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Change Management
Change management is about the people side of change; it is the process, tools, and techniques used to effectively manage people and the associated organizational issues that emerge when implementing business changes. Change Management Services address all strategic and tactical changes that have an impact on the firm, its operating procedures, its business processes and its people. These changes may require any combination of specialized communication, buy-in, adjustments in technical or non-technical job skills requirements, education and training, organizational restructuring, cultural or performance management adjustment to help ensure that the new approach is understood, accepted, and adopted.
Our approach to change management includes:
- Leadership and Sponsorship
- Performance Measurement
- Two-way communications
- Education and training
- Organizational alignment
- Personnel implications
Case Summary
The referral came to Monticello Capital from an existing client, a multinational, publicly-traded investment bank. The new client firm had just been acquired through a private leveraged buyout in which management had taken a high personal equity stake. The company was in the unusual position of operating in a very mature industry - “on the edge of smokestacks” as its CEO once remarked - but with the expanding pull of heightened demand in a newly-globalized market. Significantly, the highly-specialized and fully-amortized manufacturing equipment could not easily be replicated in nations with a low wage rate of labor. The company’s fundamental problem was that it had no additional access to capital after its LBO and the plant was operating at near capacity. Monticello Capital’s analysis and advice convinced the firm’s leadership that it actually could make the toughest choice available to an advanced technology manufacturer: cannibalizing its own solid safe sales for higher-margin new opportunities. With a steady increase in net margins, post-acquisition cost controls, and rapid re-investment of the new free cash flow, a major increase in productive capacity was achieved within nine months. The LBO debt financing was able to be accelerated through a new preferred convertible stock offering that also brought in additional expansion capital in a transaction managed by Monticello Capital.
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