Client situation & approach
A world-wide leader in mineral building materials had the growth target in its Central East Europe premises to double turnover in 5 years and increase EDM (Effective Direct Margin) by 1 p.p. per year. The client is mature in manufacturing operations, thanks to a five-year WCOM (World Class Operations Management) program but, was experiencing a low market share and thereby uncaptured margin potential in the pilot market for its main product domain worldwide.
The company’s sales operation identified a 20% Time Thieves Loss. Further to this, a major loss area was ineffective preparation, execution and follow up of customer meetings. No behavior element was present in the operational sales steering. A Pilot Growth Excellence Program was designed, leveraging the strengths of the WCOM maturity on the operations side and centered on Growth on every agenda, Management by priority for breakthrough results, Share-of-pocket obsession, Bottoms-up gap-closing of sales efficiency and Boosting local sales activity level
EFESO tailored a Growth Excellence pilot program with four core modules: Performance Behavior in Sales, Time Thief hunting in Sales, Effective Customer Meetings, Share-of-Pocket based Growth planning.
Results
- In the 3-year pilot project, they had sales growth of 10% CAGR, twice the underlying market growth, as well as achieving the set target of EDM improvement of 1,0 p.p. per year
- Share-of-Pocket increased significantly in the target growth segment, as well as the number of sales visits and the number of new customers
- Thanks to the Performance Behavior Module, a deep mindset change occurred in the organization. In particular, the degree of autonomy and drive to develop business and ways of working was boosted
- A next wave of improvement activities was planned to further expand the results of this pilot phase