A major construction company was facing major cash flow and morale problems, and had lost the trust of key customers. X-PM deployed a seasoned turnaround expert to contain the problem, which was threatening the stability of the parent organization.
A major Indian construction company, was facing major cash flow problems in their subsidiary in Singapore due to mismanagement.
Customer relationships had completely broken down because of a series of broken promises. Projects were not moving forward.
The staff was completely demoralized and the organization was hit with very high attrition.
The subsidiary was in financial distress, and this in turn was threatening the stability of the parent company in India.
To turn around the subsidiary, we deployed a highly reputed interim CEO with longstanding relationships with key customers.
The interim CEO took the following steps to turn around the company:
- Initiated the filing for judicial management for protection against law suits. As a result, a judicial manager was appointed to scrutinize the issuance of cheques.
- Took charge of pending projects and personally supervised their completion.
- Increased salaries to retain staff.
At the end of the six month assignment, the interim CEO had accomplished the following:
- Essentially completed all pending jobs, except for one, which had to be re-tendered.
- Collected money from buyers and avoided liquidation, without requiring injection of funds from parent organization.
- Restored staff morale.
- At the end of the six month assignment, the Client asked the interim CEO to stay on. However, the interim CEO declined due to other commitments.