Cases

Defining an Organisation Review for a Pencil Manufacturing Company

Challenge

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.

Our Approach

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.

Impact

The client received a complete restructuring of the organisation and a re-definition of its structure.