Company Turnaround

Bakery returns to profitability with the help of an interim

Company turnaround from declining profits and low staff morale is a challenge that many organisations find difficult to achieve from within. The bakery division of a large food company was no exception.

The company needed to improve profitability, implement a £1.6 million investment programme and enhance customer service levels, at a time when morale was at an all-time low.

An interim manager was appointed who met the key criteria of seniority, proven track record and hands-on experience. He was previously manufacturing director of another large bakery in the same area of the country and knew its people and the relevant trade union.
The need for a team

One of the bakery's main problems was its site, which was split for production, process and packing. This meant that each factory unit operated autonomously, rather than working as a team. The directors had clear goals and a timetable of what needed to be achieved for successful company turnaround.

Confidence grew quickly as the interim started work and staff could see the focus on team building. With a new system of accountability in the factory, waste was reduced and morale raised. Meetings were arranged with the trade union and a relationship was built up between the more relaxed, listening management and the workforce. This has resulted in a joint approach to resolving problems, and increased profitability and production levels.

The priorities of the company turnaround were: to restore morale among management and the workforce, ensure customer service was improved, successfully manage day-to-day operations throughout the critical period of the capital project and return the factory to profitability.