In 18 months, we took this loss-making business with a staff of 284 to profitability with a staff of 110 through the following action:

• Removing top layer of management and replacing with smaller number of the best of second layer, resulting in lower management overhead, reduced staff requirement and reduced cost of sales;
• Re-motivating the sales force;
• Developing the profitable sale of central heating circulators in Japan from US$1.5 million to US$2.5 million;
• Overcoming many difficulties with labor unions and the labor inspectorate.

The company was sold to a major Japanese group who wished to distribute a complementary product using the same sales and support organization.