footprint to 14 provinces and 1,200 outlets bringing increased efficiency. As a result the company was able to reduce its sales force from around 350 people to around 250 and to redeploy its scarce marketing resources in a more targeted manner while keeping the sales force motivated and focused during a time of extensive organisational change.
Connection with Other Services
Our interim management and turnaround services dovetail with our holistic suite of risk management and operational consulting services which assist our clients to avoid the pitfalls of investing and operating in China, or to emerge from trouble in better shape.
• High-end due diligence for new investments • Special project accounting and compliance audits • Distribution system investigations and operations reviews • Procurement system investigations and operations reviews
