Privately owned company
The business had acquired another – doubling in size. The acquired business had less value than had been thought and expected sales did not materialise due to over-stocking of key customers in the 6 months prior to acquisition. This created a significant cash crisis – and at the point of engagement the business had 6 weeks of cash left.
Working with the board and senior managers we created a simple and clear 3 month plan focused on cash conservation and survival. This was successful and created the time to develop a 3 year strategic plan. The plan was developed on the principals of the Balanced Scorecard. To implement the strategy simple plans and scorecards were created with the functional teams and responsibility shared for delivery of objectives. One of the most successful elements of the plan was separating the account management and sales functions so that the majority of the team focused on driving revenues in the 1-2 year period with 2 senior sales people focused on securing revenues that would ‘land’ in 2-3 years. This simple strategy resulted in a very substantial pipeline of new business – and new product development opportunities.
The business recovered, sales and profitability grew and the company was sold 7 years later for over £16m, to a multi-national.
The benefit of an experienced and ‘disconnected’ perspective in a time of crisis helps to develop a range of strategic options. It also brings energy and capacity to help drive change – alongside the executive leadership.