Working with the client
We recognized the client needed to lead this project. We’d provide support, but not own the work. We brought together experts in purchasing, production, marketing and manufacturing to work closely with the client. They helped identify and build the skills the client needed to be more productive.
Initially, the people in the business unit were wary of what they saw as an auditing of their internal affairs. Our first priority was persuading the group that everyone wanted the best for the company and its people. Their participation would be critical to the success of the study.
The operations team examined every facet of how the client developed, manufactured, and shipped its products to find ways to update and simplify processes and reduce costs. For example, it found that by applying best-practice strategic sourcing approaches, the client could save as much as $200 million a year.
The marketing team crisscrossed the globe interviewing retailers, customers, and contractors. They studied the industry, assessed the competition, and analyzed market trends. And they examined how the client’s products were performing, looking for underlying reasons for why certain products were unprofitable in certain markets. Their insights would help the client’s marketing and sales organization better understand and respond to shifting market conditions.
After two months, the teams recommended a three-part strategic approach:
- Focus on aligning products with the most profitable markets.
- Reduce costs by improving the operations across product development, purchasing, manufacturing, and the supply chain.
- Expand the client’s sales and marketing organization and better equip it to serve the changing needs of retailers and consumers.
These were big changes that required a radical shift in the client’s thinking and behavior. We knew the recommendations would succeed only if the client truly believed in them and owned their implementation. So we shared our ideas early on in our work to give ourselves a chance to understand and respond to senior management’s questions and reactions. We asked what information they needed to be confident about our recommendations. Over the next month, we addressed their questions and built their confidence in the plan.