RenB Case Study

Multinational – Food Commodity – Africa

How a Multinational (family owned), Proprietary Company, in the business of food commodities was transformed to become a Corporatized Global Business Player.

Client Company Background

The Company which is an Africa based Food Commodity Company Grew to become a USD 250 million company in 2009 after being in existence for 10 years in food commodities, based out of Lagos, Nigeria and with operations spread across 4 countries in West Africa. The Company was stagnating at the USD 200 Million level for the last couple of years in both its Top line and Bottom Line. The Company decided to Re- Engineer its Business , starting from ‘Strategy to Last Mile Implementation of its Goals for Growth’.

Brief

The Brief given to Re-Engineer Business Solutions (RenB) was to create a Comprehensive Strategy for 5 years with a goal to double its Top line and create a Healthy Profit Ratio. It was also mandated to Implement a complete Business Process Re-engineering (BPR) of the organisation with all its Business and Functional processes to achieve this in line with the strategy. The brief also stated that RenB would need to study its Business Model and Re-organise its Business Operations including Sales / Marketing, Supply Chain Management and Procurement and Production of its Commodity Supply and fit it to the Strategy of Growth it wanted.

RenB Solution Metric

A Corporate Structure with Key functions like HRD , Finance needed to be revamped and New functions Like Global Marketing, Corporate Communications , Corporate Legal, Strategy , needed to be Set up to cater to the Expanded Operations. Post the implementation by RenB, the Company grew to become a 600 million USD company (More than double the Mandated Growth it had expected), expanding to 4 more countries in Africa and India. It also expanded to additional countries in Europe with Hub operations in Poland, Romania and Spoke operations in Czech Republic, Bulgaria, Hungary and Slovenia. Its Systems & Processes were Streamlined and Automated, Real time visibility was Operational and Decision making time reduced from an average 4 to 6 days to less than 24 hours globally including the various Time zones. A strong middle management team was created from scratch through a Management Training and Development Program (MTDP). The MTDP program also helped in succession planning of the Senior Management Team. The Existing Business Support Functions was further Strengthened and Automated. New Functions was created to cater to the expanding Business both horizontally and vertically. The Succession planning was in place, and Sustainable Business practices was implemented. A comprehensive Re-Implementation of its ERP and other IT systems was implemented and all its companies and Entities was Consolidated and Consolidated Corporate MIS was achieved.

ABOUT RenB

Company

RenB or Re-engineering Business Solutions is a Transnational Knowledge Ware Company promoted by professionals having over Hundred’s of man-years of On-ground experience in Re engineering Businesses Processes. Equipped with a core team of specialists having decades of experience in various business & functional domains across industries, RenB has been able to help its clients achieve long-term success in each of its engagements so far. RenB’s ground breaking Strategic Frameworks and ideation repository have enabled businesses realize their true potential by utilizing our expertise in the Global Best Practices.

Team

Our organization is not only a composite of Functional and Business experts but we also pride ourselves in the innovation of our own methodology of solution delivery that offers you a definite fix.

The Senior Management Team of Re-engineering Business Solutions ( RenB) Personally took the Lead role in this Project with a Core team of Experts in Strategy, HRD , Global Business Development , Marketing , Legal and Information Technology , who worked on this from Strategy Creation , Global Expansion, Competency Building , Process Creation and Process Automation thru IT Backbone, Functional Transformation , Functional Creation , Legal Compliance and Business Expansion with Business Support Mechanism

The Clients Challenge

Process, Growth, Business Environment Issues

  1. No Strategic Vision and Strategy Outlook
  2. Growth By Chance not by Plan
  3. Africa Business Environment

People

  1. Acquisition issues, due to unwillingness to work in Africa
  2. Multi-Ethnic Employees
  3. Organisation Structure
  4. Reporting Protocols
  5. HRD Practice
  6. Human Capital Management
  7. Succession Planning
  8. Culture & Environment

System & Process

  1. Systems & Process was Inadequate or Nonexistent in most of the Functional & Business Areas
  2. Manual Processes in spite of a running ERP of Repute.
  3. Non Existent Work Flows & Approval Process
  4. Approval processes very Slow
  5. Non Existent Internal Controls
  6. Adhoc & Delayed Decision Support Systems

Inadequate Competency

  1. People Competency
  2. Process Competency
  3. Management Competency

Proprietary Management Style

  1. Centralised Decision Making
  2. Personality Driven Organisation

Change Management Resistance

  1. Complete Resistance to Change from Sr Management
  2. Partial Resistance from Critical Employee

 How RenB Helped

The approach Taken by Re-Engineering Business Solutions (RenB) is to RE-ENGINEER the entire Business Process Comprehensively and create a robust business Model. RenB also created a Comprehensive Strategy by ensuring the involvement of the entire management team to ensure the Buy in is there for the Strategy & Vision of the senior management thereby avoiding a major Change Management and Resistance issue during Implementation.

