Case Studies
Case 1.0 Added Value Design
In this case study the client and their customer are anonymous, but the situation is an actual event in which the client was led to a solution that retained their customer and grew their business with them.
The Concern
After many years of suppling their customer, the client was told that their product was no longer competitive and that they would lose over 500,000 pcs per annum in the next 24 months.
This would be a significant loss for the client. Not only was this a large value project for them in financial terms, but the volumes also if not replaced would add significant overhead to their existing high capitalised fixed overheads and potentially put their operations at risk.
It would also open the door for their competitor, at a time when market forces where evolving fast.
The Solution
The product was mature end of life technology.
We helped the client retain the business by developing a newer technology solution that integrated other system functions that were not previously included in their initial product.
This would increase the product price to the customer, so how was this value proposition sold?
The old product was developed as a X-functional team, so the client set out years before believing the business wouldn’t change.
This case study highlights the benefits of taking a systematic or bigger picture approach to design.
The Added Value
We were able to show the client and their customer that integrated existing functionality from other modules into the product could save net c$50 per vehicle for the customer.
The client had added features and functionality, for sure this would cost more, but leveraging synergies from the electronic design, a major part of the additional functionality could be created in software, not hardware.
The client retained the business with their customer for another 6 years, increased their margins and value, whilst delivering for the customer a total material cost saving, a reduction in assembly cost/time and reduced vehicle weight and in field quality concerns.
Case 2.0 Targeted Acquisition
Under construction.
The Concern
Our client was a well-known global corporate that was preparing to deliver an IPO in just over 24 months.
The board of directors of the soon to be former parent company and the directors of the spin off entity realised to be a success, a number of strategic tweaks would be required.
We were approached in the strictest of confidence to undertake a search for the ideal acquisition that had to happen, including integration within the next 24 months.
The Solution
This project was clearly strictly confidential as it potentially involved public companies.
We met with the CFO and Divisional Director and specified what were the needs, wants to create a “strategic acquisition filter”. The client was seeking:
- New Materials Technology.
- New Manufacturing Technology.
- Access to new customers.
- Incremental regional growth.
Working with the clients, we created a template that prioritised the above, but many other business attributes. Working closely with the client we build a model that aided the selection process within 6 weeks.
Enabling fresh eyes evaluate in simple form, and enable fast business critical decisions.
The Added Value
After considerable study and research, the strategic filter delivered two scenario’s which score highly against the given criteria.
In total 8 businesses were evaluated, and the filter had simplified the selection process. Not just on financial aspects, but in terms of the short-, medium- and longer-term strategic objectives. The driving force behind the purchase.
This analysis and search led to the c$0.5bn acquisition of an adjacent business unit.
This project was undertaken over two decades ago, those initial synergies are still in play today and that combined business successfully IPO’s and subsequent development has delivered $billions in the years to follow.
Case 3.0 Price Management
Here we look at, what we’ve always done, can’t be that bad, surely? The culture of price management, especially when it gets in the way to making your bottom line.
The Concern
Pricing methodologies ebb and flow like the tide. This is one of many examples on how you need as a business to manage the tide.
A client had successfully grown their top line sales over a number of years, however gross margins and EBIT was struggling to a point where they were doing more for less and putting the business at financial risk.
In this case it was found that the problem was how prices were given from sales to customers.
It was found that as sales personnel knew the manufactured costs, they would typically go to market with a cost up approach, only to be beaten back by the customers.
The Solution
This is often a more complex topic than face value. Therefore, it is always recommended that a deep dive and x-functional approach is taken.
A proposal was made to move from “mark up” to discount down.
Over a period of 3 months a significant cultural change took place across the business.
The argument of the market price is what is, in itself often doesn’t apply.
Pricing is wholly dynamic.
For example, a bunch of roses are always more expensive on February 14th, but the get much cheaper around 5:00pm!
The Added Value
By removing costs from sales personnel and providing them with a new pricing tool, the business increased its gross margins from c25% to c40% in 18 months.
Clearly there are always legacy contracts in play, market forces and culture.
What the business found, as it improved its manufactured costs, through own investments, these were now yielding returns, where previously this had flowed straight to the market.
We have had many years of pricing global pricing experience. This case like many others is dynamic and should not be assumed to always be the answer.
Case 4.0 Long Range Planning
Under construction.
The Concern
From time to time, you meet a family-owned business that believes leading a global manufacturing business is best served by utilising an annual budget.
The business argued that doing a 5-year strategic business plan was not necessary as “we’d done them in the past and they don’t work!”
The global business was regionalised, lacked structure, outdated capital equipment, and had already seen one region collapse.
The Solution
Working with the senior leadership team, we identified a common vision, captured regional market forces, analysed market trends, and evaluated their aspirations.
Engaging the senior management team, agreeing how they would like to see the business evolve, globally and then regionally, by providing a clear strategic vision, a set of strategic objectives. Globalising a spend a commit schedule.
We were able to build a comprehensive and structured plan, approved by the board.
The Added Value
Having a clearly defined long term plan, tested by “fresh eyes” can build the confidence in your leadership team to get on and deliver the plan.
