1. What was the situation pre'93 and what were the fundamental changes introduced by Brian?
Crown Point Cabinetry, founded in 1979, supplies high-end custom kitchen cabinets throughout the US market taking on the principles of quality and service. This family owned business, under the leadership of its founder Norm Stowell, was achieving growth in revenues despite the fact of competing in a highly fragmented industry (over 5,000 manufacturers) and a very strong reliance of the extensive dealership network. However, even though revenues were growing the company’s bottom line was not performing as wanted. Furthermore, other factors related to the business were seriously compromising Crown Point’s capability to perform at the desired levels.
At this point in time (prior to 1993) Crown Point’s working environment had much to improve. The relationship of management with the employees was described by many of the latter as “horrible”. The effects that this relation had were devastating. 300% annual employee turnover and out of control absenteeism on the employee side. On the management side all the measures put in place to solve the issues were counter productive and as these kinds of penalties tend to do, they killed creativity from the workforce. This environment encouraged the employees to do the bare minimum. These tensions all translated in the biggest problem of all. The company was being unfaithful to its core principles as poor in-process quality control was augmenting.
It was in 1993 and with this situation that Brian Stowell took over his father’s position as CEO of the company. Brian immediately realised that changes needed to be done in order to be able to guarantee the success of the company. Several were the priorities that had to be taken in hand in ...