Activity: Manufacturing

Size: Large Company

Job type: Family Strategic Management Process, Strategic Planning Process and High Performance Sales Program “Maximizing Value”.

INITIAL SITUATION

Since 2002 the company began the process of management succession from the second to the third generation. With this process Mr. Orlando Ortiz became the Chair of the Board and his son, Mr. Enrique Ortiz, became General Manager of the company. Although he had the best intentions of all involved, in early 2006 the succession had not been concluded, mainly due to an overlap of functions between the Chairman of the Board and General Management.

In addition, the company had a weak capacity of execution of the plans that had been established at a level of about 50% execution and results that did not meet expectations or the potential of the company.

On the other hand, the company had been feeling the need for a major change at the level of organizational culture and strategic direction of the company, in order to project successfully and ensure the permanence of the organization in the future. This need originated on the basis of important changes in recent years that had been halfway or were not effectively implemented.

RESULTS

Since it began working with CAUAC the following results and benefits are evident:

  • Family succession process successfully carried out and completed. The Chairman of the Board assumed its role and overlapped functions with the General Manager disappeared.
  • Strengthening of execution implementation capacity plans, reaching a level of 100% so far this year.
  • Increased sales in 2007 of 34% compared to 22% budgeted.
  • Significant increase in productivity and quality between the first quarter and the fourth quarter of 2007, which was reflected in a reduction in the cost of sales of 15% and an increase in operating profit of 129%, through 3 key factors:
  • Increase Kg / hour production man.
  • Reduction in the percentage of waste.
  • Reduction in the percentage of salable nonconforming product.
  • Focus and strategic alignment of employees and reorganization of the company processes.
  • Optimization of investment in education and training.
  • Increased relevance and use of Information and Communications Technologies (ICT) to support the business.
  • Strengthening innovation in the organization.
  • The level of motivation and commitment of all employees increased significantly.
TESTIMONIALS

“From my role, this experience has been rewarding because it has raised new concerns that have led me to have a broader and challenging vision of what we can become as an organization. I’ve moved on from thinking about developing leaders in the organization to thinking of an organization operating in a different way where leaders have a key role. This experience has strongly fueled my desire to continue taking a leadership style focused on people with a high sense of accomplishment and projecting the organization to a business model that goes beyond the traditional scheme. ”

Enrique Ortiz

General Manager

Exiplast S.A.

OTHER SUCCESS STORIES