The Situation

The client, an independent manufacturing division of a larger consumer goods company was struggling with decreasing volumes from their main client. Because of this, the owner was given more freedom to look for alternative ways to generate more revenue. There was a prevailing mindset that the main client and owner called the shots and there was not much to do to change the situation, and this resulted in a culture of helplessness when facing challenges.

The Task

The main task was to develop a new business strategy with clear mid-term goals on sales and volumes. We also looked beyond the 2-3 year time frame to show the owners the real potential of the manufacturing group. A key point was to move away from the current constrained mindset and install management empowerment along with a belief in that substantial growth was possible with new customers.

The Action / Approach

At the beginning, the project leveraged a pre-determined set of goals for the mid-term, and used few ideas already on the table. To make the new strategy credible and acceptable, we worked to kept the project very simple and digestible, including clear visuals. There was initial success with external customers. It was important to highlight early wins to ensure the audience that the journey already started and the new strategy will accelerate and capitalise on existing achievements.

  • Visualized the results to date and started with the end game in mind, to install a mindset and a belief that it was indeed possible to double the sales.
  • Identified and prioritised new ideas and opportunities that eventually became the strategic initiatives.
  • Defined and implemented a governance model to support and enforce the new strategy.
  • Obtained buy-in from the executive team and the owners
  • Incorporated the new strategy into the internal training program to make sure it got as widespread as possible.
  • Made an action plan and road map based on the strategic initiatives.

For an organisation with a inflexible mindset to adopt a new strategy it was essential to show that alternatives could work. One example was setting up a partnership with clear growth potential and start investigations into new sales channels. Both became a part of the strategy which was accepted and now in action. The strategy also included a number of operational initiatives to reduce cost and improve cash flow.

The Result

The outcome was not just a new strategy and plan, but also a new mindset for the organisation. We were able to instill a belief that there was a way to grow in new areas and ways. There was also a new clear vision that the internal training channel remained a valid way to communicate across the organization.

Value was delivered by;

  • Positive mindset change
  • Improved business agility and ability to rapidly respond to change and opportunity
  • Actionable roadmap to deliver growth and innovation
  • Clear growth goals for the group; with a long-term vision to double the volumes, and the way to get there.
  • A partnership with another group with clear sales objectives (+ 5% sales growth projected)
  • An Industry 4.0 project for the factories leading to substantial cost reductions

Pains relieved included;

  • Unclear business strategy and expectations
  • The disconnect between culture, mindset, and future vision
  • Misaligned goals between areas and between group and owners
  • Non-harmonised priorities

Focus In On: Responsible for Innovation

New Areas of Value:

Enabling competitive differentiation and increasing market share

More consistent and sustainable profitability and business growth

Enabling positive behavioural change

Improved business agility and ability to rapidly respond to change and opportunity

Effective delivery against financial targets

Viable, scalable and actionable roadmap to deliver innovation and change

Improvements around:

Unclear business strategy and requirements

Disconnect between culture and future vision

Misaligned goals across business and silos

Relevant Business Perspectives

Practice