North America

Success Story

Measurement and management tools drive big gains for small manufacturer

A small manufacturer with about 25 employees had Insufficient accountability and performance measurement systems. ROCG helped create a formal organizational structure and showed the business owner how to monitor the business using key performance indicators.

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Where The Business Was 

  • Small manufacturer of high-quality orthodontic devices
  • About 25 team members 

Problem 

  • Owners working more than 50 hours per week, not making effective use of the team
  • Insufficient accountability and performance measurement systems 

Solution 

  • Create a formal organization structure
  • Develop and monitor Key Performance Indicators
  • Establish formal career paths for team members 

Implementation 

  • Create a new team profit sharing plan to link company, team, and individual performance to compensation
  • Shift owners from excessively working in their business to working on it
  • Establish (KPIs) and monitor them on a monthly basis
  • Develop systems and procedures for all important aspects of the business
  • Complete team building and customer service improvement programs
  • Facilitate customer and team advisory boards
  • Use activity based costing (ABC) to determine profitability, efficiency, and productivity on each product line 

Results

  • Sales up 182%, profit up 403%, and business value up 661%
  • Owners work 4 days a week
  • The management and owners are trained to read and analyze financial statements
  • The culture of the business has changed with an emphasis on team work to improve productivity and customer service

Summary

  • Where the business was:Orthodontic device manufacturer with superior products
  • Problem: Lack of formal organizational structure, no clear vision or strategic direction
  • Solution: Develop a formal organizational chart, instill accountability, redefine corporate culture
  • Implementation: Implement systems and procedures for all important aspects of the business
  • Results: Sales, profits and business value increase, owners work 4 days a week