Risk - The Automotive business, which was ranked third of 3 in its category was at risk of losing its 2 largest customers (70% of sales, 80+% of profitability), due to quality, delivery and responsiveness issues. The other businesses were further along in the decline spiral and were operating at a loss, due to the same issues as above, in addition to significant technical advances and price concessions made by their direct competitors. 

Management - Most of the key positions in the Company were held by long-term employees who were reluctant to change, and viewed the customers as their enemies, rather than the people paying their salaries.

Manufacturing - All of the businesses were manufacturing driven. However, no efforts were made to improve processes, increase yields, or reduce costs. In several divisions the director of quality actually reported to the head of manufacturing. 

Sales & Marketing - For the Automotive business this was done by a long-standing manufacturers' representative group that was earning a 2.5% commission ($10MM/yr.), but viewed this relationship as an annuity, to which they would devote as little time as possible. Thus, customers were not being serviced or represented, problems were never resolved and new programs were not being obtained to replace those that ended.

Finance - Financial controls were lax. What information was available was never analyzed or used as a tool to measure or improve performance. Information was typically reported for each division as a whole, with no breakdowns for profitability by contract (several in excess of $50MM annually), facility, product line or customer. 

New Leadership- CXO Advisory Group was hired by the Company's Board of Directors to lead the transformation of the Automotive business, while concurrently orchestrating the turnaround and subsequent growth of the five smaller divisions. 

A new, customer-focused and results-driven management team was installed.

Aggressive marketing and product development initiatives were implemented, including the creation of a global, salaried, marketing and design organization.

Manufacturing was reengineered and streamlined, reducing costs and improving quality.

Stringent financial controls were instituted. 

Through changes in marketing strategy, aggressive programs of product innovation, cost reduction and quality improvement, combined with a dramatic increase in export sales, these businesses subsequently experienced annual revenue and profit growth in the range of 15% to 19%.