Phone: 717-762-0720





Case Study

Who: A leading manufacturer of fluorescent light fixtures

Problem: Both revenues and profits had significantly fallen due to lack of cost competitiveness and poor pricing strategy. The organization showed very little teamwork with no evidence of cross-functional problem solving. At no point had the organization embraced Lean Manufacturing principles. The firm had no marketing or operations plan. The Sales Manager had no relationships with the independent representatives that sold for the company. The CEO of the firm was nearing retirement and felt his two potential successors were unprepared to run the firm.

Solution: Praestar Consulting was contracted to supply an interim CEO to the firm for a six month turnaround. After conducting an intense organizational assessment, Praestar terminated the Sales Manager, interviewed replacement candidates, selected and trained a new Sales Manager. Praestar formed company-wide Task Forces within the organization to address several key operating problems (inventory, lean manufacturing, quality, and Management Council). Additionally, town-hall meetings w3ere held monthly with all company personnel. Processes within the firm were formalized and improved. The two potential successors were intensely trained in all aspects of business administration on a biweekly basis. Operating, Marketing, and Business plans were written. Praestar supplied tactical execution guidance to the Management team for a smooth handoff at the end of the six month period.

Benefits: Client employees performed as teams, gained significant continuous improvement culture, and successfully increased both revenue and profits for the firm. Market share was increased dramatically due to faster response times in production, competitive pricing (which was made possible due to improved cost management), and better production quality. CEO’s successors were deemed ready to take over the firm when CEO retires.