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The local SME An Industrial Finisher, 6 regular employees. Turnover £250’000. Growing conflict between the partners on direction to take
Issues covered Troubleshooting Change Management Evaluation of Strategy versus Capabilities
Our approach: To look at what makes sense for the business, and then to determine the root cause of the dispute to propose a win:win solution for the partners.
By talking with the partners, working on the shop-floor alongside employees, meeting customers and observing processes and interactions, we were able to determine strengths and weaknesses in the business and to verify Partner B’s case for expansion. By further looking at the personal needs of the partners, we concluded that Partner A’s need for ’ the quiet life’ would best be served by buying him out of the company, leaving the younger and more ambitious Partner B to drive the business forward. Certain staff moves and incentives would have to be introduced to maintain reliability and loyalty of the workforce, and to address the changing role of Partner B. Expansion was constrained by the capacity to store Goods in/Goods out, but acquiring a collection/delivery van would address this and afford flexibility whilst alternative site arrangements could be explored. Rapid growth eventually led to the acquisition of a competitor.
Lesson: The conflict between the partners was not just about the business, but about their own personal needs. By making an independent assessment, we were able to verify the case for expansion and to draw attention to critical success factors which might otherwise have been overlooked, and which could later have surfaced to frustrate the business. Staff motivation was an issue, now mitigated by incentives so that they share in the venture’s incremental success. For the owner/managers, having an independent appraisal has eased their conscience, affording a rational business case where there was otherwise emotional argument. A win:win for everyone. |
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Case Study SME |
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Companywise Limited |
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“As owner/managers, it’s often hard to see the wood for the trees” |
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Companywise Limited |
