In the previous three years several management consultants and advisors were brought in to solve the company's problems. None were able to help. This information was provided by a CPA friend of Consoli's as he explained that the owners wanted him to get involved.
“Sounds like they need new management Henry, not another management consultant or advisor.”
After a number of serious discussions he joined the company as COO and EVP. The company was doing $30 million, a year, had 300 employees, and manufactured parts for the first tier suppliers of the auto industry. It had lost money three years in a row and would lose close to $ 2 million more that year.
There was no business strategy, management team, business plan, or vision for the future and the problems were getting worse. Only the management consultants and advisors had dared tell the owner - who also functioned as president, chief engineer, and production manager - that he was the problem.
This was Consoli's biggest work-out and the first where he did not have total control. His only leverage was that he worked for the Board of Directors - not the majority owner - that was clearly stated in his contract.
Within a month he created an organization chart, put names in the boxes, assigned responsibilties and delegated the appropriate authority. He then worked with each manager to design reports to provide meaningful information and developed systems to gather the data. When the owner saw his control diminish he reversed everything that had been done. The inevitable confrontation occurred.
"If you won't let me fix the problems the company will go out of business. The bank will force you into bankruptcy."
"Find a buyer, sell the company." Came the reply.
"Without an effective organization, a business plan, and evidence that the problems have been solved all you have is a collection of assets worth less than what you owe the bank. Each management consultant and advisor you brought in told you you have to fire yourself."
Consoli knew that when that happened the right person could be brought on board, the production problems would be solved and the company would have a chance to get back to its former level of success.
Unfortunately the individual wouldn't fire himself.
Dr. Jim Collins wrote an excellent book - “Good to Great.” One of the main points he makes is that good companies become great in part because the management gets the:
wrong people off the bus,
right people on the bus, and in the right seats on the bus.
And then management lets them pull, push, shove, and otherwise move the bus down the right road.
Management is cause - everything else is the result.
