Project Description

10 years of continuous losses converted into profits within 2 years of new management takeover

This is a classic case of one of the Company in an overseas country which was under losses almost all the years since their inception in 1994. Ownership changed in 2003 when one of the leading Indian MNC (Parent) acquired one of the Subsidiary Company. The Market was dominated by 2 MNC companies and the Subsidiary Company had very negligible share. The new Owners took charge and objective was to increase revenue and deliver profits soon.

The Parent decided to replace the old management team with a new one. Once the new management took charge, it could feel that there was a huge motivational issue among the team (white as well as blue collar) across all functions. It was obvious as business was not performing, consequently increments could not be given, blame game among the team members, negative energy, lack of ownership etc. Coupled with this the organisation structure also was not very robust.

How did the transformation happen?

  • Everyone in the company felt they had developed the best of products & benchmarked with competition too. But when one met the customer, he had different views about the quality of the product. The management felt the sales team was not capable.
  • The Company then decided to once again benchmark the product quality vis a vis competition and it starkly revealed that the benchmark was actually not in line as everyone thought. The Company once again started benchmarking activity and within 6 months, the new product quality was revealed which was in line with competition
  • The entire team, white collar as well as blue collar, were invited to a one full day workshop conducted by the HR to ensure all the negativity is removed. Blue collar getting invited was unprecedented as no company invites blue collar in such forums. This also helped in bringing the entire team to one common goal. Everyone right from top to bottom was clear regarding the goal and action plan
  • Once the new product quality was established in the market, a series of influencer meets was conducted across the country and the volumes started growing at a high pace. Eventually one had to introduce round the clock customer service to ensure customer satisfaction at its best
  • The business grew so much that one had to start investing in expansion for the future!
  • All within the last 3 years!

Key Learnings

  • Always listen to the sales team as they are the ones who are in continuous touch with the customers & the market
  • Never underestimate competition. Do your homework always
  • Everything begins with proper product benchmarking and testing. One needs to identify the competition which one is benchmarking and ensure it is equal if not better
  • Never blame the team without having a first-hand view of your own
  • Last but not the least, there is always a solution for every problem/crisis. Never give up!