Business Transformation Consultancy
BUSINESS TRANSFORMATION PROCESS
A proven 4 stage process delivering successful business transformation improvement
This 4-stage process allows a fresh perspective to be taken at every stage of business focusing on the four key elements of sustainable value creation: sales, cash, EBITDA and profit. Each step is a stage on the transformational journey, with opportunity to consolidate and reflect before further action. The process provides a blueprint to guide discussion to select the best approach for your business and your situation.
Throughout the process my role is to engage with the key stakeholder and motivate them to achieve service excellence through the adoption of Heskett’s Service Profit Chain concept.
The Links in the Service-Profit Chain
The Service profit chain enables me to work with you to develop a highly effective Operating and Service strategy which ensures everyone is energised to deliver growth in revenue and profitability by;
- Ensuring engagement of employees and their alignment with the new business goals
- Drive step change in commercial and operational performance to ensure high levels of customer satisfaction is achieved
- Restructure finances, sites, operations and services to meet the requirements of the new business condition.
1. DEEP DIVE DIAGNOSTIC
1. DEEP DIVE DIAGNOSTIC
The type of questions included in the deep dive diagnostic are;
• What is the current status? An assessment of the firm’s current business condition in terms of its financial, commercial, operational and strategic performance
- What is the desired vision and outcome for the business? An assessment of the objectives and goals of the business
- What resources do we have? An assessment of the human and tangible assets deployed in the business
- What resources do we need? An assessment of the gaps in skills, capabilities and funding that need addressing to enable the business to achieve its desired outcome
- What are the options available? An assessment of the strategy choices that will enable the business to achieve its objectives
A key part of the diagnostic review is the financial planning and cash forecasting. At Matrix, we can make a practical review of all departments of your business; give you an honest overview of the key numbers that count, and help you create a realistic and achievable business plan that will serve to move your business forward.
By the end of the review, a thorough understanding of the key issues and challenges will have been established, and I will have met with all the people confirming who are willing to lead and who are up for change enabling a guiding collation to have been established. We can now move to Stage 2.
2. ESTABLISHING A SENSE OF URGENCY
Stage 2 is all about gearing up for change by reviewing the results of the diagnostic review will all stakeholders. The review will be categorised into Sales, Cash, EBITDA and Profit and what the key drivers are for the change agenda. Specific focus will be on the quick wins which will improve the businesses’ short-term performance which will be the catalyst for getting everyone energised for the overall business transformation.
My role as the change agent will be to drive the transformation agenda by;
- Establishing a sense of urgency in the business, breaking down barriers and looking for opportunities to do things differently.
- Actively promoting employee engagement at all levels by implementing their improvement ideas
- Target operational improvement performance through removal of waste from the process which are of value to the customer Focus on sales growth, cash generation and working capital release.
By the end of Stage 2 we in good shape for the challenges which lie ahead and we ready to move to Stage 3.
3. OUTLINE VISION AND STRATEGY TO GROW
Now that the business is stabilised, its time to look to the future, as we have established why it has suffered in the past. In this stage we look at the external and internal environments and establish the long-term changes which the business needs to address to ensure a health future.
To achieve this, the following needs to happen;
- Opportunities need to be researched , qualified and evaluated utilising SWOT, PESTLE and Porters Five Forces Models
- Business goals and objectives need to be established.
- A robust Vision complete with a business plan outlining the key steps to achieve the vision will be developed enabling the management team to buy into the strategy
The business strategy and plan will set out realistic longer-term business goals and covers:
- Three to five-year strategic growth objectives
- One to two-year functional team SMART objectives
- Product and technology offer utilising ANSOFF principles
- Sales & Marketing Plan
- Target Operating Model utilising Business Canvas approach, including resource plan for people, capex and working capital
- Funding
- Partnership objectives.
The business strategy and plan will be the blueprint for sustainable growth in sales, profit and cash. We can now look to move to Stage 4.
4. DELIVER SUCCESS AND CONSOLIDATING GAINS
Now that we have established a business strategy and plan, it’s time to put it into action. My role will be to create an environment which allows everyone in the business to be engaged and aligned to deliver the plan, and I will do this by;
• Establishing a core team to lead the company through the transformation programme.
• Communicating the vision and strategy to all stakeholders so that they are motivated and engaged in the direction of travel.
• Setting performance expectation through the adoption of a Balanced Score Card which will be used to track progress, maintaining focus and momentum.
• Empowering management, teams and employees to look to continuously improve their own area of performance, providing value for their customers.
• Continually strive for perfection and addressing any areas of weakness with a focus on people, process, customers and products.
• Negotiating with existing and potential funding partners or landlords.
• Identifying and initiating any M&A, JV or licensing activity.
Before I have concluded the assignment , I would complete a through handover with the business owners and managers to ensure that the all the required measures are in place to allow the business to kick on from the transformation continuing to grow and improve.