Tag Archive | "management"

Business Sense: Which of your strengths will become your weakness?

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Business Sense: Which of your strengths will become your weakness?

Posted on 07 September 2018 by cradmin

By Kathleen Teodoro of Moraware

Managing growth

Fabricators rarely call us to purchase software before they’ve started making money selling countertops. They’re usually already running a successful business, but something has changed. Often, that something is success itself. They’re growing, entering a new stage in the life-cycle of an organization, and they must adjust. We help with the software adjustments, but the staffing, leadership and process adjustments are often the most daunting.

Lifecycles of an organization

I recently attended a workshop where we spent some time discussing a model of organizational growth developed by Edgar Shein. Like many other models, it focuses on the experience of the founding leader, but it can be useful for everyone in an organization to reflect on these stages of growth. Why? Because what was helpful while you were building a company can be harmful once the business matures.

Shein’s theory in a nutshell

Organizations have different leadership and staffing needs at different stages of development. Each of us is most comfortable in certain stages. Our strengths in one stage often become detrimental in another. We must evolve our skills, get help and/or revise our vision.

Take a look at the chart below and consider your own organization.


What stage do you think your organization is in?

Where are you most comfortable?

Can you think of anyone in your business who might be anxious because his role has changed?

Informing your growth

Understanding how these stages impact your team can be useful as you consider additional investments in hiring, training and technology.  Before you hire someone new, make sure you know how your needs have changed. Maybe you used to hire generalists who could do a bit of everything, but now you really need a marketing specialist. Maybe you have somebody on staff who could fill that role with a bit of training.

Or maybe it’s time to invest in software that will help you Systemize your processes so you can establish and enforce standard operating procedures.

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Caesarstone Plagued by Production Problems

Posted on 16 November 2017 by cradmin

After a couple of huge stock losses in 2015 and the appointment of a new CEO in 2016, problems continue to plague Caesarstone in 2017 – this time in production. Problems in production have so far led to lower than expected profit margins and a slew of management changes at both the company’s U.S. and Israel facilities.

During the third quarter of 2017, Caesarstone yielded nearly $155 million in revenue and a gross profit of only $49.7 million, 15 percent less than the third quarter of 2016.

“Third quarter revenue increased by 7.2% to a new record of $155 million,” said CEO Raanan Zilberman. “Gross margin was far below our expectation as a result of challenges related to our manufacturing performances.”

According to Zilberman, the downshift in production was caused by a change in the company’s product mix, which now uses two formulas: one for premium and one for differentiated. This lead to longer cycle and setup times for each model. Caesarstone claims that this change enables the company to “maintain a premium position in the market and our prices” and that the lag is addressable with the right management.

At the U.S. plant, poor performance was attributed to a combination of extending the range of offerings to high-end products, which require longer to manufacture and having to close for a week because of Hurricane Irma.

“I have decided to appoint a new VP of global operations,” explained Zilberman. “I have already placed a new leadership team in Richmond Hill, including a new plant manager, a new operation manager, a few new department managers and a team of technical and manufacturing experts, all coming from Israel.”

At the Israel facility, changes began in October when two new plant managers and a production manager were hired. The new team will be rotated to “enhance the managerial structure and capacity of management.”

“We are starting to implement a series of improvement process to shorten the cycle time and to minimize the idle time,” Zilberman concluded. “Those improvement processes can take some time, but if we will implement them correctly, they will yield the expected results.”

In addition, to better meet demand, Caesarstone has been utilizing some OEM production for basic SKUs under strict specifications and a quality assurance process.

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