The Client:

Kremsmüller is one of Austria’s largest industrial plant manufacturers with numerous sites and subsidiaries in Austria, Germany and Romania. The family-owned group employs around 500 temporary workers in addition to its own workforce of around 1,800 and generated consolidated sales of € 268 million with its service business (54%) and project business (46%) in the 2018 financial year.

After a strong expansion phase in 2008 – 2013, business volumes declined in 2017. Overhead and pre-financing costs were high, and the company’s structures and processes were not designed for further growth. Therefore, in the course of an upcoming generational handover, the Kremsmüller family decided to fundamentally restructure the company and commissioned Management Factory to do so.

The Project:

Management Factory drew up a restructuring plan together with the owner in the fourth quarter of 2017. In 2018, Management Factory took over the newly created position of Commercial Manager on an interim basis, who, in addition to reorganizing the company, took over the operational management of the commercial departments (accounting, controlling, IT, HR, personnel scheduling, payroll, purchasing, facility management, magazine and car workshops). A second Management Factory manager strengthened the controlling department on an interim basis and was responsible for the conception and implementation of numerous instruments for corporate management. In November 2018, Management Factory was involved in the selection process for a new CEO and a new CFO. After a familiarization phase, the handover of operational agendas to the new management took place in March and April 2019.

Highlights:

  • Introduction of liquidity planning, DB accounting and KERF (short-term income statement)
  • New organizational structure with a separation of the service and project business
  • Introduction of jour-fixe routines
  • Sustainable reduction of overhead costs
  • New costing model incl. approval process
  • General comparison for a major project
  • Implementation of budgeting process, investment planning and forecasting
  • Return to profitability
  • Initiation of several projects for long-term organizational development (strategy, process optimization, employee development)

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