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Diversified Automotive
Chemicals Manufacturer
Needing New Focus
This third generation family business is a pillar in the local
community. Financial results in the past few years, however, were slipping,
particularly in one of their three divisions. In order to prevent further
erosion, Norelli was hired to provide a comprehensive strategic analysis
of the company’s divisions and the industries in which they competed.
Based on the results this analysis, Norelli led the executive management
team through a strategic planning process, ranging from the definition of
the Company’s core purpose to detailed action steps including responsible
personnel and deadlines.
Led by Norelli’s preliminary findings, the Company started closing
down one of its three divisions even before the engagement ended. Management
appreciated Norelli’s ability not only to help in the formulation
of the plan, but also to gain “buy-in” from all levels in the
Organization. Currently, the Company is in the middle of implementing the
plan and is well along the road of future prosperity.
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A Perfect Fit: Consolidation
of Two Sister
Divisions Leading to Best-in-Class
A diversified aerospace and defense manufacturer was struggling with the changing
demands of several distinct market segments, including aerospace and automotive
markets, and doing business under two names while operating from two locations.
After a thorough organizational and strategic assessment, Norelli saw an unusual
opportunity for two imperfect pieces to fit perfectly together. Inventorying
talent across all functions in both locations, Norelli assisted the newly-designed
executive management team to create a consolidation plan to transform these businesses
into a “best-in-class” competitor.
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Supplier to the Defense
and Commercial Aerospace
Industry in Need of Revitalization
A designer and manufacturer of electronic connectors for the commercial and military
aerospace industries struggled with its transformation. The company was required to move from a founder-dominated
closely-held business to a performance-oriented operation as mandated by a shifting
market environment and its new owner, a multinational aerospace company.
Executives were asked to assess the interactivity and productivity within
the senior management team. During confidential face-to-face
interviews, Norelli quickly gained the trust of senior management
and identified the causes impeding the organization’s transformation
process. Norelli summarized its findings in a detailed evaluation of each
individual’s
strengths, weaknesses and future potential. To the surprise
of the parent company, Norelli’s opinion was that the company had
the required talent to move the organization to the next level,
assuming executive coaching was provided and selected managers promoted
from within the ranks.
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Product Commoditization
Driving Regional Automobile Club to Change Organizational Focus
An automobile club was diversified into various business segments and facing
significant market shifts in most of them, caused by changes in technology and
customer preferences. While the Company had produced years of consistent profitability,
its overall financial performance was sub-par when compared to its peers. The
Company’s domestic call center suffered from high turnover and the related
additional cost of frequently hiring and training new personnel.
Norelli conducted extensive confidential interviews with employees in
each division and location, and carefully analyzed the individual market
segments as well as internal records. Norelli’s recommendations centered
around changing the Company’s mindset from a product-oriented to
a customer-centric organization, and separating commodity-like services
from innovative, high value-added products.
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Graduate School of Leading
Public University Looking for Consensus and Strategic Direction
Although this graduate school of a leading public university was rated higher
than ever before in its history, the faculty, administration, and the board of
advisors were not united regarding the future direction of the school. Furthermore,
students and employers of graduates had differing opinions on the type of education
the school provided. Norelli was retained by the School to conduct a strategic
assessment and lead a multifaceted team through a strategic planning process.
The cornerstone of the strategic assessment was 120 confidential interviews (mostly
face-to-face) with all constituencies of the School. These interviews allowed
Norelli to probe and determine problems while formulating ideas about how to
address the school's significant challenges and opportunities. Norelli led the
team through three strategic planning retreats where data and ideas were presented,
debated, and ultimately set within a comprehensive strategic plan.
The result of Norelli’s work gave the School the framework and direction
for the future of the institution. The School used the plan for positive
action, creating mechanisms to retain and attract top faculty while further
enhancing their teaching mission.
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Revitalization
for New Growth in Decorative Construction Products
The US subsidiary of an international building products company was financially healthy, though not
growing. Working alongside the relatively new CEO, Norelli assessed the real opportunity within a
struggling SBU and evaluated the key management team, paying special attention to ability to
innovate and cultural affinity with the European parent (a second-generation family business).
The result was selective infusion of new talent (financial and marketing), internal promotions
within engineering and operations, a make-or-break business plan for the under-performing SBU and
an expanded strategic planning process reconfigured to meet the expectations of the parent.
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Successful Assimilation of Two Industrial Product Acquisitions
Norelli conducted strategic and organizational due diligence on
two companies to be acquired by a long-standing foreign-owned
industrial products client. Assessment of talent, market reputations,
including product, technology, and service capabilities, and brand
recognition all led to the development of assimilation plans which
included some executive transfers in both directions. Norelli’s work with both acquired companies has continued. A third potential acquisition was
cancelled based on Norelli’s organizational due diligence.
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Merger of a Capital Goods Manufacturer with its Arch Rival
A market leader supplying capital equipment to the logistics and warehousing industry had acquired
its hated competitor, extending both geographic reach and product offerings. The history of intense
rivalry between the two parties dictated a significant amount of sensitivity and experience in
bringing the organizations together.
In confidential interviews with all executives of both companies, Norelli identified the most
significant strategic issues and opportunities for the newly-formed organization. A detailed action
plan was developed merging sales and marketing organizations, which included significant promotions
from both sides. Following a thorough cultural assessment, Norelli was able to gain the buy-in of
all relevant executives and secured a successful start of the new organization.
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Family Distribution Business in Need of Revitalization
The lack of management depth and outdated technology and processes paralyzed the organizational
development of this third-generation family business (a leading distributor of supplies and
materials for construction and HVAC markets). While still financially stable, the Board asked
Norelli to be the change agent and position the company for future growth.
