ADA is a leading Austrian manufacturer of beds, upholstered furniture, slatted frames, and mattresses. The company derives its name from its founder and place of origin (“Alois Derler Anger”).
In addition to a wide range of white-label products for large-scale retailers and furniture stores, ADA also develops and produces for its own brand, ADA – Mindful Living. Furthermore, the company operates a contract business under the brand Symphonic, which focusses on high-end hospitality.
ADA has five production sites in Central Europe, specifically in Styria (Anger), Hungary (Körmend, Nova, Zalaegerszeg), and Romania (Salonta).
In 2023, the ADA Group achieved a turnover of € 143.7 million and employed 2,058 staff members.
The Project:
After experiencing prosperous years during the COVID-19 pandemic (characterised by the “Neo-Biedermeier” trend and a retreat to private living spaces), the furniture retail sector faced a significant downturn in sales in 2023. This had a negative impact on the furniture producer’s financial results.
Against this backdrop, Management Factory was invited to collaborate with ADA’s management in designing and implementing a programme of operational improvement measures, with a particular focus on overhead areas. The objective: to sustainably improve the financial performance of the entire ADA Group.
The implemented workstreams included numerous efficiency enhancement measures (under the tagline “One ADA,” encompassing the processual and organisational realignment of back-office sales, development, and the Symphonic division across countries), initiatives to increase transparency (e.g., standardising cost calculations across all sites and introducing unified volume reporting), a new lean organisational structure (with significantly fewer management positions overall), and a detailed analysis of the Anger production site.
Highlights:
Analysis: Comprehensive screening of the company’s overhead functions across all sites and countries. Insights were presented in concise, decision-ready reports for the board of directors and supervisory board.
Potential: Approval of a programme aimed at achieving € 3.1 million in profit improvements and a decision to reduce the footprint of the Anger site by consolidating production into a single production hall.
Measures: Development of detailed workstreams in collaboration with the management team, documented in a dedicated project management tool.
Measure Tracking: Quarterly reporting to the board of directors on implementation progress, along with coaching and serving as sparring partners for the executives responsible for execution.
