by Joe Carroll
(Adrian, Michigan)
Chicken, we are a custom contract supplier (use to be around 6.5 mil sales, now at 1.9-2 mil) small business of about 20 people (use to be 50). We also have Design (CAD) and machining centers (CAM) that aid in prototype molds, fixures & hard tooling. We offer these services to our customers so we can control Designs, tooling and part tolerances to insure better quality and customer satifaction. We are in a real down turn and I have taken a proactive lead. The Accounting dept come up with a model plan as this, lay off all Directors & manangers of all divisions, VP will take control of all divisions ( has no experience ,only in the Rotational end), keep the hourly people doing what they do but with little or no surpervision, Keep all three accounting personell, high pay and with only 15 regular employees left I feel this model was created to save their jobs and not the company. My model would involve, Layoff 2 accountants, put the final one on part time, Directors would transfer to machines and or finishing, Elimanate sales position and have engineeing and VP do sales as we had been doing 25 of the 30yrs I have been here(President brought in his son 5 years ago and the down turn started). We would lose some employees but I feel that, if the core group is still here it would be able to the necessary functions and and keep the quality standards and production going with no real problems.
From the professor: I'm not sure you're a Chicken. I need to know about your customers: their number(s), how long they stayed with you, etc. Your location hints at the possibility that your downturn is tied to the auto sector. If so, you may have been a Black Widow or a Pig.
If you want advice re the turnaround, go back to the site and send me an e-mail. The spirit of the site suggests that your current crisis, and any hope of recovering from it, must be framed in customer terms.