Interim Finance Director

26/03/2008

This manufacturer’s head office team had lost faith in its Danish subsidiary. The operation based in Denmark was repeatedly failing to achieve targets and its financial planning was poor.

The company's plant and equipment were outdated and poorly maintained, it had unique information systems and its domestic market had recently been entered by a new, low-cost, high-volume competitor. The manufacturer sought an interim management executive to take on a troubleshooting role – bringing the Danish business into sufficient shape that it could be used strategically. Alium selected an interim Finance Director with a strong manufacturing background. He provided a neutral, objective assessment of the issues facing both sides, brokering an agreement on what each could achieve in the short term, and monitoring performance against these commitments.

The interim management executive's commitments included release of funding by the client for specific manufacturing process improvements and for financial systems upgrading; by the subsidiary, a strategic review of key customers and markets, more rigorous production and purchasing controls and the hiring of a new Finance Director.

The interim assignment ended after 5 months, as the subsidiary stopped reporting losses every month and began to generate cash again. The board was then able to prepare the business for a successful sale a year later.