At ATG Consulting, we are dedicated to helping companies elevate their finance operations and enhance business performance. This showcase details our success in professionalizing and strengthening the Russian finance team of a leading glass manufacturer under a Leveraged Buyout (LBO).

The Challenge

Our client, a prominent glass manufacturer, sought to elevate its finance operations in Russia, encompassing a large manufacturing plant with 1,200 Full-Time Equivalents (FTEs) and a commercial office with 25 FTEs. The primary challenge was to implement a new ERP system to reinforce processes and internal control, while also strengthening manufacturing controlling to drive significant business improvements.

Approach and Overcoming Challenges

1. ERP Implementation and Process Alignment:
   • Approach: Successfully implemented the Group ERP system across Russian operations, allowing for standardization of accounting processes in line with Group requirements while ensuring compliance with local tax and GAAP standards.
   • Usual Issues: ERP implementations often face resistance to change, data migration challenges, and integration issues with existing systems.
   • Overcoming Challenges: We addressed these by conducting comprehensive change management initiatives, including stakeholder engagement and tailored training programs to build buy-in. Rigorous data validation and testing protocols ensured smooth data migration and system integration. Alignment workshops ensured the ERP met both Group standards and local compliance requirements.
2. Manufacturing Controlling Enhancement:
   • Approach: Developed and implemented a robust manufacturing controlling scheme in collaboration with the local team, enhancing operational efficiency and providing comprehensive insights into production metrics.
   • Usual Issues: Professionals frequently encounter difficulties in synchronizing controlling practices with dynamic manufacturing operations and aligning them with strategic goals.
   • Overcoming Challenges: We tackled these issues by fostering strong collaboration between finance and operations teams to ensure controlling processes were practical and actionable. Flexible controlling frameworks allowed for real-time data analysis and adaptability to production changes, enhancing decision-making and strategic alignment.
3. Process Reinforcement and Internal Control:
   • Approach: Reinforced existing processes and strengthened internal controls through ERP system capabilities, improving the accuracy and reliability of financial reporting and operational decision-making.
   • Usual Issues: Ensuring comprehensive internal controls often faces lapses in adherence and the challenge of integrating controls without disrupting workflows.
   • Overcoming Challenges: We strengthened controls by embedding them directly into the ERP workflows, making compliance seamless. Regular audits and feedback loops were established to continually assess control effectiveness, ensuring quick adjustments where necessary and maintaining alignment with Group policies.
4. Team Collaboration and Capacity Building:
   • Approach: Engaged closely with the finance and operational teams, providing training and support to ensure effective utilization of the ERP system and the new controlling measures.
   • Usual Issues: Building team capacity involves overcoming knowledge gaps and unifying diverse team members under common goals and practices.
   • Overcoming Challenges: We implemented continuous learning and development programs tailored to individual and team needs. Cross-functional workshops helped unify team efforts and reinforce a collaborative culture, emphasizing shared objectives and mutual support.

Results

Over a four-year period, our efforts led to a 50% increase in production volume and an 80% increase in EBITDA. These outcomes positioned the Russian operations as the leading contributor to the Group’s EBITDA, showcasing significant business growth and operational excellence driven by our strategic interventions.

Conclusion

The successful implementation of the Group ERP system, aligned with local needs and enhanced by a focused manufacturing controlling scheme, allowed the glass manufacturer to achieve remarkable improvements in operational performance and financial outcomes. This project demonstrates ATG Consulting’s expertise in professionalizing finance teams and leveraging technology to drive significant business transformations.