Crisis Management – Case Study

The owner of a construction company stepped away from day-to-day operations, handing control to a relative. The company went from a multi-million-dollar surplus to a $500,000 deficit, struggling to finish jobs and maintain client trust.

Projects were consistently delayed or poorly executed due to lack of oversight and preparation.
Workers arrived without clear direction, leading to daily inefficiencies and costly rework.
The company’s financial health collapsed — going from a multi-million-dollar surplus to a $500,000 deficit.
Client trust deteriorated as deadlines slipped and job quality declined.
The owner felt powerless, as the mismanaging relative held key relationships but was driving the business into the ground.

Projects were consistently delayed or poorly executed due to lack of oversight and preparation.
Workers arrived without clear direction, leading to daily inefficiencies and costly rework.
The company’s financial health collapsed — going from a multi-million-dollar surplus to a $500,000 deficit.
Client trust deteriorated as deadlines slipped and job quality declined.
The owner felt powerless, as the mismanaging relative held key relationships but was driving the business into the ground.

The core issue wasn’t just operational failure — it was a complete breakdown in leadership structure, accountability, and communication.
The manager lacked both strategic oversight and day-to-day execution skills, creating chaos from the top down.
Teams were unprepared and unsupported, leading to a culture of finger-pointing and disengagement.
The owner had stepped too far back and no longer had visibility into the real conditions on the ground.
A leadership reset was needed — not just to fix operations, but to reestablish clarity, authority, and trust.

The core issue wasn’t just operational failure — it was a complete breakdown in leadership structure, accountability, and communication.
The manager lacked both strategic oversight and day-to-day execution skills, creating chaos from the top down.
Teams were unprepared and unsupported, leading to a culture of finger-pointing and disengagement.
The owner had stepped too far back and no longer had visibility into the real conditions on the ground.
A leadership reset was needed — not just to fix operations, but to reestablish clarity, authority, and trust.

Recommended the owner take back control and reestablish leadership visibility across the organization.
Designed a new structure centered around self-managed teams, with clear ownership and accountability at the project level.
Removed centralized dependency on the ineffective manager by redistributing authority and decision-making.
Developed a financial stabilization plan to fund ongoing jobs and restore client confidence.
Encouraged the owner to rebuild client relationships directly, reinforcing leadership presence and credibility.

Recommended the owner take back control and reestablish leadership visibility across the organization.
Designed a new structure centered around self-managed teams, with clear ownership and accountability at the project level.
Removed centralized dependency on the ineffective manager by redistributing authority and decision-making.
Developed a financial stabilization plan to fund ongoing jobs and restore client confidence.
Encouraged the owner to rebuild client relationships directly, reinforcing leadership presence and credibility.

The owner reengaged with the business, meeting personally with clients to restore trust and stabilize ongoing projects.
Strategic short-term loans were secured to ensure project completion and protect reputation.
The manager was transitioned out, and team leaders were appointed to oversee projects independently.
Clear expectations were set for each team, with accountability tied to project outcomes.
A simple internal reporting rhythm was established to give the owner visibility without micromanaging.

IMPLEMENTATION

The owner reengaged with the business, meeting personally with clients to restore trust and stabilize ongoing projects.
Strategic short-term loans were secured to ensure project completion and protect reputation.
The manager was transitioned out, and team leaders were appointed to oversee projects independently.
Clear expectations were set for each team, with accountability tied to project outcomes.
A simple internal reporting rhythm was established to give the owner visibility without micromanaging.

The company went from a $500,000 deficit to a $1 million surplus in under 12 months.
Projects were completed on time, with significantly fewer delays, revisions, or complaints.
Teams took ownership of outcomes, increasing efficiency and reducing management overhead.
Clients reengaged with confidence, leading to new business and renewed partnerships.
The owner regained control of the company and peace of mind, with strong systems in place and no dependency on any single person.

The company went from a $500,000 deficit to a $1 million surplus in under 12 months.
Projects were completed on time, with significantly fewer delays, revisions, or complaints.
Teams took ownership of outcomes, increasing efficiency and reducing management overhead.
Clients reengaged with confidence, leading to new business and renewed partnerships.
The owner regained control of the company and peace of mind, with strong systems in place and no dependency on any single person.