The company is an Italian multinational manufacturing and selling machinery for the food industry. It is owned by an important PE fund, which is currently optimising operations and driving both organic and inorganic growth. A key part of this optimisation process is the implementation of SAP within all its subsidiaries. After the successful project in Spain, the company decided to use an interim solution also in LATAM and in Italy.

Situation

In Spain, the focus is on implementing SAP and merging three companies with similar activities and complementary geographical reach, all belonging to the same venture capital fund. To accelerate the implementation of transformation projects, the client decided to separate the day-to-day financial activities from the transformation processes.

Challenges

The company faced several challenges during project implementation:

• Replacement of the finance director: During the project, it became clear that there was a need to replace the finance director. This required additional efforts to manage both the transition process and the search for a new finance director.
• Managing cost synergies and human resources: In the later stages of the project, the interim manager also had to focus on identifying and implementing cost synergies. Moreover, he took on the role of HR director, which included negotiating incentive leave agreements and managing relations with trade unions.
• Culture change through SAP implementation: The implementation of SAP required a significant culture change within an organisation that was used to working manually. This required a profound transformation in the way of working and thinking.

Action

The following steps were taken during the project:

• Takeover of financial leadership: The interim manager took over the financial leadership of the main company of the three that were to merge. This included negotiating the separation process, finding and training a new finance director over a two-month period.
• Expansion of responsibilities: In addition to the original duties, the interim manager added cost synergy management, as well as responsibility for Human Resources. He negotiated incentive leave agreements and managed relations with trade unions.
• Implementation of SAP and process optimisation: The interim manager drafted a work plan that stimulated a change of mindset within the company. This plan included the optimisation of work processes in various areas, such as sales and operations, and introduced simple tools for preparing work reports and settling travel expenses.
• Merger of group companies: The interim manager engaged specialised legal advice to define the roadmap for the merger of group companies in Spain and implement it as soon as possible. Due to limitations in auditing interim accounts during the SAP implementation, the merger was executed as soon as the financial statements were closed and audited.

Results

After ten months of the project, the following key results were achieved:

• Successful implementation of the ERP system within five months.
• A 50% increase in invoicing by setting up a process for late invoicing of the technical department.
• Establishment of an individualised profit centre to monitor the activity of the technical department, which proved crucial in supporting machine sales.
• Implementation of computer tools to prepare work reports and automate travel expense management.
• An unqualified audit, demonstrating that the finance function was performed correctly.
• Training of the new Finance Director for a period of two months.
• Preparation of all necessary documentation to start the merger process once the accounts are prepared.
• Successful implementation of the synergy plan designed by the Company.