Renewal within Mature Businesses Mona School of Business and - PowerPoint PPT Presentation

Renewal within Mature Businesses Mona School of Business and Management Conference November 9 2017 Simon Roberts | Chief Information Officer | GraceKennedy Ltd 1

Agenda for Renewal • The reasons, specific issues and actions taken • How the changes were made • The results and lessons learnt 2

Agenda for Renewal • The reasons, specific issues and actions taken • How the changes were made • The results and lessons learnt 3

Reasons for Change Price competition eroding revenues and profitability FINANCIAL PROCESS & PEOPLE TECHNOLOGY • Business revenues OR • Low morale, low profits either flat or productivity, poor • Processes have declining in real terms worker-company inefficiencies (too slow, relations • Products and services too many people, poor not competitive vs. • Compensation not customer experience) imports (excluding tariff linked to productivity • Technology is obsolete barriers) or wrongly sized • Market share under threat OR unsuccessful innovations 4

Issues and Actions Area Issues and drivers Actions •Processes inefficient and technology “low tech” or • Restart three locations too small • Install high tech high output lines MANUFACTURING • Product costs uncompetitive • Retool the teams • KPIs trending in the wrong direction • Performance based compensation • Workforce relationships fractious • Outsource the distribution • High cost of operating multiple distribution centres operations DISTRIBUTION • • High levels of damage and shrinkage Build a new DC (230,000 sqft) • • Productivity and morale low Retool the teams • Performance based compensation • Develop, launch, rejuvenate TR • • Canned Juices – volume decline due to bottled drink Reformulate and rejuvenate TIRG, PRODUCTS competition launch kids yogurt range • • Yogurt – volume decline due to Branded imports Focus marketing on resonant consumers • Banking services – increase in consumer demand • Develop, launch, extend, rejuvenate for convenience [self-service and online tools] SERVICES Global Access for FGB • Auto Insurance – enabling self-serve purchasing • Develop, launch, extend GKGOnline online 5

Agenda for Renewal • The reasons, specific issues and actions taken • How the changes were made • The results and lessons learnt 6

The typical change process Internal and external data confirmed performance gaps Management evaluated the Post Expenditure data, determined Evaluation causes, created Reviews change plans and conducted to learn obtained required support Program and Plans were project executed, typically adjustments were with cross- made where functional teams needed 7

Agenda for Renewal • The reasons, specific issues and actions taken • How the changes were made • The results and lessons learnt 8

RESULTS - examples MANUFACTURING PRODUCTS Productivity - >82% (cs/employee/mth) Tropical Rhythms – All commercial Profitability - sustained for several targets exceeded years TIRG Yogurt – 30% to 45% Retooling - >US$15M market share DISTRIBUTION SERVICES Distribution cost – >10% lower Global Access - >19% CAGR transactions Shrinkage – >95% down + global footprint Capacity - >50% increase GKGonline - >100% YOY growth entering CARICOM 9

Lessons learnt Current • Businesses need to renew themselves periodically profitability is • Meaningful gains come from radical changes. Tweaking of existing systems is not good enough not a predictor • Changes appropriate for both by high & low profit companies of the future • Using a cross-functional team approach, with clearly defined benefits Success • Focus on what the customer will pay for – innovation (and rejuvenation), plus marketing improves with: • Where appropriate – use pay for performance • Early and continuous communication & training 10

Finally….. When finally done, we have often questioned why we had taken so long to make the change 11