Video Conversation with Fred Coon (View Below)
The answer: Quick action, creative problem-solving, innovation, motivating cross agency teams and plain old hard work by Ron Lacey.
In speaking with Ron Lacey recently, we were discussing a problem where his corporate leadership could not specifically identify causes for not achieving profitability. His CFO asked Ron to pinpoint where and how they were leaking profitability.
As Ron told me, “In analyzing the scope of the problems, I found that the centralized reporting structure did not allow for a deep-dive, analysis, any comprehensive understanding of the company by product line, nor understanding of the management accountability requirements needed to achieve profitability.”
Those of us who have managed companies know that without team support and buy-in — especially in solving cross-functional or multi-department issues — little is accomplished.
Ron continued, “I conceived a detailed accountability and responsibility model which I sold to the C-suite. Likewise, I put together a corresponding detailed financial reporting system partitioning the company into three business units”.
“My recommendation established organizational structures for each business unit to allow for distributed authority throughout each unit, and one that empowered individuals who were charged with achieving profitability.”
“I created financial reports presenting data per product, customer, region, product line, and function by business unit that promptly identified low-margin products, devised tactics to cull those products, identified underperforming activities and projects, and begin working towards profitability.“
Finally, Ron shared, “The key for me was building inter-departmental consensus, securing corporate leadership approvals, and acceptance from multi-organizational units. The results prove that the solutions I put in place worked. We turned a $35M loss in 2013 into a $4M gain in 2015 with a 48% increase in gross margins.”
Those of you out there who may be reorganizing during this time of pandemic, and are seeking results-driven expertise, why don’t you contact Ron Lacey? I know he would be happy to chat with you.
You can reach Ron via LinkedIn.
Listen to the full Video Interview below!
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