05.
Carve-Out and Relocation of production assets
Scope, Size of Assignment
FTE 20, revenue around 14 M€
approximately 8000 sqm
OUR SERVICES
CHALLENGE
Within a larger conglomerate, it was decided to close a production facility. Within this facility was a profitable part that was carved out and moved to another facility through "carve-out."
A part of the facility receiving the carved-out production had to be decommissioned to make room for the new part. Motivating, explaining, and anchoring the decision in both facilities while reducing staff and recruiting new personnel. Maintaining production and creating space for supporting production to deliver according to delivery plans. Cost and time budget.
LESSON
When there is a smaller number of affected personnel, it becomes more personal and harder emotionally to carry out reductions in staff. A well-thought-out plan is required, what we want to achieve, why, and how it will be done, as well as true leadership. A clear example of when a leader benefits from external support to manage change processes.
Forcing middle managers to "kill their darlings" under time pressure is a painful process where, as a leader, you sometimes have to push changes even if the anchoring process is not fully carried out.
Controversial in Sweden but everyday in countries like Germany or the Netherlands.
