Case Study 1

Strategy Implementation and Performance Improvement for an electronic components contract manufacturer


The challenge

An electrical components contract manufacturer had recently lost an important customer to low-cost, offshore competition and was facing a number of organizational problems:  Top management was not working well together, there was poor communication across functions, and employee performance was not well managed or rewarded.  I was brought in to help deliver improved business results by better aligning the management team with key strategies to address key market opportunities, improve organizational effectiveness, and engaging all employees with clear performance metrics and results-based rewards.


What I did

I worked with the president and key managers to identify strategic themes.  We worked through several organizational alternatives to better address workflows, key processes, collaboration, and cooperation.  Through a series of discussions and brainstorming they identified major organizational priorities, creating a roadmap for moving forward.  I worked with the group to improve management teamwork and provided individual coaching and guidance as the project moved forward.


Results

The team accomplished the work within a six-week period, agreeing on five specific organizational and strategic initiatives.  These included business management practices, an accountability process, performance measures and a process to coach and evaluate employee performance at all levels, and we worked together to design appropriate compensation plans.  In the first year, plant productivity increased 9%, on-time shipments increased 20%, the company won-back the major customer, and saw a dramatic improvement in completion of strategic projects.  The move gave the CEO more confidence in his control of performance and ability to continue to direct performance improvements of each individual and the team.