The challenge
Our client is a wholesaler of prestige quality decorator fabrics and accessories which has been trading nationally for the past ten years. It has experienced healthy growth during this time and is currently trading very successfully. The current business owners plan to retire in a few years and need to prepare the business for takeover in due course. Although their objective is to continue growing the business, the owners felt that they needed some assistance to establish a clear focus for the future as they struggled to find this clarity themselves. The challenge for Phalanx was to drive this focus in an environment that has been rewarding them with excellent trading results and business satisfaction.
Our solution
The first step was to conduct a Business Profile Analysis to identify the current status of the business. This was followed by conducting a Strategic Workshop that was custom designed to identify the specific weaknesses the business was experiencing. The key findings of the workshop were:
- A high dependency on one key product line exists;
- Lack of a documented Business Plan;
- Lack of robusst Key Performance Indicators across the business;
- Lack of formal personnel management structure;
- No structured approach to succession planning;
- Heavy dependence on the current owners for all aspects of the business;
- The business has a good client base; and
- The business has excellent relationship building capability and customer service standards.
results delivered
The most significant outcome for the business owners was that they gained an understanding of all the formal processes that are needed to sustain a successful business. The need for more comprehensive Key Performance Indicators has been addressed and a the development of job descriptions was also underway. A definite and clear commitment has been made to use a staged approach to making the changes needed, knowing that the desired outcomes will be achieved over time. This will happen without negatively affecting the businesses day-to-day workings.
On-going monthly support from Phalanx Consulting will continue to further assist the progress of changes. This will help the business stay focussed and to learn how they can best address their outstanding problem areas. This level of support provides the business owners with a “safe environment” where they can express their thoughts and frustrations without judgement, only assistance. They also know that their thoughts and ideas will be challenged, albeit in a constructive and helpful way.