After achieving record earnings growth in his small division, a $200 Million high-tech manufacturing business, Division President Claude Hanson faced the most challenging assignment of his career. He was promoted to President of TEKMORE, the combined global entity of his small division and a newly acquired company that was made up of seven very small tech companies. With $750 Million in revenue, TEKMORE was the largest division of parent company Acmetech and strategically, the only growth division.
TEKMORE was born with many challenges. All seven of the acquired company entities were different – in products, niches in technology, location (different countries in Europe and Asia), and distinctly different cultures. All seven companies had something in common – the tech bubble had burst and dragged them all down in sales and profits. Morale in all was low, newly acquired managers exhibited a “deer-in-the-headlights” complacency, and previous efforts to rebound were halfhearted and unsuccessful.
Additionally, Acmetech’s CEO had high expectations for TEKMORE: improve operating profit significantly, globalize the company, and focus on global customers, all while leading simultaneous growth initiatives in anticipation of a tech rebound – and do it fast. Hanson said, “I had hoped for a dream job for my promotion, and my boss said, ‘Congratulations, Claude, we’re giving you our entry into the tech world. It’s a mess of a company and tech is down, but I expect you to produce record profits and produce superior returns, this year!’”
"Thanks to Topgrading and the improved team, operating profit tripled over two years and TEKMORE gained the confidence of major customers around the world."
Claude Hanson, Division President