/ Factory Leadership Crisis Resolution
Industrial Mixers
Case Summary
Challenge
- Our client’s staff organized into a group against the CEO of the manufacturing unit. This group took over all operational & production decisions – excluding the CEO and kept him under office arrest. There was a leadership crisis at the company.
- They adopted a go-slow approach to production.
Services Provided
- We conducted a quick factory walk-through to understand the level of non-cooperation.
- We implemented a strategy to identify the trigger and resolve the impasse by doing full assessment:
1. Focus group meetings with the group, and other staff members to understand the events leading up to the lock-out and leadership crisis.
2. 1-0-1 interviews with top management in India, including the CEO.
3. Psychometric assessments for all top management
4. A quick study of sales and production process, to identify risk & losses involved with stalled production.
5. A review of documents, order intake and production schedule - We highlighted interventions for immediate, mid, and long-term.
- Helped the CEO to understand the situation, reviewed his performance and facilitated this resignation with immediate effect.
- Managed the recruitment and on-boarding of his replacement.
Delivered Value
- The client was able to restore plant operations within three days.
- The working committee immediately disbanded and direct participation of the Head Office team was re-established.
- The CEO was released within three days without any legal litigation.
- Production restarted, operational decisions and management returned to the hands of the HQ with tight control on the local management.
About the Client
The client is a prominent European company specializing in advanced mixing technology, offering a comprehensive range of machines, plants, and services. Their expertise lies in the processes of mixing, granulating/pelletizing, drying, and fine grinding. The company’s core competencies are centered around the preparation and handling of bulk materials, slurries, and sludges, making them a key player in the industrial sector.
Project Details
When a leadership crisis arose at the Indian subsidiary of a leading European manufacturer of mixing technology, the company faced significant operational disruptions. The staff organized against the CEO, excluding him from decision-making and slowing down production. This unusual situation required swift intervention to restore normal operations, resolve internal conflicts, and regain control of the manufacturing unit. Here’s how we addressed the crisis and helped the client quickly reestablish order and productivity.
Delivered Value
Restoration of Plant Operations in Just Three Days
The swift restoration of the manufacturing unit’s operations was a critical outcome. After addressing the leadership crisis and implementing immediate interventions, the plant was back to full operational capacity within three days. This minimized the disruption to production schedules, helping the client avoid significant financial losses from prolonged downtime.Dissolution of the Working Committee
The staff group that had seized operational control quickly disbanded after the intervention. By engaging the staff in focus group meetings and addressing the root causes of their dissatisfaction, we facilitated a resolution to the internal power struggle. This allowed the Head Office team to regain control and reestablish a smooth chain of command without further employee unrest.CEO Released Without Legal Litigation
One of the most sensitive aspects of the case was the CEO being kept under office arrest. Our careful handling of the situation, including focus group discussions, leadership assessments, and one-on-one interviews, allowed for the CEO’s release without the need for legal action. This was crucial in avoiding reputational damage and lengthy, expensive legal disputes for the client.Production Restarted and HQ Management Reinstated
With the leadership crisis resolved, production was able to restart swiftly. All operational decisions and management responsibilities were returned to the client’s headquarters, ensuring tight oversight over the local team and reducing the risk of future disruptions. The quick transition from local control back to HQ ensured that the company’s strategic vision and quality standards were fully reinstated.
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