COMPANY OVERVIEW
Founded in 1930, this firm offers design and planning services in the fields of mechanical, electrical, plumbing and fire-protection engineering. It is one of the finest engineering firms in its class based on the quality of their work and staff.
LEVEL OF INVOLVEMENT
Chairman's View was hired in the summer of 2005 for a standard 3-month engagement to help the firm's partners identify the changes necessary to strengthen the company's value and achieve their goals.
INITIAL CHAIRMAN IMPRESSION
Despite quality services, talent and reputation, the company lacks a clear corporate structure and the ability to capture the value of its vision for the future. This is due, in large part, to a culture of camaraderie and communal decision-making, which has weakened leadership, compromised direction and accountability, and hindered growth. Matters involving the day-to-day operations of the firm have also diluted its leadership's ability to grow the company in new and complementary ways.
Their quality services, talent and reputation are relied on heavily to feed continual business and have pulled them out of the recent economic downturn in fairly good shape. However, in order for the company to achieve significant growth and capture that value, managerial duties must be rationally delegated and embraced, new ventures must be screened and aggressively pursued when appropriate, and a new corporate structure - and culture - must emerge to facilitate growth and accountability.
COMPANY & OWNER GOALS
1. Install a stronger management structure and process to institutionalize accountability.
2. Install a new corporate structure to pursue new ventures and facilitate profitable growth.
3. Build the value of the Company going forward for the benefit of all owners.
COURSE OF ACTION
Please contact Chairman's View for a detailed "Course of Action" for this case study.
RESULTS
Chairman's View presented to the firm's principals at the end of the engagement. The CEO wholeheartedly embraced the recommendations but was not able to push through a second phase to guarantee implementation. The follow thru process fell victim to a weak corporate structure that did not
support giving him the authority to lead the principals. This was a key problem CV identified during its engagement. CV still provides advice to the CEO with respect to implementing a performance dashboard and on various operational and structural matters.
The owners have implemented a new outside Board of Directors, which was the CEO's number one objective. He believes that this step will lead to the cultural change he knows is necessary for the firm to prosper over the following decades. As he said the first 75 years we were lose set of partners building little or no value for our future, the next 75 we must become a real business to succeed and prosper.
At this stage CV is standing by. If the partners are unable to institute the action plan over the following months the CEO intends to bring CV back to execute.
