Overcoming stagnation through development of management systems

Growth | October 1, 2019

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Тhe Challenge

Our client was a big company distributing industrial products. Its growth was in a state of stagnation. The company's competitors were recovering from the recent financial crisis considerably faster, which the owner perceived as a sign that the company needed a change.

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The Solution

In our preliminary conversations with the senior management team, their story about the company’s development led us to hypothesise that there was significant delay related to solving central issues related to the organization’s development.

We initiated a strategic development process which incorporated setting up new business fundamentals and organizational diagnostics.

We involved all senior and mid-level managers to help them draw up a strategic plan with measures to promote the company’s growth. We agreed to conduct checks every three months to keep track of the progress under the strategic plan.

The second year the company initiated a project aimed at defining corporate values, diagnosing organizational culture and putting in place a programme for senior and mid-level managers development.

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The Results

Three years after the start of the project the company had made significant progress. They managed to catch up with a significant part of the lagging tasks that were part of the organizational development plan. Their willingness to accept and implement the necessary changes was also improved. As to the strategic planning process, it was wholly integrated into the budgeting and performance management processes.