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Thumbnail image for product with reference number SMU-25-0019
New product
Published by: Singapore Management University
Originally published in: 2025
Version: 2025-08-05

Abstract

Established in 1975, Kinetic Solutions (KS) manufactured drives, devices that controlled the speed and direction of motors. In 2017, it was acquired by Japanese motors company Novatech Corporation (Novatech). Novatech aimed to be 'The global leader for everything drive-related', and had ambitious plans for KS. In 2018, the company hired Mateo Alvarez as Regional Sales Director to double its sales in two years. This target excited and terrified him as the company was suffering a negative 40% growth rate when he joined. After visiting KS's South and Southeast Asian (SEA), and Oceania offices, Alvarez realised that changing the company's pervasive culture would take too long, and decided to start from scratch. The first thing that he did was to lay off all the salespeople across the offices. Next, he reprogrammed KS's company culture, reorganised operations, hired employees who embodied the new company culture, whilst pruning away the clients that he felt had been 'bleeding the company dry'. In three months, KS began seeing growth. By 2024, Alvarez had not only exceeded his contractual targets, but was promoted to Vice-President of KS's South and SEA, and Oceania offices. The company was seeing steady growth, had widened its geographic spread, and its employee morale reached an all-time high. As someone who actively sought out growth, Alvarez wondered if he could continue to instil the culture of passion and agility, as the company scaled new heights.

Time period

The events covered by this case took place in 2024.

Geographical setting

Country:
Singapore

About

Abstract

Established in 1975, Kinetic Solutions (KS) manufactured drives, devices that controlled the speed and direction of motors. In 2017, it was acquired by Japanese motors company Novatech Corporation (Novatech). Novatech aimed to be 'The global leader for everything drive-related', and had ambitious plans for KS. In 2018, the company hired Mateo Alvarez as Regional Sales Director to double its sales in two years. This target excited and terrified him as the company was suffering a negative 40% growth rate when he joined. After visiting KS's South and Southeast Asian (SEA), and Oceania offices, Alvarez realised that changing the company's pervasive culture would take too long, and decided to start from scratch. The first thing that he did was to lay off all the salespeople across the offices. Next, he reprogrammed KS's company culture, reorganised operations, hired employees who embodied the new company culture, whilst pruning away the clients that he felt had been 'bleeding the company dry'. In three months, KS began seeing growth. By 2024, Alvarez had not only exceeded his contractual targets, but was promoted to Vice-President of KS's South and SEA, and Oceania offices. The company was seeing steady growth, had widened its geographic spread, and its employee morale reached an all-time high. As someone who actively sought out growth, Alvarez wondered if he could continue to instil the culture of passion and agility, as the company scaled new heights.

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Time period

The events covered by this case took place in 2024.

Geographical setting

Country:
Singapore

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