Turn around plan in Russia
Fields of the Project
Project's description
Development of the Turn around plan for the Firm in Russia
Firm
Turnover above 200 m Euro. Baby food industry
Location, language
Russia. Russian and English languages
Role
Interim leader of the Turn around plan Team
Lenght of the Project
Four months
Results
Scope of the Turn around plan
In general there could be two dimensions of economical turn around of the Firm considered: Business improvement in the frames of the existing market, and the Firm market leadership improvement.
Such approach opens several fields of planning and delivering of the Turn around of any Firm:
Such approach opens several fields of planning and delivering of the Turn around of any Firm:
- Operational perfectioning/ Market share striving field. Actions framed by the existing market: competitors, customers, products.
- Organizational perfectioning/ new products development field.
- Organizational perfectioning/ Market share striving field.
- Value innovation/ Reconstructing market boundaries field. Turn around plan covered all of these fields, but with the focus that differentiated among them.
Scope of the Turn around Project. Operational strategy*
The main and critical issue of the Firm was its cashflow.
That is why the deadlines that were agreed, guided the Firm for gradual and vigorous return of its financial liquidity.
Thus, Operational strategy* was put in the very center of the Turn around plan.
Nevertheless, Organizational strategy** found its place in the Turn around plan too, especially in the area of Sales.
That is why the deadlines that were agreed, guided the Firm for gradual and vigorous return of its financial liquidity.
Thus, Operational strategy* was put in the very center of the Turn around plan.
Nevertheless, Organizational strategy** found its place in the Turn around plan too, especially in the area of Sales.
Key investments. Deadlines. Influencing the cashflows
Key actions and associated investments were divided into the Projects of the three time frames:
There were four Projects selected from the three perspectives above, of the critical importance for the starting position of the Firm. They were converted into the operational level plans. Their results were quantified by the financial model developed for the Turn around project.
- Short term Projects. They had the largest influence on the cashflows. Their implementation was first priority in the Turn around plan, and it was supported by relatively minor capital investments.
- Medium term Projects, which had the medium influence on the cashflows. Second implementation priority Projects. Funds necessary for implementation of this category Projects came from the cash released by short term Projects. Alternative investing was planned in organization development with relatively smaller funds necessary.
- Longer term Projects, which predicted medium influence on the cashflows. These Projects covered value innovation and the reconstruction of the Firm's market boundaries in order to fortify Firm's market position.
There were four Projects selected from the three perspectives above, of the critical importance for the starting position of the Firm. They were converted into the operational level plans. Their results were quantified by the financial model developed for the Turn around project.
Context of the Organizational strategy**
The Turn around project had a built in link between the Operational projects and the Organizational perfectioning plan:
- Short term Projects were based on the competencies that were already available.
- Medium term Projects were based on the organizational improvements/ improvements of the competencies that were already available.
- Longer term projects were based on the assumption that certain competencies must be developed uprfont internally, or acquired from outside the Firm.
