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Rapid Value Creation in Private Equity Portfolio Companies

Jason’s CEO aimed high—setting performance goals that some executives considered impossible—but it paid off in the end. Strong leadership, aggressive objectives, and a transformative action plan make the impossible a reality.

“We set stretch goals two years ago that each of my presidents thought were ludicrous… and we’ve exceeded them every year,” says President and Chief Executive Officer of privately held Jason Incorporated. “We’ve increased profitability 40% each year, recovered over 200,000 square feet of manufacturing space, drastically reduced inventories, and added hundreds of millions in revenue.”

“We weren’t realizing our intrinsic value as a public company,” adds Dave. “Effective private owners like ours establish aggressive goals — we basically had a two-year window to execute a five-year plan for transforming the company. TBM is very comfortable in situations like this. They immediately began to show us, hands-on, how to use the Policy Deployment process and LeanSigma methodologies to quickly drive Operational Excellence and culture change throughout our five businesses.”

Challenge

How to create an organization focused on key value drivers. Needed to integrate an outside partner into their investment review process for acquisitions. How to reduce lead times, improve quality, create pricing flexibility, and facilitate innovation.

Today, Jason is either the North American global leader in 905 of its niche products. The active example set by my entire management team has been essential. One of them is always on one kaizen team, on a shift-change walk-through, or involved in some other activity with our workers to demonstrate how important this is for all of us. It’s a journey that’s never done because substantial improvement opportunities always exist.

Solution

Operational due diligence, valuation of lean opportunity pre-LOI; policy deployment and lean implementation post acquisition. Helped to embed lean culture while reducing costs, eliminating waste, and streamlining processes.

“Policy Deployment (also known as Strategy Deployment) has been critical. It helps us identify what’s really important to the company—the vital few objectives that our lives depend on. More importantly, it tells us what we should not be focusing our resources on.”

—President and Chief Executive Officer of privately held Jason Incorporated

We also use it as a communications tool to cascade those objectives down through each level of the organization so everyone is focused on what we need to do. And LeanSigma processes provide the speed and toolsets for achieving ad sustaining Operational Excellence, the foundation for profitable and organic growth.” 

 

Results

Increased profitability 40% each year for three years; recovered 200,000 square feet of manufacturing space; reduced inventory by 21%; inventory turns up 2X; gross profit up 8%; helped Jason to become a global leader in 90% of its niche markets.

Jason At-a-Glance

Topics in this Case Study

EBITDA ImprovementOperational Due DiligencePrivate Equity Value CreationEffective ExecutionKPI Selection & Management

At a Glance

Client

Jason Incorporated, a global diversified manufacturing company headquartered in Milwaukee, Wisconsin

Results

  • Increased profitability by 40% each year for three years
  • Recovered 200,000 square feet of manufacturing space
  • Reduced inventory by 21%
  • Inventory turns up 2X
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