Case Study - Distribution Company
Background
A mid-size, distributor of industrial products with locations throughout the Midwest was struggling to maintain sales and profit margins. The owners, a substantial private-equity firm with multiple investments across a broad spectrum of industrial companies, were troubled by management’s lack of a coherent strategy and the absence of agreed upon metrics to measure performance.
An initial discovery session was held with the company CEO and members of the leadership team. The discussion revealed that management had identified a substantial number of initiatives calculated to improve the business, but had not articulated a unifying set of objectives. Additionally, management had identified several key performance indicators, but had not determined how those standards related to achievement or measurement of progress. Finally, management produced a lengthy list of tactical “action items,” but there was no indication of how or even whether these items were prioritized.
Solution
MA33 Strategies was retained to hone the company’s focus, develop clear objectives, and establish meaningful benchmarks. The first step was to engage with selected key management personnel to develop a comprehensive SWOT analysis. The SWOT provided insight into the key internal and external factors impacting the business, as well as areas of agreement among the leadership team.
Following the SWOT analysis, MA33 Strategies facilitated a two-day planning session among the company leadership. The comprehensive SWOT analysis was shared with all participants prior to the meeting, and all were requested to undertake a variety of exercises in preparation.
One overarching weakness identified by the team was that the company lacked an identity. Considerable effort was devoted to crafting a distinct Mission Statement for the company that conveys to customers, employees and all stakeholders a succinct description of what the company does and how it does it.
Through frank discussion the team identified numerous areas that were in need of attention if the Company was to fulfill its Mission. These included the need to become more data-aware; improve inventory and pricing structures; rationalize compensation plans for the salesforce; enhance data hygiene; and segregate product lines.
Outcome
At the conclusion of the Strategic Planning Sessions, the company developed a series of objectives, assigned specific objectives to team members, and established completion dates for each objective. The team identified Key Performance Indicators by which it would measure progress towards each objective; and isolated activity metrics to be tracked and analyzed consistently.
All of these objectives were presented on a Master Scorecard assigned to the CEO. Individual Scorecards were designed for each leadership team member, who was given the responsibility and authority to deliver. And a process was designed to assure accountability among the team.
