Analysis and Strategy
Philosophy
You expect your medical examination to be conducted by well-trained, experienced medical professionals. Why? Because you know that getting the right diagnosis is crucial for developing an effective treatment plan.
At E7 Solutions, we believe that correctly analyzing your business is no less important. Our Business Analysts have a proven track record of identifying underperforming functions that, once optimized, unleash trapped performance potential.
There is a saying, “Manage the downside and the upside takes care of itself.” We work with clients to determine their most important strategic options and then use risk analysis to evaluate and make the choices. The result is a strategic plan that is robust for today’s conditions, with an eye toward tomorrow. This includes contingency plans to cover the unexpected, but inevitable, challenges that arise along the way.
Case Study
Project
Review possible consolidation options for a global manufacturer and determine the optimal course of action.
Industry
Continuous Manufacturing (Fastener Products)
Scope
6 North American Plants running 3 ERP systems; 5 European Plants running 4 ERP systems
Approach
Our business strategists paired up with client executives to analyze the risk/reward relationship of the options initially on the table and to uncover other strategic options that might have been overlooked. First, we forecast the 1, 2 and 5 year economic and competitive climates in North America and Europe. We then analyzed the risk-weighted business performance of each strategic alternative in each forecasted time period. The most robust strategy was selected based on the risk-weighted scoring of each option.
Results
A new strategic alternative was uncovered and ultimately won the day: Close one North American facility, move its operation into one of the remaining 5 North American facilities and add a shift. Divide North America into two divisions and two ERPs, but one company. Divide Europe into two divisions, but one company. Consolidate financials in North America and in Europe, then globally, using a standard off-the-shelf package.
Lesson
When corporate executives take the time to work together in E7-facilitated strategic planning sessions, they frequently find strategies that hadn’t previously come to mind. The value of these new options can be immense.
