Salzer Consulting : Chinese state-owned automotive component systems plant revitalised to world standards

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Developing & Managing Human Capital • Global Networks • Cross-Border Strategies


Chinese state-owned automotive component systems plant revitalised to world standards

A Chinese State-owned automotive components systems plant, hampered by extremely inefficient work practices approached Salzer Consulting to manage an extensive restructure of its operations. Its workforce of 3500 needed to be reduced to 1900 in order to achieve world’s best practice. Corruption was endemic and morale was low.

Salzer Consulting’s project was to map the steps required to effect turnaround, identify all key blockages and to oversee implementation.

Using the Xin De Kai Duan revitalisation process, the company was downsized and restructured with minimum disruption, allowing profitability targets to be achieved within a short timeframe.

In-depth culture change removes the corruption

Change was necessary at all levels. Salzer Consulting implemented a full-scale management audit and drove through comprehensive anti-corruption processes.

Systems are re-structured to world standards

Significant changes were required to improve internal systems. Many, including Sales and Purchasing, Administrative functions and re-training schemes, had to be rebuilt from the ground up.

In conjunction, technical refurbishment teams were project managed throughout the restructuring process to achieve world standard performance.

Relationships re-negotiated

Externally, it was necessary to re-negotiate relationships with government and unions. Internally, “new blood” was resourced, ensuring integration occurred successfully.

Restructuring costs were minimised by negotiating extensive retraining agreements with the local Labour Bureau and utilising “Off-Post” methodologies.

HR consulting services included the empowerment of local managers and board members, the introduction of new Compensation & Incentive (C&I) systems, and the rebuilding of HR capabilities, policies and procedures.


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