A manufacturing company — taking on large jobs that it could not handle — was expanding and had found itself in dire straits. There was no receivables management system in place that was strong enough to deal with larger jobs and no project management system or experience to support larger jobs. This, coupled with a lack of proper inventory and warehouse management control and no proper financial control or reporting, was exposing the company to major cash flow problems and potential bankruptcy. Because there was no established, formal HR process, the company was at risk of losing critical skilled trades people and was vulnerable to Union intervention into a non-Union company. Profit was also suffering due to a lack of sales approach and management.

The owners were suffering from high levels of stress and were exposed to bankruptcy in several areas. Poor process around dispatch and execution of work, as well as a lack of management control were damaging the company’s brand. There was a high level of dissatisfaction in the work force and any potential flexibility and control was endangered by the threat of Union intervention.

While these issues may have seemed insurmountable, PACE was able to treble the company’s profit in 14 months, restored their reputation and helped them remain Union free. First, we established a proper inventory and warehouse management system. We then put in place a critical HR program — including performance management, progressive discipline, compensation review and key employee relations initiatives — and problem staff and management were replaced. A functional financial management process was set up with robust receivables and cash flow monitoring, policy and process. A bank management plan was implemented to manage the relationship and protect the operating line of credit and a project management process established that fully supported larger jobs. A business development and client relationship management process was also created in order to develop a pipeline of work and secure the future.

The project management system helped drive the profitable completion of work and the bank line has increased to support larger receivables. The owner’s stress has greatly reduced and the company is now on a safe growth track.