Success Story: Challenges as Finance Manager in a difficult environment Interim Director Finance CEE / Automotive supplier

Summary

Assumption of an important and international management function at an unfavorable time (immediately before the end of the year – a critical period for the financial sector) in a difficult industry (automotive supply, especially in Europe under enormous pressure) in a challenging economic environment (price increases for materials, supply bottlenecks, unexpectedly high inflation, restart of the economy after two years of corona pandemic, Russia/Ukraine conflict, etc.).

The finance department for the CEE region had to be taken over at short notice. In the individual countries, the finance area had to be optimized, improved or, in some cases, completely rebuilt and restructured. Under these conditions, this was a challenging management task that was successfully implemented.

Description of the customer

The client is an international automotive supplier specializing in the development and production of plastic components for vehicle interiors and exteriors. The company operates several production sites worldwide and its most important customers include leading European premium car manufacturers.

Initial situation and challenge

The interim mandate served to bridge the vacancy. The previous Regional Finance Director of the newly created CEE region had left the company at the end of the year after several years; the search for a successor had not yet begun.

The biggest challenges included preparing annual financial statements audited by international auditors in accordance with local law and international accounting standards (IFRS) together with the finance and management team, approving the budget planning for the following year and ensuring a smooth start to the new financial year (monthly and quarterly financial statements).

The interim manager took on operational responsibility from day one – without any training period – and was able to implement solutions immediately thanks to his extensive experience, including at an international level.

Goals and tasks

• Management of the local finance teams
  Responsibility for around 20 employees in accounting and controlling at 7 operating locations in Germany, the Czech Republic and Poland.
• Ongoing monthly and quarterly financial statements
  Preparation in accordance with local and international accounting standards (IFRS), including reporting and analyses.
• Annual financial statements
  Coordination and processing of the annual financial statements of 13 legal entities, contact person for international auditors (e.g. PwC, Ecovis, Rödl & Partner), preparation of management report, going concern report and impairment tests.
• Business Partnering
  Main point of contact for financial issues vis-à-vis the Executive Board and site managers at global and local level.

Measures and implementation steps

• Quick assumption of responsibility
  The handover took place quickly and smoothly, and all areas of responsibility were assumed directly.
• Weekly jour fixe
  Regular individual and group discussions with all direct reports via MS Teams. This ensured clear communication, structure and promoted mutual trust.
• Clear and open communication
  Problems were addressed directly and implemented in a solution-oriented manner together with the teams and the central Group functions.
• Involvement of Group functions
  Close cooperation with Group Controlling, Group Accounting, Group Tax, Group Treasury and the CFO. This enabled specialist issues to be decided quickly, unbureaucratically and in a constructive environment.

Successes and results

• Current monthly and quarterly financial statements
  Timely and reliable financial figures (income statement, balance sheet, cash flow, liquidity plan) for all companies. Deviations from the budget were analyzed at an early stage and communicated transparently.
• Annual financial statements
  Successful preparation and audit of the annual financial statements of all companies by external auditors.
• Business Partnering
  Proactive communication and close cooperation with decision-makers at Management Board and location level.
• People Management
  Ongoing coaching and development of employees in the area of finance.
• Process improvement and harmonization
  Introduction and transfer of best practice models to several locations (e.g. reporting, analyses, business partnering).
• Strategic development of the finance organization
  Development and presentation of proposals for the future structure of the finance function in the region, submitted to the Executive Board for a decision.