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DenovO Consulting Ltd

Business improvement consulting and management services


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Background

The client, an owner and director of a small bespoke manufacturing company which operated primarily within the automotive industry was planning to expand  his business to meet increased orders from his customers. The company was generating low profit margins and the owner was concerned that the investment required to increase capacity would not be reflected in future ROI.

The company was recognised for the quality of its products and its superior customer service and had grown quickly since start up and employed twenty staff. The success of the company was mainly due to the drive and energy of the owner, and the family like structure operating within the company. This resulted in the company being extremely client focussed with high quality products and customer service though not particularly profitable. See also Strategy and Operations studies.

   

Problem Definition

The roles and responsibilities of employees was poorly defined with overlaps between different management functions and a fuzzy approach to tasks and a lack of personal accountability

Solutions

Agreed a new organisational structure, with roles and responsibilities defined for all managers and staff

Introduced performance management system and specific and measurable goals

Implemented bonus systems for employees and managers

Benefits

Reduced creditor days from 90 to 45 days

Reduced overtime by 18%

Increased turnover by 7% and  net profit by 23%