Case Studies
Transforming an under-performing business

Summary

Talk to employees, customers and suppliers, before you start!
Be clear!
Create a Transformation Plan and publish it!
What a difference a transformed business makes!
Build on success and keep the momentum going

Talk to employees, customers and suppliers, before you start!
The first stage in transforming any under-performing business is to talk with all the employees and asked them why they believe things are so bad. There is a need for frank feedback to feed into the new strategy - and besides, you will find out how much talent you have! Part of the transformation includes finding existing talent and working to develop their potential. Key customers must be canvassed to observe existing relationships and find out what customers like as well as dislike. Suppliers will want you to succeed and are a valuable resource in transformation strategy.

Be clear!
Poorly designed or non-existent business systems, numerous customer complaints, poor quality and awful service, were the main issues that came out of the first stage of the process. The challenge was not easy - but it was clear! Not surprisingly, sales were plummeting as well!


Create a Transformation Plan and publish it!
Quarterly Business Reviews - first with employees and later with customers and suppliers, became the bedrock of this transformation plan. Employees were encouraged to take more and more control of the business and their performance, together with management's was monitored and openly reported. Employee teams hired new employees and maintained self-discipline within the workforce,. Every employee assumed responsibility for waste levels, efficiency targets and good internal communications. Customers and suppliers were encouraged to talk directly to key employees. Inventory and stock levels were controlled on a Just-in-Time system, and operated by employees at the point of use. Suppliers and contractors became used to working directly with line operators. If you think management squeeze suppliers - try putting employees in charge!


What a difference a transformed business makes!
Within 12 months the employees had delivered on quality, and service levels were described by customers as outstanding! When the opportunity came to win a new large long-term contract, the employees were a major reason for winning the contract. When awarding the contract the customer said that price was not a differentiate between the short-listed supply partners - it was fabulous customer service, outstanding commitment and the enthusiastic workforce that made them decide to award it to the transformed company.

The business went on to win awards for global sales, employee participation, innovation, quality, and set industry standards in the competitive high technology sector. Above all, employees were able to develop, many moved on to senior executive positions, running their own divisions; some started their own successful businesses - everyone benefited from the transformation.


Build on success and keep the momentum going.
Four years after the transformation plan began, turnover had almost quadrupled, the business was highly profitable and the headcount had doubled. The business continued to prosper under new management which had been developed from within the business.


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