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Assessment of Organization Shape and Sales Operations

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Sector: Media
Assignment: Assessment of Organisation Shape and Sales Operations.
Period: 2011

Background

This major regional media company had historically been successful within its own geographic markets and had been very profitable. The organisation was taken over less than ten years ago by a larger player in the same sector. The results of this take over have led to damaging structural issues, increased centralisation, reduced investment, cultural misalignments, demotivated staff, considerable loss of revenue, and declining product sales amongst many other challenges. In the language of the
‘Boston Matrix’, this Cash Cow had become a loss-making Dog!

Assignment

 To establish the severity of the problems faced
 To investigate what new markets could be entered by existing and potentially new products
 To investigate what new revenue streams could be developed
 To consider the shape & structure of the organisation for future growth
 To begin the process of developing the business case for additional funding
 To begin the process of refocusing the organisation around a core common purpose

Methodologies

 Hands on one-to-one engagement with key staff members in management and other levels
 One-to-one engagement with the organisation’s external supply chain
 Review and verification of issues raised in the above to identify remedial action
 Review and gap analysis of market and sector options versus key competitors
 Review of available skill sets available to drive change
 Initial (and low level) review of attitudinal and behavioural issues at staff levels

Outcomes

The investigations and reviews highlighted that the organisation focus had narrowed dramatically and had become increasingly inward looking. It was not keeping pace with technological developments in production or competing in many sales arenas. Both impacting heavily on revenue generation and profitability.

Work with the senior management teams has started refocusing efforts to establish a clear common core purpose, to drive quality rather than quantity of business, and to widen and deepen the reach of the organisation within its supply chains, geographic markets and sectors. This refocusing has started to set the stage for future progress and development in 2012 and beyond while engaging an motivating the employee body. Organisation shape and structure is being reviewed to drive synergies
between teams and with the external supply chain.

New product development is being brought back into the regional operation rather than being driven from the centre. Agreement has been reached that profits generated will be reinvested back into the business rather than siphoned off to the centre. Future challenges remain, particularly around ownership of the national sales operation, control of inventory, process and procedures (which remain stuck in the 1980’s), and the speed, development and implementation of vertical digital pathways.

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