Situation

A prestigious French multinational conglomerate, renowned for its expertise in design, manufacture and distribution of advanced material handling solutions, found itself facing a significant challenge with its Portuguese subsidiary. ‘s underperformance. This subsidiary was expected to be a strategic asset contributing to the network of the parent company. However, it was falling short of expectations, turning in unprofitable financial reports, and becoming a concern that demanded immediate attention.

Challenges:

• Turn from an underperforming unit to a profitable and integral part of the multinational conglomerate.
• Ensure the continuity and accuracy of the company’s reporting activities in the immediate future.
• Improve communication, promoting collaboration, and recognizing individual and team achievements.
• Identifying the most effective strategies to reduce the company’s cost base.
• Locate inefficiencies and redundancies that could be eliminated or optimized, without compromising the quality of the products or services delivered.
• Review credit policies and implement more stringent control measures to ensure the financial health of the company while maintaining good client relationships.

Action

A seasoned senior interim director was brought on board, armed with a career trajectory that spanned national and international companies and featured significant accomplishments in managing food and trading businesses. This individual was not just a leader; he was a catalyst for change, possessing the kind of expertise and experience the company desperately needed at this pivotal juncture. In essence, this senior interim director was an invaluable addition to the company, bringing the much-needed expertise and leadership skills required to steer the organization towards a better future. His mission signaled the beginning of a new chapter for the company, one filled with potential for growth and profitability.

Results

The interim CFO joined the company and committed several months to ushering in a new era of financial management. During the initial stages, he focused his efforts on enhancing financial reporting processes and re-evaluating client credit policies, all with the aim of mitigating the company’s spiraling finance costs. This exercise involved a meticulous review of financial statements, streamlining reporting mechanisms, and implementing rigorous credit control measures.

Beyond these financial and operational achievements, the interim CFO also played an instrumental role in shaping the company’s future. Working closely with the board of directors, he evaluated the long-term plans of the company, ensuring they were in line with the group’s overall strategy. By doing so, he helped the company to align its operational goals with strategic objectives, setting the stage for sustained growth and profitability in the future. This comprehensive, strategic approach demonstrates the indispensable role an interim CFO can play in a company’s financial turnaround and long-term success.