A small service parts division of a major tier 1 automotive supplier was in disarray. Employee turnover was high and morale, along with delivery performance, was low.
Not suprisingly, the budgeted P&L was not being achieved and promised improvements were missed over and over.
- The general manager was replaced by a trio of managers responsible for 1) Finance, 2) Sales, and 3) Operations. They immediately assessed the team and began operational improvements.
- The talent review made it quickly clear that there was a mis-match of peoples skills to the positions they held, and a bad apple or two.
- The operations manager was replaced and the plant manager was promoted to operations manager
- A new customer service rep, known for good performance and a real team player, was hired out of a different division within the company
- The materials manager was moved to a role in sales where his talent was a much better fit
- The quality manager was moved to materials management where she was a much better fit
- The purchasing clerk was groomed and coached, and eventually replaced the retiring purchasing manager
- Much more effort was put into the employee appraisal and development processes
- The business turned from a place known for being the spot where careers die out, to a spot known for development and learning, and high performance
- On-time delivery performance went from 40% to 95% when these organizational improvements were done in conjuction with operational improvements
- Financial performance improved dramatically