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Organization
-- Division was one of four companies within
an operating group focused in the office
furniture and office products marketplace.
Situation/Challenge
-- The Company had severe revenue and
margin issues. This was the result of
having one of its primary products become
obsolete through advancements in technology.
In addition, an interruption in serving
customers occurred due to moving the business
to a more favorable labor market.
Results:
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Reduced
the new product development time frame
by 33% through implementation of a
formalized process |
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Eight
new product lines were introduced
within a 24 month period |
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The one year run rate for these new
products generated a sales increase
of 38%, with gross margins increasing
by 5 percentage points |
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The
Division became one of the most profitable
in the group. |
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Solution
-- A systematic rebuilding approach was
used to turnaround this business. Elements
of the approach included:
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Strategy
- each new product introduced was
innovative in function and design |
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Alignment
- researched channel partners and
end users to define opportunities
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Development
- a formalized, fast-track product
development system was introduced |
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Positioning
- company positioned as profit generator
due to product line uniqueness |
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Execution
- terms and conditions of sale rewarded
continuity of customer purchases
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