Showing your subordinate team’s that there is a longer term plan, that concerns felt are scheduled for improvement, that we are re-investing as deliverables are achieved not only keeps the shareholders happy, it’s great for your bankers, as well as your team, there is no better way to motivate your team by having a clear vision and plan to get there, where they can see their part to play too!
Case 5.0 Lean - Material Flow
Under construction.
The Concern
Many manufacturers as they grow, have the competing forces of cash flow and service.
Many operations tend to overcompensate for supply and demand, putting cash at risk, by building stockpiles of inventory to be flexible as sales grow.
One business continued to batch assemble, leading to unbalanced workflow and inconsistent service levels as markets grew as well as countless levels of WIP scattered across the operation.
The Solution
It was evident that the business had not considered how it could improve material flow through its operations, or how to reduce WIP/buffer stocks.
By using a simple gravity feed line and sequential workstations. WIP could be reduced, and floor space optimisation improved.
Allowing operators to work in sequence created a team approach to production, reducing complex work to small simpler bites. It also reduced time taken by each operator to recover materials.
The Added Value
Here rather than have different production workers built at their own speed, the gravity fed line created a balanced workflow, where workstations became balanced.
Operators were now rotated routinely to change the monotony of the workplace, but it also enabled new starters to join the process and not have to learn the whole assembly process.
Floor space efficiency, WIP and MCT’s improved, maintaining consistent levels of service, quality and improving profitability.
Case 6.0 Getting the best from CRM
Under construction.
The Concern
Too many companies invest time and resources into a great CRM platform.
However, many never see a genuine return on this investment, why is this?
Part of the problem is that sales leaders don’t always know what they want CRM to tell them, it’s sort of known in their heads but they find it difficult to bring this out of their CRM implementation.
The sales team then fight the business every way to avoid what they see as demeaning to their profession!
The Solution
Firstly, you need to scope exactly what it is you want from the data you are now collecting.
You need to get what the sales team need to make their life easier and improve their success rates.
This typically requires value added dashboards that provide the business an indication of sales pipeline, sales/client activity and where value can be created for the customer, the sales team, and the business.
Keep it simple (to use, to analyse and to integrate).
The Added Value
A dynamic integrated “used” CRM platform will always deliver.
The key is to get the users to see the value for them, that’s your sales assets. If they don’t see value, they will simply not use it.
With real time dynamic information, a salesperson’s life gets far easier.
Integration and usability are key to success, along with great client feedback (positive and negative).
Case 7.0 Evolving Sales
Under construction.
The Concern
It’s not uncommon for a business to grow successfully for several years or decades based on, it’s always worked this way!
As products have a “life cycle” a business model can also have one.
A client had tremendous success with a particular product group that was sold typically to female consumers for the home. Year over year their sales hadn’t grown.
They needed more momentum but lacked capital to invest in new material technologies.
The Solution
Working with the business, understanding how they went to market, what was currently “addressable” it was clear that their addressable market was missing a demographic grouping!
A new brand was created to target the male home buyer, in addition to the standard female buyer.
This new segment required a new brand, a new DNA, it required a new approach to marketing. Whilst timely, this isn’t so capital heavy and relatively simple to do.
The Added Value
Looking at a business that has always done what its always done, the obvious is sometime hard to see. Businesses can easily be “blindsided” by history, their own history.
When you know what you know, but you only have a single market sector experience can sometimes prevent you seeing the obvious!
This new brand, not only grew a new sales channel, it enabled a simple evolution from existing mature products to new product groups, opening many new market opportunities, without considerable capital investment.
Case 8.0 Change Management
Under construction.
The Concern
“We’ve always done it this way”, it’s in our DNA, it’s who we are!
To many companies and their teams fall into this trap. Look at us we got here, didn’t we!
Change management, is one of the hardest challenges in business. Getting this wrong can destroy any strategy or tactical plan.
How do you deliver change when it’s not wanted, this has been the case in a number of projects.
The Solution
Leadership must accept that not all staff wish to come on the journey with you, get this early and you have a chance of success. Too much energy is spent on those who simply won’t adapt.
Focus on the early adopters and the 60% who are undecided. This is your audience; this is who you are needing to influence.
Be transparent, logical and professional. Deliver change with clear vision, with empathy and explain the benefits as well as the risks, be honest.
Ensure those on the journey with you buy into the benefits, if there aren't any, you shouldn't be making change in the first place!
The Added Value
The sooner you get most of your team to adapt to change, the better it is for all.
Too many businesses spend endless resources on those who simply won’t budge!
A well-executed change can prevent a crisis, where everybody losses.
Seamless change can drive your business through all sorts of market “storms”, delivering financial benefits and improve your employee motivation factors, do it as a team, with strong and clear leadership.
A dynamic well led business, with clear strategy, tactics and leaders who inspire can command this space and deliver very successful businesses.
We need your consent to load the translations
We use a third-party service to translate the website content that may collect data about your activity. Please review the details in the privacy policy and accept the service to view the translations.