Challenge (1) | Strategy and approach | Methodology used | The Outcome |
A Global industrial PLC acquired a €45m t/o European subsidiary supplying turnkey projects High quality but very poor profitability - in need of Turnaround Challenging IR environment in EU setting | Develop an international marketing strategy Focus on high value turnkey business with service elements Review vertical integration and manufacturing capability (make or buy decisions) Headcount and cost reduction programme | Full Business Process & KPI appraisal Structured the large contract competitive tendering process with clear risk strategies Improved project management methodology Focused the supply chain to improve margins | Turnover was increased by 55% over 12 months Headcount was reduced by 25% within 9 months O/head costs were improved by € 4m Reversed a -4.5% loss into a 7.5% profit within a year Company still strong & growing |
Challenge (2) | Strategy and approach | Methodology used | The Outcome |
£2.5 billion t/o plc subsidiary struggled to retain customer contracts through poor service and price pressure. Profitability under serious threat due to above. Competitors pricing at ‘loss leader’ levels to win contracts. | Carry out full review of contract SLAs, management quality and structure. Work with production management to review equipment and staffing performance. Aim to reduce cost of service and identify add value areas of business. Use of simple software tools to define capacity and scheduling needs. | Defined strategic vision and gained Executive buy in. Identified key management position changes, defined new roles and filled vacancies. Developed and introduced new processes, procedures and KPIs with existing management team. Communicated the changes to all those affected. | £1.0 m initial savings from staffing and equipment reduction. £2.0 m further savings from site consolidation. Service levels improved by 50% to 98% on time delivery in 4 months £50.0 m of contracts successfully re-tendered over next 12 months. |