Case Study Details

Business Turn Around

The Business Challenge:

  • A senior management team and the board of the organisation intuitively felt there was a significant business problem, which they could not articulate from information provided to them from internal sources
  • The business challenge was such that it was difficult to make firm conclusions as to whether a financial problem existed
  • Nor did senior management have confidence in the existing resources to investigate the perceived problem
  • At the same time, senior management were reliant on existing resources to keep the business operational
  • DirectFocus’s customer was the senior management of the enterprise

Approach adopted:

Phase 1: Initiating the Project

  • DirectFocus listened to the customer and developed an approach in partnership with key stakeholders

Phase 2: Scoping

  • The following reviews were implemented:
    • All business information provided to management was analysed
    • The organisational structure was investigated to determine performance requirements to meet emerging objectives and needs
    • Performance deliverables of current structure were analysed and gaps identified
    • Outputs of research and review process included:
    • An 8% “hole” in recurrent budget was identified
    • A conclusion was reached that current resources were not capable of “fixing” the problem
    • New support infrastructure systems were required
    • For on-going business objectives to be achieved it was concluded a new approach was required

Phase 3: Implementation

        • Solutions involved restructure of staff and duties including spill and fill and some terminations
        • New resources were identified and put in place to achieve turnaround
        • Involvement in the turnaround project led to the creation of an on-going reform agenda, including new projects associated with cost reduction and business process reform

Outcomes to Customer:

    • Management were given the confidence to make decisions based on firm and verifiable information
    • Over an 18 month period, the 8% hole in current budget  was rectified (representing a total turnaround of tens of millions of dollars)
    • On-going reform projects were identified delivering on-going business benefits to the customer in terms of cost reductions, future innovation strategies and staff involvement in new initiatives

 

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