It’s transform, or wither, in today’s business environment, with multiple transformation triggers resulting in simultaneous pressures on you, your team and your bottom line. “We are living in interesting times, with multiple transformation triggers all present at the same time, all equally intense,” says Robert T. Vanderwerf, Transformation Strategy Leader, KPMG LLP, and he refers specifically to a tipping point in globalisation, a major slowdown in Western economies, significant shifts in technology and energy costs, and the challenges of regulatory compliance. “When four or five significant drivers are changing at the same time, the business environment becomes highly complex,”
And many organisations simply cannot cope. We’ve seen it countless times before. In fact, here are just a few examples where our team has been called in to help. The results were not only transformational – but most cases – overwhelmingly profitable too.
Transport for London, and the London Underground realised that they needed drastic improvement at their refurbishment site in Acton after a lack of performance resulted in unnecessary delay and misappropriation of critical repair parts and refurbishment resulting in major line downtime. Transport for London realised that apart from an improved parts and production system, the Acton site also required a critical culture change and a development of ownership amongst its employees and management structures to make the entire process smoother and more efficient. The business needed to implement a reliable production line that was able to process refurbishments and repairs quickly, with the right parts, with the least amount of waste, and with the smallest potential impact on the lines. In 4 years, the business saw profitability grow from negative profitability and increase by more than 8 times, yielding substantially more profitable results at the end of the project. The number of days lost due to lack of parts or production line issues decreased from 105 per year down to 7, seeing the through-put of critical refurbishment working faster and smoother – ensuring minimal downtime on the lines and lack of parts / supplies. Client service improved substantially and deliverable results and expectations exceeded.
General Motors realised that the role of their suppliers were becoming increasingly important as parts & systems could represent over 50% of the value of car they were producing. Throughout their supply chain, parts & systems suppliers were graded into A, B and C groups according to performance on quality, reliability & cost. General Motors realised that the worst performing group (C) represented 2.6% of overall supplied parts at the beginning of 1996. The client objective was to reduce this to 1%. Based in Germany for this project, the project team was asked to step in and help General Motors achieve this target. The results started being realised almost as soon as kicking off this project, with a delivery of significant quality improvements within a period of 2 months. On project completion, the results had been better than expected with C-class parts having been reduced to <0.5% of all parts supplied. The outcomes saw significant savings for General Motors of around 35,000 Euros per supplier. As a result of the success rate, the programme scope was extended to cover an even larger group of suppliers of 150+.
Energis Communications (Now Cable & Wireless Communications)
In 2003 Energis was the UK’s third largest business-to-business communications company with a turnover of £750 million. Over-expansion lead to a debt-for-equity swap by the eight main banks; Archie Norman and Jon Pluthero were appointed to lead a turn-around. They appointed five directors to grow profitable sectors and generate a valuable order book in preparation for a trade sale / merger – Hardy Giesler’s remit was the Infrastructure Sector, covering Utilities and Communications. Under his leadership the team increased the revenue run rate from £42m to £85m in the first year, whilst retaining strong margin. He also delivered more than £500 million of new orders, including the outsourcing of BBC Technology – at £350m this was the company’s largest win ever. By successfully changing the engagement model with Systems Integrators (SI), an important new route to market was established. Other blue-chip clients added included National Grid Transco (NGT) and RWE.