From Turnaround Crisis to Return on Capital Of 20% in under Two Years
A $150 million business had breakeven operating profit and declining market share in a recessionary market raising questions about viability of the company. The company had $90 million in capital employed.
A five-month team effort across the business reduced SKUs by 50%, shifted production to the most productive plants and added sales coverage to underserved geographies.
160 operational and revenue enhancement initiatives led to $12 million in operating profit within 24 months in this highly competitive industry. Capital employed was reduced to $60 million, increasing ROCE to 20%.