Manufacturing Company
Case Study
YOU ARE WHERE YOU ARE: With a rich history spanning over 125 years, our client, a private manufacturing company specializing in building materials, has successfully transitioned into its third generation of ownership. Their operations encompass multiple sectors, offering products for both the memorial and building industry.
WE MEET YOU WHERE YOU ARE AT: When they approached Work Excellence, the client faced numerous challenges. There was a striking performance gap between their two divisions, with one experiencing a decline while the other enjoying growth. Further complicating matters, they were dealing with an aging workforce and a Sales and Estimating teams providing inconsistent and non-standardized estimates. The goals set were ambitious: on a journey to a goal of a minimum 10% Return on Assets (ROA) within two years, develop the next generation of leaders, and increase efficiency through improvement cycles.
PICK A STARTING POINT:An essential aspect of the process was the creation of visibility plans across different departments based on what the executives wanted. This standardization aimed at supporting the company and becoming an accountability partner and resource for companywide change. In parallel, we also engaged in department-specific work improvement, particularly focusing on the Sales and Estimating teams to establish consistency and standardization in their work processes.
CONDUCT A WORKSHOP: Work Excellence initiated a strategic approach that combined public and private workshops, coaching, and consulting. We first trained the executive leaders in charge of the overarching operational plan. We then selected and trained around 35 leaders at various levels within the organization through a series of 8-12 people in a combination of private & public workshops.
SOLVE A CHALLENGE
Tangible Results: Record-breaking profit years, ROA Achievement, and Leadership Development. The leadership embraced change and took on the challenges ahead and applied the Work Excellence Method. The company observed significant positive outcomes:
Three Consecutive Record Years: The company achieved three consecutive record years of financial success through leadership’s determination and the deployment of our method.
10% ROA GOAL: Within a two-year time frame, they were successfully working towards their goal of increasing profits and improving ROA. Standardized estimation methods: By working closely with the Sales and Estimating teams, we helped establish a standardized and consistent estimation method, which played a critical role in profit increase.
Significant increase in cash: Despite an initial annual loss of $2 million, the company experienced a dramatic surge in free cash flows and sold with Zero Debt. This success underscored the financial effectiveness the leadership team and our methodology.
Leadership development program: As part of our engagement, we facilitated the creation of a leadership development program, successfully nurturing the next generation of leaders who are now stepping into leadership roles. We helped them improve their ability to understand the market for accurate pricing. These results were not merely temporary. We continued to help facilitate conversations so that the client was able to see increased employee engagement and improved communication across the organization. The company also managed to invest in new machinery at one of their plants, furthering their operational capacity.
Expand And Scale
This consistent growth and diversification illustrate their agility, adaptability, and an undying commitment to excellence. The journey to these remarkable accomplishments underscores the combined might of a resolute leadership cadre and the efficacy of the Work Excellence Method.
