van Strek is a man who has, or certainly had, the ear of the owner, and a man of integrity.
Parteisch International and Parteisch UK 133 The changes in Parteisch International over the years had led to major overlaps between manufacturing plants. Geographical separation led to difficulties in communication and consistency within the com- pany. The organization was complex, diverse and unwieldy in terms of decision-making and longer term strategy for Parteisch International as an increasingly global company.
At first, solutions had been sought within the existing structure. Cus- tomers were delegated to account managers at manufacturing plants with the best contacts or the best match between place of manufacture and the customer. Some attempts were made to standardize logistics and deliveries from different manufacturing plants, but this was not successful or lasting. Similarly, a standard approach to the purchase of raw materials had met with limited success. There was an attempt to achieve standardized inter-company prices to avoid internal ‘shopping’
by customers, but this generally failed outside Belgium and even inside on many occasions. There were increasing conflicts of interest between manufacturing plants and duplication that led to higher costs and lost custom. The result of growth in these circumstances was that Parteisch International had lost the ability to control their situation and the long- term unity of a growing company in the global market.
Jan explained that Ronald had asked an external consultant to examine these problems and this had resulted in recommendations that had been accepted by Christoph Posten and the Supervisory Board. Some of the changes had already been announced at a meeting of senior managers of Parteisch International in 1999 following the consultant’s report and included a different role for Parteisch International and a new management structure, the segmentation and serving of the market by category of customer, and the separation of the responsibilities for marketing and production.
In practical terms, this had resulted in the recruitment of himself as Marketing and Sales Director and Bert Jonkers as Manufacturing Director of Parteisch International with Ronald van Strek remaining as CEO responsible for the management and direction of the company and reporting to the Supervisory Board. Tues Kokke, Financial Controller, reported directly to the Board of Directors. Parteisch International wanted to be a producer and supplier with a leading market position in Europe and North America. Fulfilment of this objective would be based on at least 20 per cent market share in countries where sales units were established and earnings before interest and tax were at least 25 per cent.
This was to be undertaken as a result of setting up an efficient business structure, a cost saving programme at an international level, improvement
of customer supply chain management, rationalization of sales with respect to customers and products, and Total Quality Management (TQM).
Jan Straaten went on to explain the details of the key business strat- egies through an efficient business structure, delegation to the managers of the units with improved reporting systems and a single management control system using a standard software package. Major strategic planning for Parteisch International would emanate from Head Office through an improved and regular communications system.
Jan Straaten’s description of the plans for the future of Parteisch International was plainly not something that had been planned over- night or in isolation. This had been agreed with the owner and the Supervisory Board as a fulfilment of the consultant’s report published in spring 1999. There is now a new structure, there is agreement that the Board of Directors has executive authority reporting to a Supervisory Board, and Ronald van Strek remains as CEO.
Jan Straaten appeared to be a confident and competent marketing pro- fessional who presented a comprehensive and credible plan that recog- nizes the needs of specific homogeneous target markets and bases the strategies of the company on repositioning in these markets. He took the role of explaining where the company had been, where the company currently was, and where the company was going. He came across as a good and willing communicator; someone who wanted to educate and persuade that change is needed, and presented a plan of the way forward.
A social evening
There were various discussions during a social evening at Bruges on 30 June 2002. The dinner that evening was eaten at a traditional restaurant in the old city of Bruges. The same Belgian managers who attended the afternoon meeting came to dinner. Many were staying overnight at the same hotel as the UK managers. They met with the UK managers at the bar of the hotel and taxis picked up the party to be taken to the res- taurant. Christoph Posten arrived in his own car and spoke to the assembled dinner party of huge problems in the UK. He told them that he was looking forward to an improved and prosperous future and the purpose of the meal was to celebrate and to look forward and not backwards.
Brian Griffiths, UK Plant Manager, was matter-of-fact about his feelings on the subject of sales and sales personnel. He did not like sales people because they made promises without any consultation with production, and then blamed production for failing to do the impossible. He said that David Stewart, the former Managing Director in the UK, was a major culprit and Nigel Jones, the Sales Manager, was certainly no better.
Parteisch International and Parteisch UK 135 He hoped that things would change. Apart from anything else, products from the Far East had been ordered and delivered by the container load and most of this stock remained on the shelves unsold. Some of this stock was many years old with little apparent possibility of selling the products.
Crijns van Sittard, Purchasing and Quality Manager, and Mike Wilson, UK Factory Manager, spent most of the evening reminiscing past production events that they had experienced together. They told Tom Eden that they had worked closely together when the UK factory was first built. Crijns told Tom that he had known Teresa and her brothers and sisters since childhood. He bemoaned the fact that the owner had been personally let down by David Stewart and described their relation- ship as a ‘friendship’. Crijns and Mike spent a lot of time recollecting the old days and the joys of manufacturing and machinery.
Nigel Jones was notable by his quietness although Jan Straaten tried to engage him in conversation throughout the meal. He seemed interested only in discussing football and drinking beer. His only words to Tom Eden during that evening were to assure him that he would take care of existing customers and Tom ‘could get on with the rest’!
The tension between the sales function and production function was plain. There had been a lack of communication and common direction within the UK business. This tension apparently resulted in problems for the customer. It seemed that Parteisch UK had been managed auto- cratically by one man, David Stewart, with the act of making a sale – and perhaps his own self interest – as a priority. Stock management and control had not figured as important in the managing of the business.
There was the suggestion that the Sales Manager behaved in a similar way to the former Managing Director. His disposition at dinner, as previously in the day, did not suggest a committed team player.
Crijns van Sittard plainly enjoys manufacturing and machinery. His personal and long family friendship with Christoph Posten suggests a simi- larity between the two men. The owner’s long-standing friend must have become aware of the high stock levels and the lack of sales and production harmony. What did he do about the situation? He apparently did nothing – and he does not really understand why David Stewart had to leave or what had gone wrong. We have the suggestion that the former UK Man- aging Director was a ‘friend’, and almost certainly trusted, by the owner.