Case study 1 - business restructuring
THE STORY
A business that had its roots in traditional manufacturing and remanufacturing with the Far Eastern cost and technology starting to change customers’ perceptions as costs of acquisition fell and replacement became a real alternative to repair.
The business itself needed new MIS and the investment in people hardware and software represented an opportunity to offer potential customers a cost-effective asset management solution, as well as enabling the business to improve its own controls and performance.
A number of global brand companies bought the asset management solution, presented a contract-based project management system.
This in turn raised the profile of the business and further enabled it to develop its contract management proposition for manufacturing companies.
OBJECTIVES & STEPS
1. To complete the Board, including Finance and Operations Directors.
2. To develop the management information to identify the appropriate KPIs.
3. Implement KPIs in order to provide the Board with appropriate information to focus on the improvement of:
- Gross margin
- Work in progress
- Inventory management
- Purchasing management
- Operations shop floor management
4. Analyse the position of the business in relation to the market in which it currently operated.
5. Analyse its generic strengths and weaknesses to identify related business into which it could move and develop a competitively differentiated proposition, at an affordable cost.
OUTCOME
The business has moved from a marginal loss-making model to a business three times bigger at sales level and double digit percentage operating profitability.
The Board has been able to attract a better calibre of manager as its customer base and profile has grown.
The business model has the ability to grow organically, as the knowledge of its customers’ business needs has become much deeper. It is also capable of proactively demonstrating new operating solutions that are more profitable to potential customers, and is now proactive rather than reactive.
HOW DID WE HELP?
- Recruitment of the Finance and Operations Directors.
- Introduced and worked with MIS consultancy and Board to define systems requirements.
- Worked with Operations Director on the scope and outcome of the operational review.
- Worked with the MD to understand the position of the business in its market and analyse its generic strengths and weaknesses.
- Engage the Board in developing future business strategy, focusing on competitive differentiation and enhanced barriers of entry for competitors.
- Support and assist in the recruitment of first tier management.