A strategic sounding board for business leaders

The situation

A medium-sized manufacturer of industrial automation components with 75 employees was led by a driven business manager who had built the company into a player with international customers in 15 years. Despite the success, the entrepreneur increasingly experienced running from one challenge to another without making structural progress. Some product lines performed exceptionally well while others lagged behind. At the same time, there was an increasing turnover of staff, especially in key positions, and a coherent long-term strategy remained absent.

The challenge

The business leader faced several challenges simultaneously:

• There was a continuous lack of time to work structurally on operations
• There was insufficient understanding of which problems needed to be prioritized
• Talented employees were leaving the company due to lack of clear growth paths
• Successful product lines masked problems in other business units
• A sparring partner to evaluate strategic decisions with was missing
• Day-to-day operations took up all attention, hindering strategic planning

Our approach

1. Prioritization of challenges

CNIP began with a thorough review to clearly identify the situation:

• Company-wide analysis: We conducted in-depth interviews with key people from all departments to identify bottlenecks and determined which problems were symptoms and which were causes.
• Personnel and culture analysis: We conducted a baseline measurement of employee satisfaction and identified the underlying reasons for employee turnover.
• Product portfolio analysis: We assessed the profitability and future potential of each product line and their interdependencies.
• Organizational structure evaluation: We analyzed how decision-making took place and where lines of communication were obstructed.

2. Development of a structured roadmap

Based on the prioritization, CNIP developed a roadmap:

• Organizational restructuring: Introduction of a more delegated decision-making structure to relieve the case manager.
• Talent management: Development of a retention strategy with clear career paths and skill development.
• Product line strategy: Determined which product lines needed to be expanded, maintained or phased out.
• Process optimization: Streamline core processes to increase efficiency and ensure consistency.

3. Guidance as a strategic sounding board

CNIP remained involved as a strategic sounding board:

• Regular strategy sessions: Fortnightly sessions with the business manager to discuss progress and address new challenges.
• Coaching of the management team: Guidance in developing leadership skills to take on more responsibility.
• Implementation support: Practical assistance in implementing the identified improvements.
• Measurement tools: Development of dashboards to measure progress and adjust as needed.

The result

Through the systematic approach and regular sounding board, the entrepreneur regained control of his business:

• The decision-making structure was optimized, giving the business manager more strategic space
• Staff turnover dropped significantly through improved communication and clear development opportunities
• Unprofitable product lines were phased out or repositioned, improving overall profitability
• A culture of transparency and accountability emerged within the management team
• The entrepreneur experienced less stress and more satisfaction due to the renewed focus on strategic direction

The company now operates with a clear structure and strategy, allowing the business owner to focus on the essentials rather than constantly putting out fires. Through CNIP's regular sounding board function, potential problems are identified early and addressed before they grow into crises. This ensures more sustainable business operations and a better work-life balance for the entrepreneur.