Case Studies - Business Strategy Consulting Services
Organizational Transformation and Post Acquisition HR Integration
Organization/ Business :
High Tech Pharma Grade Packaging and Research Organization
This organizational transformation project was implemented at a promoter driven pharma packaging research organization engaged in manufacturing of innovative packaging and research solutions for solid dosage packages. The client had acquired companies in UK and US to further its expansion plans and had also established a green field state of the art manufacturing facility in Singapore. The strategic intent was to become a solution provider company offering various products and services to customers at various stages of their business value chain through geographically dispersed global business units.
Transitioning from a single product local company to a diversified strategically aligned and cross-culturally diverse yet integrated Indian MNC.
- Managing business dynamics of the acquired overseas organizations while the business processes and HR systems at Indian Parent Organization were still at evolving stage.
- Building a sense of accountability, ownership and cohesiveness in cross culturally diverse team to deliver seamless solutions to a global customer base.
- Integrating workforce of acquired companies in US/UK, Green field plant at Singapore, existing Indian unit in to a cohesive workforce even as they were at different stages of evolution.
- Finally achieving projected business revenues, profitability and ROI targets to satisfy the global stakeholders while leveraging cultural diversity.
Consulting Solution of CerveauSys Strategic
- Vision, Mission and Values Workshops were conducted in parent as well as acquired companies for developing a unified direction, consensus and focus across organization.
- Balanced Score Card Initiatives were facilitated and implemented at Corporate and Business units in Singapore, U.S. and U.K. In collaboration with the senior official teams at respective locations.
- Global organization structuring exercise was conducted by creating efficient org structures for Business Units (BUs) with integration and alignment to corporate structure.
- In alignment with the Balanced Score Card strategic objectives defined at Corporate and BU levels, the detailed competency based job descriptions, KRAs and KPIs were formulated for all the roles across organization ensuring involvement and participation by BU HR teams.
- An Organization wide Competency framework was created integrating the business, functional and behavioural competencies to create culturally aligned workforce while ensuring development of BU specific core competencies.
- A Competency based recruitment and selection process was established to identify right talents across various levels and the process training workshops were conducted at corporate and respective Business units to ensure fair and ethical selection practices by recruiting managers.
- A Performance and Potential Appraisal process was established to evaluate employees based on their performance and career growth potential. This helped employee segmentation into various performance groups thereby ensuring specific improvement initiatives for each group.
- The company grew faster and in an integrated way with jump in revenues from 150 Crs. to Rs. 600 Crs. in 4 years.
- Recently acquired another company in Sweden to support its backward integration plans.
- Growing in terms of profitability and geographical spread of operations year on year.
Strategic Planning and Organizational Realignment
A multiproduct steel components manufacturing company having six manufacturing plants and global customer network catering to diverse sectors such as automobile, boiler & heat exchangers, energy, oil and general engineering.
A company started by like-minded young professionals had experienced speedy organic and inorganic growth since its inception. The growth in the past to a large extent was the result of many instinctive (but not consciously planned) high risk business moves which paid off well in short run. However the promoters had started noticing various symptoms indicating towards serious trouble brewing up in future. Revenues were stunting, losses were mounting, costs/rejections were rising, plans were not going ahead as per schedule, acquisitions were not bringing in the anticipated value and overall organization seems to have lost its track.
Consulting Solution of CerveauSys Strategic
- CerveauSys Experts carefully analysed the organizational data (vision, mission, values, key growth milestones, details of key products, major customer segments, competitors, key opportunities, threats, areas of strategic priority (people as well as growth matters). A focused group comprising of Top Management, key senior managers and employees were interviewed one on one to get their perspectives on various organizational performance aspects.
- CerveauSys Experts interviewed critical external key stakeholders (Vendors, Customers, and Investors etc.) to gather their observations, views and suggestions on organizational performance parameters.
- Key organizational business processes and process documents were observed and analysed to understand the process performance efficiency and issues involved any.
- The external environment analysis was conducted using the PESTLE (Political, Economic, Social, Technological, Legal and Environmental) model. Competition analysis was conducted using CerveauSys Industry research data and information available with client.
- A Strategy Development Workshop was conducted to discuss results of organizational analysis, brainstorm to finalize the organizational swot, business strategy and action plans. The top management team and key senior management team members attended the workshop after completing the pre-workshop preparations and team communication assignments to bring enriching perspectives for strategy development.
