Reorganizing the family business
In anticipation of the developing situation at Shell Amsterdam/KSLA, I started a new maintenance company together with a couple of contractors of TBI-holding. It was all in vain, unfortunately, the deal went to another party. I took it as a sign on the wall to steer a new course with Smals B.V. Even though our contract was good for another two years and the family business' books showed the best results ever, I immediately started the restructuring of a technically oriented and customer service organization to a much more flexible, market driven company.

Business case: the restructuring of Smals B.V.

Foreseeing the loss of a major client in the nearby future, I had to prepare my company for this change. After more than thirty five years of doing business with Shell Amsterdam/KSLA and having fifteen of our people stationed permanently at their site, we need a new course.

In the spring of 1996, a scan of our organization was made. Based on the results we created a training program. First, we directed our attention to the management team of five, the forty other staff members followed later on. The assignment was clear: we need to leave traditional thinking behind and become a market and service oriented company.

Whatever we did, virtually no changes occurred. By the end of November, we organize an evaluation session with the entire management team in which we also present the strategy for the upcoming years. The feedback we get from the management team is rather disappointing and leaves me deeply frustrated.

In 1997, I decided to reorganize the company drastically. Three new divisions are created on the basis of product-market combinations. The role of the management team changes, some members of the team were replaced, and the staff is trained all over again. Regrettably, I had to fire three opponents, but by the end of that year we have a new and competent organization.

In 1998, the first of fifteen Shell technicians come back to our main office. The lump sum contract attracts new clients such as the University of Amsterdam, Stadhuis Muziektheater, several municipal departments of Amsterdam and Schiphol Airport. This way Smals B.V. has a better distribution of revenues and is no longer depending on a few major clients.

➢ Looking back at the events of 1996, I now realize that the family business still functioned extremely traditionally. It happens all the time that the management team boycotts change while both the layer above them (managing directors) and the layer below them (the staff) know it is time for a change. That's exactly what happened at Smals B.V.: middle management absorbed all changes like a sponge and did absolutely nothing to implement them.

➢ The reorganization of Smals B.V. turned out quite well, even though some changes were hard to push through. But then I realized it had everything to do with my father's presence at our old office in the inner-city of Amsterdam. A couple of senior technicians thought they could get away with doing what they always did, just as long as the "old guy" was there.

➢ In 1998, I decided it's time for my father to retire completely. One of the hardest conversations I ever had! It created the space we needed to accomplish the last changes in the process of reorganizing. Staff and clients that had been loyal to my father up till then, saw how the company had changed for the better.

➢ The staff component is hard to predict in a process of restructuring. People who seem to have picked up on the new course, drop the ball all of a sudden. And people you don't expect much of, step up to the plate. This can be frustrating at times, but also quite amazing in cases of unforeseen progress. Our warehouse clerk was able to design our project administration software, he had apparently done so at his sports club as well. And a technician proved to be a wonderful operations manager!