$280MM Industrial Building Manufacturing & Construction

Understanding how to manage the complex relationship and decision-making structures inherent in multiply family ownership businesses.

GOAL: Quickly return company to historic levels of profitability and establish changes required for sustaining growth.

Situation

  • Multiple family ownership structure with one Board member representing each of three family groups, plus an outside CEO. Confrontational family relationships
  • Seven years of declining profits, including the only year of loss in the company’s 100-year history.
  • Board of Directors not aligned around a plan to fix declining profitability, paralyzed and unable to take action.
  • On time delivery issues threatening customer relationships and premier brand status in the market.

FortéONE Process

FortéOne presented a Business Assessment including a “Roadmap to profitability” following a diagnostic review. The Board rallied around the plan and aligned to move forward with a common vision. FortéOne worked with this company and its owners to return the business to profitability and establish processes throughout to sustain high quality growth and improved margins.

Establishing a Foundation for Performance

  • Differing opinions within the Board challenged the team’s ability to ensure consistent focus on the end goal of improving profitability. The project was kept on track through clear and honest communication about the underlying issues and course-correcting as needed to achieve balance amongst all stakeholders.
  • Augmenting the day-to-day management group with a “change leadership team” provided the Board with confidence in the ability to drive change in the company and increase ongoing performance.

Results

  • In year one, achieved 75% of historic profitability, following seven years of decline
  • In year three, achieved record breaking profit of $23MM (from a loss three years prior)