CASE STUDY – Proof of Concept and Delivered Value
One of the independent operating subsidiaries of a major Global conglomerate in the construction and related services field has been utilizing the Organization Optimizer annually for the last five years.
The newly appointed CEO at that time was challenged with a company that was losing money and struggling.
Based on the metrics that the conglomerate used to gauge each of their 16 divisions and direct subsidiaries, his company ranked amongst the poorer ones.
A business friend recommended him using the Organization Optimizer, a methodology that he was familiar with. He advised him that he thought it would be a good start as a basis for him to capture an overview of the strengths and weaknesses of the company that he was now responsible for.
PROCESS & ACTIONS
Within four weeks of contacting CSI Diagnostics and agreeing to their process, he received the report. He was amazed on how easy it was to get it underway, the fast response, and most importantly the resulting information.
The CEO brought his top management team together and shared the report with them.
In addition to understanding the differences on how his customers and suppliers rated them as compared to the management and employees – an enlightening experience for the management team, the report identified his company’s overall weakness with several important capabilities. It also identified some strengths to build on. The weaknesses included issues with communications with their customers and suppliers, and the effectiveness of the management team.
Based on specific areas that the report identified, the management team brainstormed various solutions and selected a series of initiatives to correct them.
For the following 4 years, they repeated the process. Each time evaluating the impact of the initiatives that they had undertaken, and identifying new capabilities that required improvement.
Over the 5 years, the overall Organization Optimizer scores went from 6.7 up to 8, while sales increased from US$24M to $60M, and EBT from -1% to 6.7%. The CEO attributing his subsidiary’s success and resulting improved customer and supplier satisfaction, in no small way, to the Organization Optimizer.
Since 2016 his subsidiary has been ranked by corporate as the highest amongst all 16.
With these results the conglomerate is now using our Organization Optimizer in four other subsidiaries and is considering instituting the Organization Optimizer in all their divisions and subsidiaries.