The Client:
- 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.
