2nd Generation

The SCA Group was asked to assist with a confidential engagement in order to provide a comprehensive review of the company’s organizational effectiveness, policies, procedures and IT support. This was after the founders of the company, a $100 million multinational manufacturer and distributor of fabrics and furnishings, had stepped down in order to retire from this family business and promoted two children as co-presidents

CASE DESCRIPTION

 

Although the founders’ son and daughter had worked in the company’s domestic and international sales departments, neither had deep experience in operations or general management. The founders had hoped that they would eventually grow into their new positions, if they received continuous coaching and daily monitoring.
The management desired to have an independent review of its policies and practices in sales, order entry, customer service, fulfillment and warehousing. Therefore, SCA Group founding partner, Dan Stansky was engaged to provide a skillful and thorough analysis and review of the business operations.

 

What Stansky found was a highly dysfunctional and broken organization, facing multiple logistical and procedural issues, all of which were causing their sluggish growth.

    • New sales support departments, established by the co-presidents, lacked effective team leadership and organization. The new teams were also poorly supported by senior management, lacked organization, and were not open to procedural change.
    • High gross margins masked the inefficiency of the sales support organization.
    • The founders were clearly unsupportive of the co-presidents reorganizations, yet were unwilling to force a reversion to the prior sales support structure they had nurtured for over thirty years.
    • Finally, the new management was unwilling to standardize processes for the sales support team, or create financial statements below the company consolidation.

Stansky recognized that this multinational company urgently needed improved team leadership, better organization and streamlined communication.

 

In order to first facilitate better communication, Stansky required all teams within the company to map their processes during team meetings, all led by Stansky himself. From these comprehensive meetings and meticulous maps, Stansky was able to identify non-value added actions and organizational conflicts. A thorough evaluation of the procedural maps also allowed Stansky to identify credible and practical ways to standardize processes, improve team leadership, and increase IT support operations.
Stansky presented his findings to the company’s management along with several comprehensive and knowledgeable recommendations for process, IT and management improvements.

 

The company’s founders accepted Stansky’s recommendations for team leadership changes and some process improvements, which resulted in increased support from senior management and improved communication across the board.

CASE DETAILS

Company:

 

Confidential


Industry:

 

Manufacturing


Loan Type:

 


Amount:

 


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