Defining an Organisation Review for a Pencil Manufacturing Company
The client, a pencil manufacturer turned to UC to restructure its organisation as it faced the following challenges:
- Absence of clearly defined vision and values leading to low levels of motivation among the employees
- Lack of uniform leadership styles between the owners
- Absence of a clear business and marketing strategy
- Lack of appropriate production planning systems
- High variable cost
- Lack of working capital management resulting in varying average collection periods across customers, non-moving inventory and high burden of interest costs
- Lack of clearly defined organisation structure, job descriptions and performance evaluation and reward systems
- Improper staffing and absence of a recruitment policy
- Lack of adequate MIS Systems and software, hardware support.
To restructure the organisation, UC adopted the following approach:
- Prepared and communicated vision and values methodology to people
- Issued strategic planning form that outlines the methodology for developing business strategy
- Prepared and communicated approach to streamline production planning based on demand estimation
- Designed an organisation structure development methodology that explains the approach for defining new structure, recruitment, staffing, job descriptions, training, performance evaluation and rewards systems
- Prepared and communicated the approach to optimally allocate resources between the various marketing and distribution entities of the company
- Prepared and communicated the ‘Inventory Reduction Program’ methodology
- Defined responsibilities between the company personnel
- Prioritised the areas of implementation based on estimated benefits.
The client received a complete restructuring of the organisation and a re-definition of its structure.