Business Management

Creating organisational change for bottom line results

Background

A world-class space hardware manufacturer was working through a difficult expansion into new products and technologies. New owners wanted rapid improvement to financial performance and renewed focus on core business.

Project Brief

• Return the business to profit within 12 months

• Grow top line sales of core business by 25%

• Reach a specified level of profit within 24 months.

Solution

In its initial structure the increasingly demanding non-core products were heavily impacting people and projects across the business. At the same time these products were running into difficulties from lack of timely specialist knowledge.

A new organisational structure was put in place to physically, logistically – and to some extent financially – separate core- and non-core products. An experienced and specialist team was then built up to deliver the non-core projects as efficiently as possible.

To grow overall sales while removing non-core business required an expansion of core capacity. Supported by a strong order-book an expansion plan was put in place which included refurbishing the main production area and existing cleanroom, procurement and commissioning of new equipment and cleanrooms as well as recruiting and training.

Non-core projects were closed out within 24 months. Specialists were transitioned into other organisations and permanent team members re-tasked to support the core business expansion.

Results

✓ Profitability was achieved within 12 months

✓ Core business was expanded by 25%

✓ Required profitability was met within 24 months

✓ The business was put back on a firm footing with a strong development plan.

[Photo credit: NASA/MSFC ]