GHG / ManWah — from a multimillion loss to near break-even
Hands-on management of the entire company and a comprehensive restructuring of an upholstered furniture manufacturer. The net loss was substantially reduced in the first year, bringing the company close to break-even.
Starting point
GHG Sp. z o.o. operated in upholstered furniture manufacturing. The company reported a net loss of PLN 6,520,118.00 for 2016. Mariusz Grzybowski took responsibility for daily management at the beginning of 2017.
Actual management responsibility
Position: Factory Director / Managing Director. The owner formally remained President of the Management Board; Mariusz managed the entire company on site on a daily basis, not production alone. His responsibilities included production, sales, purchasing, planning, logistics, financial oversight, HR, IT, product development and maintenance.
Transformation measures
- Redesigning production processes, management structures and accountability
- Comprehensively redesigning production workers’ pay: work standards, piecework rules, incentive systems and a closer link between pay and performance
- Strengthening product costing, profitability control, inventory and purchasing management
- Stabilising operations and implementing changes throughout the business
Documented financial result
GHG reported a net loss of PLN 6,520,118.00 in 2016. In 2017, the first year of Mariusz Grzybowski’s day-to-day management of the business, that loss was reduced to a near-break-even level. The formal net result remained slightly negative. In subsequent years, the company delivered positive results and improved profitability.
Strong trade unions
The restructuring took place in a business with strong trade union representation. Implementing organisational and production changes therefore required attention to employee relations and social dialogue.
Production pay reform
The remuneration system for production employees was substantially redesigned, including work standards, piecework arrangements and performance-linked incentives. This was a key part of the operational transformation.