Under Norelli’s nine-month-long leadership as interim President & CEO, unprofitable
market segments were eliminated and the management talent realigned.
Norelli restructured the MIS department, followed by the design
and implementation of a company-wide IT conversion program involving
more than 100 branches, which was successfully completed ahead
of schedule and under budget.
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Merger Assimilation of North/South Rivals
Two leading manufacturers of custom folding cartons and other specialty packaging for the
pharmaceutical and personal care industries needed assistance in merging their organizations.
Through interviews with executives on both sides and its long-standing knowledge of the larger
firm, Norelli assessed the cultural differences and identified the potential for synergies.
Norelli conducted a three-day retreat, where the organizational changes, new strategies and action
steps addressing the cultural differences were discussed. Using the best talent from both
organizations, a new executive management team was formed. Norelli continued to assist the new
management team in sales, customer service and operational questions as the new company extended
its industry dominance.
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Organizational Assessment and Design
Following a “Merger of Equals”
A profitable and rapidly growing provider of analytical and testing services for solids and liquids
was pursuing a roll up strategy with private equity backing. After a few small acquisitions,
the company doubled in size with a single merger. Challenges included integrating two
fundamentally different cultures and operating models, as well as combining management teams with
significantly different expectations.
Norelli assessed management of the predecessor companies, designed a new organizational structure,
and recommended staffing for the new company. The new structure reduced political issues, enhanced
morale, and improved operational effectiveness.
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Organizational Strategy and Design for a Public Utility
A publicly traded gas pipeline and distribution company was facing
increasing competition as a result of deregulation. Norelli & Company assessed
the management team in light of the skills required for success
in the new competitive environment. Norelli then worked with senior
management to develop an organizational structure and staffing
to support a transformation from its old operations-oriented culture
to a new customer-oriented culture. This new structure also facilitated
moving into complementary, non-regulated businesses.
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Revitalizing a Future Industry Leader
A new CEO had rescued a family paperboard packaging company
from a crisis, stabilizing cash flow and restoring basic profitability.
Norelli was retained to help with the next steps –
restructuring the business for sustainable success, followed by the “return to normalcy,” i.e.
growth. In concert with the senior team, Norelli developed the
new strategic plan. A particular customer segment where the company
could dominate was identified, a plan to achieve unsurpassed pre-press
design and CRM skills was put in place, the senior team was strengthened
with additional talent, and unattractive customer segments were
identified and addressed.
Surprisingly, the company’s best days lay ahead. The desired dominance
was achieved, private equity emerged to complete the transition
from family heritage as well as financing further initiatives while
incentivizing management. Mr. Norelli ultimately was invited to
join the Board.
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Market Study & Strategy Development
for Multinational Printer Establishing Operations in the US
A multinational conglomerate with printing operations in Africa and the UK wished to explore
establishing operations in the U.S. Norelli & Company analyzed the commercial printing industry in the
Southeast, recommended an acquisition (as opposed to de novo) strategy, and identified potential
candidates. Client accepted the recommendations and engaged Norelli to conduct a strategic due
diligence of the two leading candidates. Our client bought the lead candidate, successfully
establishing operations in the U.S.
Subsequent to the initial engagements in printing, this client retained Norelli to conduct an
organizational assessment of publishing operations in Africa, paper and converting operations in
Africa and the UK, and media operations in Africa. Norelli recommended changes in management
structure and staffing and developed HR policies and procedures. The client implemented the
recommendations resulting in clearer lines of authority and increased management accountability.
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Revitalizing a Packaging, Packing, and Filling Equipment Manufacturer
A third-generation family business providing packaging machinery
systems for the dairy and juice industries had hired a new CEO
to invigorate the company’s venerable name. Norelli’s assessment
revealed outdated technology in key segments while insufficient
cost accounting had not allowed for a strategic evaluation of
the existing product portfolio.
After independently assessing the market opportunities and the
competitiveness of key products, Norelli helped the company develop
a new strategic plan, narrowing the R&D focus, rationalizing
product lines, outlining a product value engineering plan, and
identifying European alliance partners with state-of-the-art technology
for certain new product segments.
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Management Reorganization in a Fragmented Folding Carton Business
This second-generation family company was well-located geographically with an impressive list of
blue-chip consumer-product customers. Yet, sales were flat, profits marginal, and employee morale
poor. Norelli helped the company by gaining management consensus on direction and goals, promotions for several key non-family executives, developing a new capital budget to improve
efficiency and quality while expanding a growing vacuum forming business, changing plant
management, and clarifying the roles of certain family members. Subsequently the family members
were able to retire, and the current business continues to be profitable.
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Transforming the Future of a Regional Office Supply Manufacturer and
Marketer
A full-line manufacturer of office and accounting forms and supplies, both specialty and commodity,
found itself a non-core business in a much larger public corporation. This division was suffering
from old technology, ineffective plant management, quality problems, stagnant sales and lack of
vision. Assisting a new CEO, Norelli evaluated key people in the organization and assisted in
developing a vision, mission statement, strategic plan with action steps and timetables, and
capital expenditure plan to restore competitiveness.
Upon successful completion of the assignment, Norelli informally
suggested that both the division and the parent might be best served
if the office supply manufacturer were divested. Following Norelli’s recommendation,
the business was sold two years later to a strategic buyer.
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An Opt-Out Decision on Major ERP Conversion for US Subsidiary
The US subsidiary of an international family-owned building products
company was faced with a decision regarding whether or not to
participate in a planned massive ERP conversion scheduled for
Europe. Norelli’s
assessment of business processes, software and hardware platforms
and the capacity to support both internal and external growth
led to a recommendation to not attempt the large conversion, but
instead take smaller steps to satisfy specific needs. Not long
thereafter the European initiative was halted.
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