Transformation, Turnaround of a National Manufacturing and Distribution Business
The newly appointed Managing Director retained MAT&D to assist with the planning and implementation of his first 100 days.
The initial focus was on improving their cash flow position by addressing their Accounts Receivable collection issues. By engaging with customers to understand how the business was performing using a value curve approach, it helped to re-shape the strategy
MAT&D were retained to work closely with the Managing Director and Executive Team to transform the business. The review of the current organisation structure identified the opportunity to reduce the silo-nature of the business, and consolidate the support services using a shared service model. Once the key criteria of the customer value proposition was better understood, the review of their current information systems focussed on their CRM (Customer Relationship Management) system. The redesign of the Order to Cash process removed many non-value added activities and identified a need to improve the number and quality of Accounts Receivable staff. The suggestion by MAT&D to adopt Balanced Scorecard reporting for the business, commenced with the development of a corporate scorecard for the Board. This was so well received by the Board that Scorecards were developed with the Divisional General Managers, and the organisation was committed to cascading them down to the middle managers.
The focus on optimising the value proposition to customer / markets and ensuring that the Order to Cash process worked more effectively addressed their working capital issues. The new shared support service structure and Balanced Scorecard helped the new Managing Director to align his management team, and the organisation to his priorities and place his stamp on the business.