The client, an Indian chemical company was facing challenges like absence of clearly defined vision and values, stagnant turnover and declining net profits over the last 2 years, absence of a long-term corporate and business unit strategy, lack of industry leadership in any product, weak marketing set-up, lack of customer focus, eroding market share, weak HR function resulting in sub-optimal utilisation of employees’ skills, absence of a clear career growth plan, low morale of employees, high employee turnover in the marketing department (43% in the last year), unclear roles and responsibilities at all levels, poor inventory management, high level of receivables (more than 6 months) and poor customer service due to the complexity of the order fulfillment process.
To prepare the corporate and business strategy for the client, UC Strategy adopted the following approach:
- Defined the vision and values for the company
- Determined the businesses that the company should seek dominance in
- Prepared a phase-wise implementation plan
- Designed an organisation structure with a well-defined job description for each position
- Designed a performance evaluation system for the company and linked it to compensations and promotions
- Initiated an Inventory Reduction Program and Accounts Receivable Program
- Redesigned the business processes in the organisation with a focus on customer satisfaction
- Examined co-location opportunities to obtain the following benefits:
- Manpower Savings
- Lower Cost of Production
- Simplicity in Planning Activities
- Improved Communication
Based on UC Strategy’s recommendations, the client managed to achieve a 57% reduction in the number of activities and 50% reduction in the number of entities involved in the Order Fulfillment Process. The client received a clear corporate and business unit strategy and requested UC Strategy to undertake a 4-month Corporate Strategy engagement and a 2-month Organisation Design engagement.