INTERim Operating Partners

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Overview

In times of great change, management teams seldom remain static. DPO&Co is capable of facilitating the transition of C-Suite executives and upper management so full-time staff can hit the ground running. DPO&Co has served as an interim operating partner for organizations by documenting previous standard operating procedures, improving  and executing them, and on-boarding newly selected candidates into their roles.  

CASE EXAMPLE 

 6-Week Project: CEO and GM of a PE Portco departed during turbulent times. During the full-time replacement process, DPO&Co supported a turnaround of HR, operations, and maintenance, driving $11M+ EBITDA 

Situation

  • Client was a $300M PE platform company that acquired a $100M bolt-on manufacturer of food ingredients and aseptic packaging beverages
  • Both the CEO ad General Manager of the bolt on left the organization 
  • Client re-engaged DPO&Co after the initial project, which focused on Activity Based Costing (ABC) Model and operational Value at Stake (VAS) levers (worth $30M)
  • Client’s EBITDA numbers were declining due to poor production performance, which was amplified by producing unprofitable SKUs and other maintenance issues
  • DPO&Co team was tasked to drive a holistic turnaround consisting of :

  1. ABC model implementation to support pricing negotiation
  2. HR improvement for employee engagement
  3. Operational VAS implementation to increase EBITDA impact
  4. Maintenance root cause analysis to reduce production downtime

Approach

  • Interviewed 10+ stakeholders and production staff to capture changes since previous project and 10+ production staff to capture HR survey
  • Collaborated with HR & production leads to benchmark salary & performance best practices and design events and KPIs to improve employee engagement
  • Collaborated with client team to push Value at Stake initiatives, find and negotiate with suppliers, and secure financing
  • Reduced overpriced outsourced activities (e.g. trucking & storage)
  • Invested on processes to reduce waste (e.g. flow maters & pail filler)
  • Implemented new pricing for specific packaging and storage costs
  • Addressed maintenance root cause analysis by installing cameras for two production plants and warehouses and developing a standard operating model to capture downtime, planning deviation and potential EBITDA impact

Impact and Results

  • Provided visibility to C-suite on the major factors of declining EBITDA & required action plans / solutions to turning those around
  • HR employee engagement – potential $9M EBITDA
  • Aligned KPI with production output
  • Benchmarked salary against market
  • Designed performance evaluation and clear career progression plans
  • Implemented hard and soft benefits, e.g. employee of month parking, hard-cash bonus
  • Drove VAS implementation by securing $0.6M capital expenses with $2.5M EBITDA impact
  • Set up structure and cadence for client team to continue momentum for other low impact VAS with longer execution time
  • Maintenance root cause analysis
  • Identified $20M+ EBITDA future opportunity by reducing unplanned time which was ~15% total hours
  • Trained client team on the SOP (Standard Operating Procedure) for using the camera and excel model for continuous improvement initiatives

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