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