We enable middle market businesses to choose a more strategic and financially rewarding path to growth.
After a chance introduction, KGK was retained by an $18M Tool & Dye Manufacturer, now a 2nd generation family business which managed to survive the exodus of the industry to China. Their superior quality engineering and reputation, coupled with a willingness to cut prices kept the business running. We agreed to examine where the lowest hanging fruit for improvement was, as
It took us just one full week onsite to completely understand all of his business problems. We were alarmed by a number of findings affecting profits, revenue, and simple survivability. A few of the most pressing problems were:
There was an urgency to fix the business and we put a team of experts together to work on all operational and manufacturing disconnects. The proposed team would comprise two works streams to drive quick results:
While uncovering their “Rubik’s cube” of inefficiency was rather easy, “fixing” it required changes to every moving part of the company. Six months after project completion, the entire company was operating from the new ERP platform, with a nice by-product being team cohesiveness, understanding of company objectives, and breakdown of counterproductive work silos.
Measuring results at this 6-month milestone, we found:
We strongly recommended the owner hire a new COO, with acknowledged expertise in manufacturing companies. We were asked to write the new job description, vet candidates, and made 4 recommendations to the owner for interview. Note: he could now more easily manage the new headcount from savings, particularly labor costs.
The business’s turnaround made the owner a happy man, further enjoying his liberation from the minutiae, and investing more of his time in growing (rather than saving) his company. Most importantly to him was that the 3rd generation of family ownership was at the company, and the business was in far greater shape to hand off over the coming years.
The owner saw a 2.2% profit on continuing operations, and started taking a salary. Further, with the business’s turnaround, he now enjoys spending his time growing (rather than saving) his 2nd generation family business.