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.Â
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 outmanoeuvred by a competitor, and not optimising value.
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.
