Traditional Swiss manufacturing companies are increasingly facing competition from Asia that often gains market share through aggressive pricing strategies. When sales are stagnate and new business declines, strategic rethinking is required. A promising solution is transforming from a pure manufacturer into a service-oriented partner.
How such a transformation can succeed is shown by a recent assignment of one of our interim managers. This manager was engaged by a niche market leader in the wood products industry. After years of dominance, the company faced a stagnating market and increasing pressure from Chinese competitors. The solution? It was not simply a matter of restructuring, but rather an ambitious growth strategy: transforming into a service-oriented company.
When the proven model reaches its limits
With over 1,000 machines installed worldwide, the company has an impressive basis. However, the business based on new equipment was shrinking. The management, thinking over the long term, recognized that the chance for future is to provide production services for these machines. Previous attempts to initiate major changes had failed. At this point, Top Fifty became the chance to bring in an experienced interim manager as Head of Strategic Projects and a member of the executive board. His assignment was: to develop and launch a strategy that would transform the company from a machine manufacturer into a service provider.
From vision to implemetation
For such a transformation, it is essential to inspire and mobilize the organization for change. To achieve this, our interim manager followed a clear and multi-level approach:
1. Beeing a good listener and realizing the potential
«I began the process by listening closely and recognized the company as the raw diamond. The machine manufacturer had a solid technical basis and a management team that worked well together and was open to change.» But where was the problem? «Courage and a powerful impulse to action was still needed in order to create an ambitious vision through innovation and to consistently tackle the necessary transformation.»
2. Strategy for growth instaed of mere restructuring
The focus on growth was a decisive change in paradigm. Instead of only cutting costs and preserving existing business, an inspiring vision was developed. The company has an unique process know-how and enjoys great trust from its global customers. By consistently aligning with customers’ goals during operation and on the basis of data-driven technologies, the clear aim was: unlock the full productivity and quality potential for customers in a sustainable way. Remote access also enables the expansion of conventional service and more interactive communication with customers. This to secure the implementation of the new growth strategy by increasing the existing business.
3. Agile methods for a dynamic implemetation
To implement the strategy, our interim manager chose an agile approach based on the OKR framework (Objectives and Key Results). This approach made it possible to involve the entire organization in the process. Instead of rigid, multi-year plans, they had clear objectives, reviewed in short intervals. This created transparency, encouraged each team members responsibility, and enabled them to respond quickly to new findings and challenges.
The Interim Manager in a catalyst role
Why did the transformation succeed this time? The role of the interim manager was a key factor. On the one hand, as an external expert who demonstrated “skin in the game,” and on the other, as an interim manager who took over operational leadership in phase two. In doing so, he received the full support and trust of the owner and CEO. From this basis it was possible to make and assert necessary and even unpopular decisions.
When the vision becomes reality
The management’s feedback was consistently positive. They confirmed that this transformation would not have been possible without the external support of the interim manager. There were also some polarizing opinions—a typical sign of profound change when established routines are challenged. The fundamental confirmation came from two sides:
1. From the customers. They confirmed that their needs for expanded services were clearly recognized. The market was therefore ready for the new offers.
2. From the employeers. «My personal highlight was the ‹John-F.-Kennedy-Moment›, when a cleaning staff member passionately explained the new mission. That showed me how deeply the vision was anchored within the organization.
Transformation as an opportunity for Swiss Industry
The case of this Swiss machine manufacturer is exemplary for many swiss companies in similar situations. It shows that market stagnation and international competitive pressure do not mean the end. Rather, they can be the trigger for a strategic realignment that opens up new growth opportunities. Are you in a similar situation? We are happy to support you. Our interim managers are ready to accompany you professionally.
Contact us and start your successful transformation today:
office@top50interim.com or +41 (0)41 412 02 02.
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