Robert decusati structuring companies for performance

Robert Decusati - Structuring Companies for Performance Success does not happen by chance; companies have to create the necessary environment and circumstances. Robert Decusati has demonstrated the ability to do just that. Here he picks out what he has found to be the key steps on the road to profitability.

Step 1: Seeking Out Opportunities to Reduce Costs As Corporate Controller America at KlocknerPentaplast, Robert saved $35,000 by negotiating lower property taxes. He got rid of brokerage commission on sales of scrap, saving another $18,000 and found $23,000 more by better expense reporting. An R&D tax credit study in Quebec cut taxes by $17,000, andelectric brownout grid participation brought a cash rebate of $80,000. None of these things happened by accident – Robert makes the point that, to implement a cost reduction, you first have to find where the opportunity is, and finding it means looking for it. A cash saving opportunity may be lurking in any line on the P&L; seeking it out is management’s job.

Step 2: Choosing Where to Invest Robert’s strategy at Premier Top Solutions, the 16-year old fabricating company he purchased on his own account, was to invest capital to improve manufacturing productivity, smooth throughput and get products into the customer’s hands faster. Robert DeCusati replaced an old IT system and introduced new reporting which allowed him to raise prices where it would bring most benefit while at the same time reducing the risk of customer loss.

In cases where it was necessary, he upgraded the quality of staff. His reward was being able to sell the company at a profit 27 months after buying it.

Step 3: Getting Accurate Information Quickly Incorrect information is harmful because it leads to bad decisions. However, accurate information received too late for action is no better. As Corporate Controller America at KlocknerPentaplast, Robert set and achieved the standard of having EBITDA figures available by the third working day. The SAP BCS consolidation package loaded later the same day and the full analytical package two days later.

Step 4: Structure Sometimes Needs to Change The organizational structure that worked at one time may not work always and it is management’s job to constantly question the way the company is set up. As Manager, Restructuring at Rubbermaid’s Maryville TN plant,Robert Decusati took charge of a $22 million restructuring program that involved the discontinuance of 750 SKUs, vendor consolidation and lean manufacturing implementation.