EBITDA increases 70%
12% reduction in total headcount
Strategic Intent
Restructure the company’s recently acquired U.S. subsidiary to substantially improve disappointing overall performance and increase bottom-line profit contributions
Situation
- European-based global producer of lime and lime products
- Worldwide revenues up six-fold through acquisitions
- Recent U.S. acquisition with 15 separate facilities is by far the largest and most critical
- Demand flat with little forecasted market growth
- Revenue growth must come from increased market share
- U.S. EBITDA had deteriorated over past two years
Issues and Barriers
- Individual facilities have a “silo” mentality and are not assimilated into corporate culture.
- Electronic management system fails to deliver results.
- Structure varies widely from region to region.
- No uniformity of processes from plant to plant
- Reactive maintenance practices lead to poor quality and reduced “up-time.”
- Planning and scheduling processes do not focus on full resource utilization.
- Goals and priorities not consistently understood
Key Implementations
- Create expert models and identify best practices
- Define and translate management goals and priorities to all facilities
- Create capacity models for each facility
- Redesign and implement all core processes
- Install new maintenance scheduling system
- Link goals and performance expectations to rewards
- Develop new organizational structure in support of the business model
Results
As a result of engagement, new systems and culture drive control and lead to sustainability of improvements demonstrated by continual increase in EBITDA, up 159% after the end of the project.
The implementation stage yields the following major improvements:
- EBITDA increases 70%
- 12% reduction in total headcount
- Variable costs reduction of 6.4%
Client Perspective
I have found Brooks’ help invaluable in accelerating the attainment of our objectives. I am pleased to recommend their services to any organization that is seeking to fully implement strategic and/or tactical change.
— Chief Executive Officer
