Global automotive components supplier: Public commitments that held under pressure

1 min read

Automotive & Transportation Manufacturing

Empowered Ownership

A long-troubled program at a major automotive components supplier had never once met its budget, and was heading for an 11 million dollar loss. By rebuilding accountability from the ground up, with executives making public commitments and teams making daily promises, the program instead delivered a 5.1 million dollar profit.

Outcome 1: A 5.1 million dollar profit delivered, against a starting trajectory of an 11 million dollar loss
Outcome 2: The first three consecutive months of meeting budget in the program’s history
Outcome 3: Around 4.1 million dollars of cost savings in the year, with a further 12.8 million dollars over the products’ lifetime

The challenge

A major automotive components supplier in the Americas faced a defining moment. A long-troubled program, with a culture staff described in the bleakest terms, had never met its budget in any quarter. The chief executive set a clear goal: deliver a 5.1 million dollar profit by year end. The unaided path pointed to an 11 million dollar loss, and a mid-year drop of more than 2,500 units from a key customer would test it further.

Left on its path, the program would continue its cycle of missed commitments and financial underperformance, eroding trust with customers and partners and widening the gap across the whole Americas region.

The approach

Working with the chief executive and wider leadership team, we rebuilt accountability from the ground up. Twelve senior leaders made public commitments to their own budgets. A project team of around 15 people volunteered to deliver the 5.1 million dollar result, more than the chief executive had asked for. Working alongside them daily, we set a rhythm of promises, requests and honest, real-time flagging of problems that made ownership visible at every level.

The impact

The promised 5.1 million dollar profit was delivered by year end, against a starting path of an 11 million dollar loss, and despite the mid-year drop in volume. The program met budget for three months running for the first time in its history, delivered around 4.1 million dollars of in-year savings with far more to come, resolved a 20 million dollar warranty claim, and won a new contract. As staff put it, pride was back.