Express Diagnostics

Cases

The company has set broad goals of growth, whereas the directions of the company’s further development were not clearly defined.
The company had an issue of micromanagement and lack of clear responsibility spread among its branches and down the organizational hierarchy.
Lack of structured compensation and promotion systems resulted in fragmented motivation and high turnover of mid-level management.

Proposed a number of strategic options to set a development vision plan in a 2-3 years perspective synchronized with market developments.
Set up cascaded measurable responsibility sharing system through project management levels.
Reform the organizational structure and responsibility sharing system. Improve the communication among the numerous organizational units.
Introduce performance evaluation system, grading and skills assessment processes.

The management of the business unit had an operational planning of only one year, mainly focused on only one of the business directions.
The business unit managers used numerous resource planning software programs, not integrated to each other, which caused major inefficiencies.
The bureaucratic hassle and complex paperwork requirements were found to be a bottleneck to efficient business processes.
The KPI system was in place only on corporate level, and not cascaded down to management.

Extend the operational planning time horizon to 3-5 years, which would efficiently link the operational planning to company strategy.
Transform the organizational structure to product based format, centering the product based responsibilities and processes in one place.
Install an integrated ERP system connecting all the small software pieces used by the different departments of the company.
Introduce cascaded KPI system linking with the bonus and motivation system for the managers.

The company suffered from classic syndrome of owner’s “withdrawal” from day-to-day management. The shareholder engagement was sporadic and disordered, leading to suboptimal decisions.
Strong internal control department (“eye of the owner”) often interfered in the affairs of executive departments.
The company had a significant efficiency problem, with decreasing margins due to overstaffed departments and low level of automation in reporting systems.
The staff motivation was low, employee turnover high for some units due to unclear responsibility sharing.

After diagnostics we received a large performance improvement mandate. We helped them to: