Six years ago, the executives of a North American engineering business realized the company’s earnings momentum had stalled. Shareholders were restive, and the board was pushing to set a new growth trajectory. The CEO and senior colleagues responded in a logical and determined way, embarking on what proved to be a Herculean and seemingly successful effort to transform the business. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by more than $100 million, and its cash position improved by $150 million (both of these figures were higher than the original targets).
