Turning an Underperforming International Site Into a Profitable, Scalable Operation Ahead of Exit

Context

A PE-backed industrial manufacturer was preparing for an ownership change. One of its international sites in France, acquired several years earlier, remained structurally unprofitable and increasingly misaligned with Group expectations. Operational volatility, inconsistent quality, and people-related issues were eroding customer confidence and undermining the investment case.

I was appointed as Group Operations Director to determine whether the site could be recovered and, if viable, deliver the turnaround required to support the exit.

Challenge

The site’s problems were deep-rooted and multifaceted:

• High absence and churn, creating instability and staffing gaps across shifts.

• Elevated accident rates and weak H&S controls, posing immediate operational and legal risk.

• Quality inconsistency, driving high rework, claims, and reputational damage.

• Rigid production and planning processes unable to cope with a highly seasonal, volatile order profile — resulting in long lead times and unreliable service.

• Union resistance to essential flexibility agreements needed to manage fluctuating demand.

• Low accountability, minimal performance management, and fragmented leadership behaviours.

The site risked becoming a permanent drag on valuation unless stabilised quickly.

Approach

The turnaround focused on three priorities: restoring control, building capability, and reshaping the operating model to deliver sustainable profitability and scalability.

1. Re-establish Control & Reset Expectations

The immediate need was stability, discipline, and clarity.

• Introduced performance incentives and production bonuses to reward output, engagement, and quality.

• Rebuilt shopfloor discipline through strict H&S standards, housekeeping routines, and daily visual management.

• Conducted management audits to raise leadership visibility and tighten decision-making.

• Engaged the union leadership early, explaining the urgency and necessity of flexibility agreements to secure the site’s future.

• Rolled out production scorecards and performance metrics, creating transparent baselines for throughput and quality.

• Embedded leadership performance routines to close gaps quickly and establish real accountability.

  
  

Impact: The site moved from reactive firefighting to controlled, structured operations within weeks.

2. Strengthen Capability & Build Consistent Processes

With discipline restored, the focus shifted to competence and consistent execution.

• Implemented a factory process-control environment, including operator-led start-of-shift routines.

• Introduced process control charts to stabilise output and reduce variation.

• Established a preventive maintenance regime and structured cleaning routines to cut downtime.

• Rebuilt the Make-to-Order planning process, enabling flexibility around seasonality and order volatility.

• Delivered targeted operator training to improve accuracy, reduce rework, and raise first-time-right rates.

• Improved coordination across planning, production, and customer service to protect lead times and responsiveness.

Impact: Quality stabilised, rework declined, downtime fell, and production became more predictable.

3. Reshape Costs, Improve Flow & Unlock Scalability

The final focus was on strengthening cost structures, improving flow, and creating headroom for growth.

• Led strategic supplier negotiations to secure lower prices, better payment terms, and more reliable material availability.

• Introduced supplier service agreements to strengthen quality and lead-time discipline.

• Reduced inventory and strengthened working capital through improved planning and supplier consistency.

• Implemented JIT principles, cutting WIP and significantly reducing internal cycle times.

• Reduced rework, freeing capacity and shortening lead times.

• Improved service levels generated a virtuous cycle: more orders → higher volumes → higher fixed-cost absorption.

• Introduced a night shift to support increased demand and further improve overhead absorption.

Impact: The site gained flexibility, throughput capacity, and a materially improved cost base.

Results

Financial

• Gross profit increased from 30% to 45%.

• EBITDA moved from a significant loss to a 10% profit within 12 months.

  
  

Operational

• Significant reduction in rework, scrap, and downtime.

• Reliable lead times and markedly improved service levels.

• Lower inventories and stronger working capital.

• A scalable platform capable of managing seasonality and demand volatility.

People & Leadership

• Clearer accountability across leadership.

• Improved engagement supported by incentives and visible progress.

• Constructive union cooperation enabling essential flexibility.

Outcome

The site shifted from one of the Group’s most problematic assets to a reliable, profitable operation. The turnaround removed a major risk from the investment case and directly supported a successful exit, completed 18 months after the start of the transformation. The stronger operating model, cost base, and capability foundation continued to generate value long after the transaction.