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    What Was John Connelly's Role in CCS As A Leader?

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    John Connelly played a significant role in turning around CCS from near-bankruptcy in the late 1950s. Under his leadership, he reduced costs through layoffs and operational efficiencies. He also reorganized the company into a leaner functional structure and gave plant managers more accountability for profits. Connelly then pursued an international growth strategy through expanding product lines, distributing nationally and heavily investing abroad, which led to significant profit increases and financial stability over the following decades.

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    What Was John Connelly's Role in CCS As A Leader?

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    karthikawarrier
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    John Connelly played a significant role in turning around CCS from near-bankruptcy in the late 1950s. Under his leadership, he reduced costs through layoffs and operational efficiencies. He also reorganized the company into a leaner functional structure and gave plant managers more accountability for profits. Connelly then pursued an international growth strategy through expanding product lines, distributing nationally and heavily investing abroad, which led to significant profit increases and financial stability over the following decades.

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    John Connelly played a significant role in turning around CCS from near-bankruptcy in the late 1950s. Under his leadership, he reduced costs through layoffs and operational efficiencies. He also reorganized the company into a leaner functional structure and gave plant managers more accountability for profits. Connelly then pursued an international growth strategy through expanding product lines, distributing nationally and heavily investing abroad, which led to significant profit increases and financial stability over the following decades.

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    What Was John Connelly's Role in CCS As A Leader?

    Uploaded by

    karthikawarrier
    John Connelly played a significant role in turning around CCS from near-bankruptcy in the late 1950s. Under his leadership, he reduced costs through layoffs and operational efficiencies. He also reorganized the company into a leaner functional structure and gave plant managers more accountability for profits. Connelly then pursued an international growth strategy through expanding product lines, distributing nationally and heavily investing abroad, which led to significant profit increases and financial stability over the following decades.

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    What was John Connelly's role in CCS as a leader?

    Connelly was the driving force behind CCS’s dramatic turnaround, and that it was his
    ambition and determination that kept the company on the road to success. Under his
    leadership, CCS was rescued from a near-bankruptcy in 1957 to become one of the most
    profitable firms. He achieved a 1646% increase in profits on a relatively insignificant sales
    increase by 1961. 

    Connelly played a significant role in the below short term reorganisation of CSS and
    developed strategies that became hallmark for next 3 decades.

    A. Short Term Reorganisations:


    - Reduced headquarter staff by half to reach lean force of 80. (Reduced payroll by
    24%)
    - Removed the paternalistic culture of the organisation and returned the company to
    a simple functional organisation
    - Discarded divisional accounting practices, and eliminated the divisional line and staff
    concept. Accounting and cost control was performed at corporate level instead of
    individual plant level.
    - Disbanded CCS’s central research and development facility.
    - Established managers as “owner-operators”, giving plant managers additional
    responsibility of plant profitability, including allocated costs. This brought more
    accountability in managers. Plant managers were made responsible for quality and
    customer service
    - Reduced debt mainly through inventory reduction and liquidation.
    - Introduced sales forecasting, new production and inventory controls.

    Connelly followed a no-nonsense, back-to-basics strategy. He moulded CCS to follow


    policies of operational excellence, cost efficiency, quality, and customer service.

    B. Strategy
    - Specialised product lines – Enhance existing product lines built around CCS’s
    traditional strengths. Concentrate on specialised uses and international markets.
    - Expand to national distribution - 26 manufacturing plants spread around the country
    that would not only serve one customer but several at the same time.
    - Invest heavily abroad.
    - International growth in developing countries - Eg: He offered crown-making
    capabilities in Africa while they were expanding to help them with industrialization.
    62 foreign plants by 1988 generated 42% of sales and 54% of operating profits.
    - Started Nationwide Recyclers, Inc. as a wholly owned subsidiary – became top 4
    aluminium recyclers in the country.
    - Discontinue cash dividends & repurchase stock – Reinvest in new technology and
    machinery instead of paying dividends. Debt-equity ratio decreased from 42% in
    1956 to 5% in 1986.
    - National management – Local people understood local marketplace better.

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