Key Results
Over the course of 40 weeks working with Renoir, the client saw significant gains in the following forms:
Total annualized savings
US$6.1m
Realized, in-pocket savings
$3.1m
Overall project ROI
4:1
↑ 194%
Account coverage
↑ 138%
Opportunity generation
↑ 24%
Closed deals
↓ 32%
Overdue work orders
↑ 35%
Impactable service expenses
↓ 42%
Overall inventory
Background
The client is a heavy equipment and power systems dealer in Asia. As a market leader in heavy equipment sales, their nationwide network of branches and offices offer extensive product support capabilities that include workshop service facilities, maintenance services and account management services. It decided to partner with Renoir to assess opportunities for further improvements, aimed at strengthening its position in the one of its Asian markets and enhancing its ability to provide world class product support and customer service.
The Challenge
Renoir’s initial in-depth analysis identified a number of opportunities in the client’s sales, service and inventory departments, such as poor forecasting, low workforce productivity, ineffective manpower planning and inadequate performance review. By addressing these and other operational inefficiencies, it was estimated that a potential financial benefit of US$5.8 – 7.6m could be realised.
What We Did
The client engaged Renoir in a 40-week project divided into three workstreams – sales, service and inventory, with the focus defined as:
- Sales & inventory: Improvements in business development, sales forecasting & planning, sales force productivity and performance management
- Service: Improvements in organisational design, planning, productivity and performance Management
The client placed additional emphasis on wanting to see changed behaviours in the client’s personnel to ensure sustainable results and, at the same time, improve cross-functional integration and communication between the three departments and across all business units and locations.
The Project kicked off with Renoir’s Focus Process™, which ensured that consistent and sustainable outcomes were achieved. The process took the client’s staff through a learning experience that promoted commitment and ownership of the solutions being implemented, while retaining the company’s essential organisational goals and corporate identity.
To achieve maximum impact and full departmental and employee buy-in, a select team of the client’s employees were seconded to the project as a full time taskforce, and cross-functional “Management Action Teams” (MATs) were set up, led by senior managers in the organisation. The MATs convened weekly, deciding on process and system changes needed. In addition, the company’s Executive Committee functioned as the Project Steering Committee, and meetings were conducted every three weeks to review progress, remove roadblocks and make key decisions about the way forward.
The Results
The workstreams began designing the new ways of working. Stakeholders were engaged at all levels, processes were reviewed and refined, and management control systems were developed, tested and improved upon.
How a well drilling company boosted work order effectiveness
How a well drilling company boosted work order effectiveness
Boost process efficiency strategically with change management.
Following Steering Committee approval, the Project team rolled out the new ways of working to staff across all locations and business units. Training was conducted for over 400 staff, and a behavioral audit mechanism was introduced to measure changes in behaviour and identify focus areas for sustainability and ongoing improvement.
Within each workstream, specific initiatives and tools were developed, fit for purpose and which led to tangible results. In addition to new and refined KPIs in all areas, highlights included the following:
Sales Improvements
- Improved customer call planning methodology,
- Greater structure and transparency in opportunity management,
- Centralised performance dashboards and regular reviews,
- Improved utilization of CRM and other database capabilities,
- Annual increase of 22% in revenues and 13% in gross profits,
- Account coverage increased 194%,
- Opportunity generation increased138%,
- Closed deals increased 24%
Service Improvements
- Streamlined organisational structures,
- Proactive and transparent manpower planning,
- Improved work order efficiency and prioritisation,
- Clear skill matrix for technicians and supervisors,
- On-site quality management, processes and checks,
- Centralised performance dashboards and regular reviews,
- Improved coordination with sales,
- Impactable service expenses improved 35% annually,
- Overdue work orders decreased 32%
Inventory Improvements
- Re-defined roles and responsibilities across departments,
- Streamlined order management processes,
- Improved data visibility via a centralised inventory management system,
- New performance dashboards and regular reviews,
- Overall inventory levels reduced 42% over the previous year,
- Aging inventory reduced 6%.
Overall, the project achieved annualised savings of US$6.1m for the client, and throughout the 26 weeks, actual savings of US$3.1m were realised. This gave the client a 4:1 return of investment. Just as importantly, it introduced visible changes in behaviour and organisational culture. The constant engagement and involvement of the client’s employees in all phases fostered a greater sense of ownership of the new systems and processes, which will assist in sustainability of the changes and continuous improvement.
“The new ways of working have given us the necessary foundations to continue on our vision towards becoming a world-class, responsible organisation, a leader in nation building.”
President
Foster employee ownership over change initiatives to secure buy-in.
