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DUKE&KAY LED THE REORGANIZATION OF THE SUBSIDIARY OF A GROUP IN THE CONSTRUCTION SECTOR, BRINGING IT BACK AMONG THE MARKET LEADERS

Situation

Leading multinational group in the construction sector with a total turnover of 400M€.

Because of the global economic recession and the crisis in the building industry, one of the Group’s subsidiary complained for really poor results.

In the last few years, they suffered a sharp reduction in sales and no attempt was made to recover efficiency. The Owners were ready to liquidate or dismiss the subsidiary.

Duke&Kay activity

As last chance, the shareholders decided to ask Duke&Kay to redesign the internal organization of the company and its business model.

One of Duke&Kay HR Partners, expert in Union’s relationship, was since the beginning involved in the project and she immediately realized a new business approach was needed. So as a consequence:

To fast achieve the goal a new (interim) CEO with a solid commercial background, a Sales Director and 2 Sales Managers have been hired.

The industrial organization showed important bugs as far as the technical area, therefore we selected a Structural Engineer, who came onboard in short term.

Additionally, a new CFO and a Controller (focused on order management) have been hired to support the above Team and one of Duke&Kay Partner has been appointed for the sales force training.

The HR Partner supported the company to optimize the Personnel compensation policy and to review all related contracts.

Results

The reorganization plan lasted 2 years but quickly (initial 6-9 months) showed astonishing results in any business areas: sales strategy, effective order management, technical area and R&D department.

All the actions carried out brought the previous Net loss of -4M€ to a positive Net earnings of 2,4M€

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