The strategy was built with Five Pillars of Focus

  1. Rework the Business Model to adapt to the Strategy & Vision keeping in Mind the New Geographies & Business Areas

  2. Geographical Expansion – Africa & Europe

  3. Sustainable supply of Products for the Global Demand

  4. Build Competency in all areas of Functional & Business Areas

  5. Automating all Processes with Real-time Visibility through a comprehensive IT backbone.

The strategy was complimented with a Micro detailed Milestone and Timeline based implementation plan. Greater focus was given competency building and creating the Functional Support as Geographical expansion needed this to be in place.

The Implementation Result

Strategy – Process – People – Competency

PHASE 1 - The Strategy Building & Business Model Rework

This Phase was focussed on, Corporate Strategy building exercise with all stakeholders’ participation, It was done with one is to one meeting and Workshops. The Strategy Roadmap was made Ready for Implementation. A strategy team was set at Corporate HQ Called SRAT ( Strategy & Research Analytics Team). This phase also included Re working the Business Model with a focus on the Value chain for the business being consolidated as 4 independent Verticals within the company. Each Vertical was based on the Role and Competency in the Value Chain. Further SBU’s were created under each Vertical with Each SBU being a Profit Centre Unit. A matrix structure of Reporting was put in place to ensure maximum Functional Support to all Business Units.

PHASE 2 - The Fundamental & Process Correction / Creation

This phase was to create the Basic Functional capability of the Organisation and the Focus was to Re Define the Processes of HRD/Finance & Accounting /Corporate Services (Internal Audit, Legal). Some of these functions did not exist and was created from scratch , and some Functions like HRD was Re- engineered and Re-Vamped.

PHASE 3 - The Strategy Implementation

To facilitate a comprehensive Global expansion a Centralised Team ( GBD – Global Business Development )was Inducted. This team comprised of Management Trainees from Leading B schools in India . The idea was that this would be a great Induction for the Trainees to later be absorbed in to Business Operations in the country they developed. 7 More countries were added in a span of 1 year and the First phase of Global Expansion was achieved. This Phase also saw the thrust in creating & Scaling of the capacity of own production of the commodities in multiple countries .

PHASE 4 - The Competency Building

This phase involved building the organisations ability to handle all its Business Verticals and Business Operations with ideal competency . The idea was also to ensure a large portion of the Transactional Process is not Human dependant. ( Getting quality manpower in some of the Clients markets was a Major Challenge) The Focus was to now consolidate all the Process Globally by creating a Comprehensive IT Backbone (With the Best ERP solution) and Automating all transactions and Processes with Real time Visibility thus enabling competency and reducing Human dependency. RenB helped in Selecting the IT partner ( One of the TOP 5 Global IT companies). RenB enabled the Implementation in 24 Months covering 12 Countries across the globe. The Competency of the Organisation to perform in all areas was achieved due to the Automation and Real time visibility which ensured faster decision making and Risk was getting Managed & Mitigated based on the ERM process.

Conclusion

This Project was the most comprehensive project implemented by RenB, since it covered each and every aspect of an Organisation Building, Correction and ReEngineering.

Growth Trajectory

The Client has achieved a Growth Trajectory ,100% more than the mandated Growth at the beginning and within a short span of time. It is now enabling the company to move towards achieving a Billion USD Top line.

Quality & Productivity

The clients employee Quality and Productivity Improved dramatically and by the end of 3 years the Middle Management of the organisation was manned by High Quality Premium B school Graduates. They were handling larger Responsibilities than their peers and Performing better.

Production Efficiency

The Collaboration between Departments of Business & Functions improved dramatically and Increased the Efficiency of all departments due to Real Time Online visibility.

Workflows

The Clients Transactional processes was now working smoothly Online and Decision Support Systems ( DSS) and Approvals were Quick & Easy based on Online Workflows.

Systems & Procedures

Systems & Procedures was created for every area of Business and Function with all SOP’s in place, further helping in automating the Processes online.

Automation

The Automation of all Processes was instrumental in Reducing cost and Increasing Profitability.

Production Efficiency

Clients Production Efficiency Increased dramatically, which in turn led to the Client achieving one of the Lowest Cost in COGS as well as its Operational Cost.

Higher Contribution

The Client Started realising much Higher Contribution on each of its commodities in all the markets it was catering to.

Profit Ratio

The company started to gain is Profit Ratio Dramatically from the first year itself.

Market Share

The Client achieved a Higher Market Share in most countries it is operating now.