- The defined broad business strategy was translated in the form of clearly articulated strategic objectives using Balanced Sore Card tool. Key strategic initiatives were designed pertaining to areas of strategic priority (new product development, productivity improvement, infrastructure streamlining, entries in new geographies etc). Detailed action plans for implementation were defined with clear cut ownerships /accountability for results.
- A detailed Strategic Preparedness Analysis report submitted at the end of the assignment consisted many recommendations of critical nature. The root cause analysis resulted in finding many underlying issues that needed immediate attention (infrastructural insufficiencies, lack of systems process discipline, vague and contradicting directions, unclear/overlapping reporting lines, multiple instances of poor assets / capacity utilization, dead investments in non-core assets, opportunities for new product development and venturing in to newer geographies offering early mover advantage to name a few.)
This initiative provided specific findings in terms of improvement needs in highly critical areas for long term organizational sustenance.
- This initiative provided valuable grass root level well researched objective data to enable some tough decisions on strategically critical organizational matters.
- It also provided an opportunity to many internal organizational teams and managers to share freely their concerns, views, ideas with an unbiased, disinterested third party expert. This in turn generated a healthy and open debate, ideations leading to greater motivation and ownership towards implementing mutually planned initiatives and decisions.
- The organization though went through a tough time in implementing some unpalatable decisions; it is now on the path of more sustained and holistic growth.
Business Strategy Formulation and Organizational Change Management.
An over 45 year old social development organization having a nationwide reach and a mission of eradicating poverty through enhancing self sufficiency of poor farmers and tribal people living below poverty line. This organization with its dedicated focus has served over 4.5 million families living in 60,000 villages spread across 16 states of India with a committed workforce of over 4500.
The organization faced a challenge when the management decided to convert one of their major divisions into revenue based model so as to marginally reduce dependence on external funding and build self-sufficiency for growth and reach targets. Being an NGO it implied change in mindset and internal processes towards highly goal centric and commercially prudent ways of operating.
The major challenge was achieving greater self-sufficiency by building fair revenues from established programs, deploying resources optimally with an enhanced commercial acumen while retaining the precious organizational values and cultural ethos of a not for profit organization.
The social development organizations have a strong humanitarian focus hence focus on building revenues, commercial acumen/cost saving, target orientation tends to take a back seat. However unless we ingrain this focus in strategy, structures, people and processes now, survival and growth of organization will become difficult.
- Unless the changed strategy is owned and whole heartedly accepted by one and all, grass root level implementation in 16 geographies will be a distant dream.
- The new competencies, communication strategies and processes were needed to be established if the change was to be implemented effectively in such a large organization.
- How to build the futuristic competencies necessary to transform the organization into a commercially prudent, action oriented, self-sustained and culturally strong institution?
HR/Organizational Development Initiative:
- Our Experts met cross section of employees covering from top and bottom most levels. This was followed by visits to key work locations to observe work processes, grass root level interactions with the beneficiaries etc.
- A Mission workshop was conducted to build consensus and rally the team around the common cause for this division. An energizing mission was developed after addressing key concerns.
- The Balanced Score Card was implemented to define, articulate and communicate the strategic objectives for this division covering the change objectives, projects, performance expectations on financial, customer, internal process and new competencies perspective.
- The job descriptions of the over 30 senior leaders responsible for these change initiatives were refined to integrate the activities that they would need to perform in their strategic roles.
- A psychometric assessment of their competencies was done to find out the strength of these key managers so that the profiles and change management projects can be structured to build on their strengths and relevant organizational support would be rendered where needed.
- A comprehensive organization wide competency framework was created as a base for all organizational HR processes so that in years to come the client can communicate the strategic behaviours and required competencies across 16 States and facilitates competency based HR decisions. This also was meant to empower managers with the knowledge, skills and guidelines for talent management decisions for their respective work areas.
- Developed a competency based selection process and psychometric assessment tools for HR and state level officials to identify right competency and cultural fit during selection process. Trained the HR and other senior managerial staff on various applications of competency framework and selection processes.
- Submitted an organizational preparedness report comprising of our various findings during the assignment of about 8 to 9 months. The report included information on identified hurdles that may impact strategy execution and recommendations/ideas to resolve those
- The client has successfully implemented the revenue based operations model without compromising on the core philosophy, values and cultural ethos.
- The competency framework, competency based recruitment and selection tools have made it easier to precisely define, attract and select the best suited talent.
- Organization is recognized to be one of the very few professional NGOs in India deploying advanced strategic management concepts, techniques and tools.
- Achieved desired geographic spread due to savings in resources and self generated revenues. Has now opened up its operations in Orissa and has recently celebrated 45th anniversary.