Strat KAIZEN™ in Machine Tool Company

This case study explores the strategic and cultural transformation of a machine tool company operating in the sheet metal processing industry. Faced with years of financial decline and organizational instability, the company embarked on a journey to recover profitability and build long-term resilience.

By leveraging the principles of Strat KAIZEN™, it aligned its structure, strategy, and people around a shared vision of innovation, customer value, and continuous improvement.

The company and its global commitment to innovation

The company is a global provider of engineering solutions for the sheet metal process industry. With a clear mission to support and optimize its customers’ manufacturing processes, it is continuously committed to innovating and enhancing its equipment portfolio.

Operating with a strong international mindset, the company sees the global market not as a future ambition but as its present reality. Its active presence across various countries enables it to contribute to economic progress and enhance the daily lives of thousands of users across diverse industrial sectors.

Focusing on technological excellence and customer value, this international reach forms the backbone of its transformation journey.

Challenges faced before the transformation

Operating in the machine tool manufacturing sector, the company faced a prolonged decline between 2010 and 2016. This period was marked by declining sales, significant financial problems, and persistent organizational instability, resulting in a negative EBITDA.

It became evident that the company required a profound transformation, not only to recover financially but also to rebuild its internal structure and culture.

Figure 1 – Trend of revenue and EBITDA losses

Reorganization and strategic alignment

The first response came between 2016 and 2017, when a “clean-up and restructuring” plan was executed. This included the complete replacement of the entire management team and the horizontalization of the organizational structure.

In 2017, the company began a cultural transformation by introducing Daily KAIZEN™, laying the foundation for a disciplined, improvement-focused operational culture. This created the ideal conditions to evolve towards a breakthrough strategic design in 2018 with the implementation of Strat KAIZEN™.

The Strat KAIZEN™ approach to business transformation

The adoption of Strat KAIZEN™ marked a strategic shift in how the organization tackled challenges and seized opportunities. The main goal was to establish a clear course for sustainable growth in turnover and profitability.

Key initiatives included:

• Breakthrough Hoshin Deployment: implementing 20 strategic projects in five strategic initiatives.
• Redesign of the commercial structure and sales philosophy: stronger focus on customer experience and after-sales service.
• Product roadmap based on technological innovation: aiming for agility in delivering market solutions.
• Building a culture of continuous improvement: enhancing motivation, alignment, and involvement of the entire organization.

These efforts took part of the Strat to Action plan to increase turnover and profitability.

Results achieved through Strat Kaizen

The Strat Kaizen produced tangible and impactful results on both economic and organizational levels:

• Economic recovery: Reversal of the previous downward trend with a positive and growing EBITDA.
• Sustained increase in turnover: Driven by a customer-centric strategy.
• Implementation of a continuous improvement culture: Directly impacting talent retention.

Figure 2 – Sustained increase and economic recovery

This case study demonstrates how a clear strategic vision and cultural transformation can reverse years of decline and set a company on a sustainable growth path. Through the Kaizen methodology, the organization not only recovered financially but also strengthened its internal capabilities, aligned its teams, and fostered a culture of continuous improvement, ensuring long-term competitiveness in the global market.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.