Business Strategy Development and Plan Execution
Problem
For an Australian manufacturer of innovative plastics products for mining and aviation industries, we were engaged to drive a strategic planning process to future proof their business. Our analysis captured opportunities, risks and greater governance and risk management structures to support management in delivering growth for the company.
The business had become too dependent on the Directors who were involved in all aspects of running it. After experiencing a 35% drop in sales during the GFC, the business had plateaued for the next five years. Furthermore, selling margins were being affected by price pressure from key clients. Although many growth opportunities had been identified, most of them were not delivered, and sales diversification plans were not being executed.
Underperforming employees were not being effectively coached or managed, and communication from leadership was a significant gap. Additionally, many business processes and governance structures were loose or missing. Without a significant change, the business risked stalling, being outmaneuvered by a competitor, and not optimising value.
Solutions
- Developed a comprehensive business strategy.
- Implemented a business cycle structure including Directors’ meetings, management meetings, sales meetings, operational meetings, etc.
- Routine staff communication sessions implemented.
- Simple sales process and sales pipeline management tools developed and implemented.
- Executive coaching with the Directors commenced.
- This resulted in the business implementing new processes, making changes in organisation structure, position descriptions, job goals and a revitalisation of performance management.
Outcomes
The company experienced an improvement in profit and cash generation due to increased sales growth and cost reductions. With clearer business leadership roles and better communication among stakeholders, the directors are now spending less time working in the business. Stoke also introduced the directors to an expanded network that includes potential new customers and government funding bodies. Additionally, a professional business case was developed for exciting new innovative growth products.
The investment in Stoke Consulting yielded exceptional returns:
- Payback Period: The engagement paid for itself in just 4 months.
- First-Year ROI: A revenue growth impact of $3.5M in the first year.
- Long-Term Value: The business grew from $5M pa to $20Mpa over the following 4 years, with strong continued support from Stoke Consulting.
Could your company benefit from working with Stoke Consulting? Contact us today.