Caraustar Industries, Inc.

Charting a Course to Improved Profitability

The Challenge:

Improve company profitability by gaining management team alignment around a set of actions.

The Results:

  • Client improved from $100 million net loss to $45 million net income
  • Streamlined the business, shedding poor-performing and non-core assets
  • Shifted focus to those businesses where client could attain a long term competitive advantage. Launched new, differentiated products and invested in equipment upgrades.
  • Consolidated two divisions under one strong manager and reduced SG&A by eliminating low-value activities

Setili & Associates brought a new perspective to our business,
and didn’t just tell us what we wanted to hear. They gave us a process
to engage the management team in tough discussions, and to hammer
out a plan for moving forward. – Ron Domanico, CFO

What We Did:

  • Interviewed senior executives to determine where the greatest leverage points were for improving performance. Assessed competitor positioning and organizational structure
  • Planned and facilitated a series of meetings and exercises to
  • Agree on current and future sources of competitive differentiation and a plan to close the gap
  • Identify those businesses and technologies to invest in, and those to exit
  • Discuss options for restructuring the organization to improve effectiveness and reduce cost