Renee Fellman knows how to implement change quickly and effectively. Most executives achieve significant results over a period of years. Fellman, however, achieves dramatic results in days, weeks and months.
Fellman's leadership of the first-ever business planning process as well as her design and implementation of a management accountability system yielded a 300% improvement in gross margin and a swing from -27% to 4% net profit within 12 months in a family-owned packaging company.
The management accountability system developed by Fellman during her seven months as Interim CEO of an employee-owned commercial printing company led to
- A long-lasting return to profitability
- 15% increase in revenues
- On-time deliveries skyrocketing from 50% to 98%
- Dramatic improvement in accountability
- New strategic direction
Within the first 3 days of her tenure, by using the latest technology, Fellman uncovered $600,000 in cost savings at a wholesale distributor. Company personnel had been issuing credits and accepting returns of special order merchandise, merchandise the company could not return to its vendors.
By implementing all of the recommendations included in Fellman's operational audit, a national trucking company business unit improved its operating margins by 30%. Fellman had spent fewer than 40 hours at the company.
Turnaround Case Study: PML Microbiologicals
- PML Microbiologicals, Inc. was the sole subsidiary of PML, Inc., a publicly traded, FDA-regulated medical device manufacturer. PML, the third largest supplier of culture media in North America, reached a crisis point in 1995. The company had lost money or operated at break-even every year since 1991. In 1994, financially and operationally troubled PML acquired a financially and operationally troubled competitor, Adams Scientific. That acquisition precipitated a crisis.
- In 1995, PML's operations were out-of-control. Financial records were inaccurate and out-of-date; the company had no business plan; there were frequent overdrafts at the bank; the company was on COD or credit hold with many vendors; systems were woefully inadequate; there were frequent stock-outs of raw materials and finished goods as well as numerous shipping errors; inventories were inaccurate; there was a growing chorus of customer complaints.
- The Special Assets Department of PML's bank recommended that PML engage Renee Fellman. PML agreed.
Renee had full operating authority at PML from January 9, 1995 until mid-April 1996. Working as Interim CEO, Renee
- Gained control of cash and purchasing
- Restored credibility with stakeholders
- Prepared the company's first-ever operating plan
- Reduced personnel costs through operational improvements
- Designed and implemented a management control system
- Instituted cycle counting of inventory
- Tightened production control
- Solicited bids on all materials and services
- Eliminated positions or replaced 75% of managers
- Avoided Chapter 11 by negotiating a creditors' extension
- PML returned to profitability during Renee's tenure.
- Performance in every financial and operational category improved dramatically; e.g.,
- EBITDA improved 200%.
- Material costs as a percent of revenues
declined from 42.5% to 33.2%.
- Freight costs declined from 6.1% to 1.6%.
- PML repaid its creditors in full.
- PML enjoyed record earnings until 2006, when the company was sold and shareholders realized a handsome profit.
- In 1997, Fellman received the Turnaround of the Year Award from the international Turnaround Management Association for her remarkable leadership at PML.
Please note: Because Fellman's experience is unusually broad and because protecting confidentiality has been a high priority for most of her clients, the information on this website provides only a top-level overview. To obtain references and/or detailed engagement descriptions, including company names, dates, and references, please contact Fellman directly. (Click here for contact information).