Background

The client, part of one of Europe’s largest energy companies, producing mainly oil and gas, employs approximately 20,000 people worldwide. The segment in question produces and market lubricants to mechanical repair shops. The short-term objective was to make an impact on the Nordic market and raise the brand awareness fundamentally, and long-term to roll out the brand globally, starting with Europe.

The challenge was to find strategic markets with buyers – and possibly also distributors –who could help to determine the use of different qualities of lubricant.

Implementation

The first step was to create a business mission for the global market, targeting specific markets and customers. After that a message for the Nordic users was developed, and efforts were focused on making the sales process more efficient.

In Phase 1, Mantec jointly with the Management Team established a structure for improvement, which consisted of the following strategic areas:

• Creation of a Balanced Score Card with relevant KPIs
• Formation of a global mission and strategy
• Definition of market and segment
• Unique values where defined and added to the concept, We added different levels of services to specific end customer groups
• Definition of sales and marketing process
• Development of resources – roles – competence profiles

Phase 2 started actual implementation, targeting first the leaders and then the whole organisation, via these activities:

• We changed the external message and communicative platform, focus were put on client brand rather than product brand
• Change teams were formed to get a quick start, we focused on some customers where we had a potential to fulfil their needs
• Improvement teams were formed, to work with the sales process
• A leadership for change were implemented
• New management tools and systems were utilised

In Phase 3 training and coaching were initiated and special needs within the sales organisation were accommodated, focusing on the following key areas:

• Define “my part” in the sales process
• Sales Leader training and coaching 
• Sales training, techniques and behaviour
• Customer mapping
• Sales resource coaching – planning and manning.

Results

Overall the project was very successful and the client became significantly more market oriented. The new sales organisation succeeded in signing new customers and finding ‘new money’ and business opportunities.

In Europe:

• 50 new customers were found within 6 months
• Sales increased by approximately EUR 30 million.

In the Nordic region:

• Sales were moved into five different customer segments
• Sales increased by 35%, equivalent to approximately EUR 20 million annually
• Profit margin improved by 1.5%.

Background

The company, part of a global corporation producing and retailing furniture and home appliances, possesses a unique state-of-the-art competence in industrialising craftsmanship-like methods. Its future is secure. But although the company is profitable, the level of profit is not acceptable.

Accordingly, Mantec was brought in to conduct an extensive analysis of the operations, and a number of potentially substantial improvement areas were identified which could have a profound influence on profit. Main areas identified were:

• management and leadership – lack of follow-up and variation control;
• high level of rework and reject;
• low efficiency in carrying out decisions and follow-up;
• results deviated from plan, with little preventative action taken;
• work in progress too high and wrongly prioritised;
• delivery precision insufficient, internally as well as externally to customers; and
• lack of coordination between departments and co-workers, resulting in dissatisfaction and high levels of absenteeism.

Project Implementation

Based on the analysis, Mantec and the client formed a common view of necessary actions and created a customised project which mainly comprised:

• teambuilding and management awareness training with the Management Group – to help improve organisational development;
• management training at all levels – to help improve the skills required to work with people through training and coaching;
• realigning the focus of the company to centre on production – with all other operating processes working as support. In particular, clear responsibilities between planning and production were established, and the work of the maintenance department, by increasing levels of preventive maintenance, was focused on supporting the production process;
• developing master-planning – so that analysis and subsequent scenarios could be evaluated and the consequences assessed;
• improving detailed planning – which helped to balance production flow. and
• improving tidiness and order throughout the business – workplaces, routines and behaviours of all involved.

According to the client CEO, the key factors that led to a successful project were:

• the very strong involvement of all managers, employees and workers;
• the creation of common views and subsequent goals as a result of the initial analysis;
• the ability of Mantec to adjust and customise the project to suit the demands and needs of the company; and
• the effective internal marketing of the project to all collaborators within the company, creating a strong commitment from all parties to carry it out.

Results

Specific, measurable results of the project were:

• Productivity increased by 19% 
• Rework decreased by 80% 
• Quality improved by 24%
• Operating Profit increased by 24% 
• Earnings before interest and tax increased by 450%
• Project ROI was 300%.

In general the project created improved status for production management. The company also gained a greater focus on customer values and gained a greater understanding of what really creates customer satisfaction. Last but not least, it became more fun to go to work with a highly motivated workforce!