Low single digit profitability eroding fast. A hardworking team spinning wheels. No significant product launches in three years. Previous launches had all missed targets. Sales and Manufacturing distancing themselves from Product Management, Marketing and Engineering. Confidence quietly leaving the building.

Over 86 product initiatives in the pipeline. Additional moving forward without leadership even knowing, under the carpet. Yet only few was launching and most not meeting original targetted outcomes. The energy and commitment was real. The direction was not.

The first 4-6 weeks were spent listening, observing and getting close to customers, the people and the market. What emerged was uncomfortable but clear. Over 80 of the 86 initiatives were being built for a market that had already moved on. Personal preferences and legacy thinking were driving decisions not evidence. GM and share growth expectations were set for success.

Honest and direct conversations followed. Not to blame. To reset. What a ‘Win’ was had to be redefined with success KPIs, for us, the market and customer.

80 of 86 initiatives were stopped. It took 3-4 months of working with the teams. Evidence led decisions.

Six evidence based innovation areas were allowed to continue with added support and cross finctional enagagement and reviews/sign offs. At each step functional leaders must sign off their acceptance, commitment and ownership. The right people were already inside the business. 

One capability gap (Outcome Driven Innovation techniques) was identified and cross functional team trained – inhouse and “walk the path of the customer – 8 AM to 6PM / 5 to 6 days a week” to understand the customer pint points and needs.  Bloated marketing budget cut by 75% and realigned to strategic launch activities that reached customers where decisions were actually made. 

Sales and Manufacturing started to come to the decision making table as the change optimism caught their eye.

People learned by doing. Results built the belief, successes built next level of momentum that instruction never could.

Productivity went from negligible 0.9% to 4.2% run rate in six months beating inflation. Innovation revenue beating gross margin threshold of 35% reached 12.2% of total 3 year revenue (prorated), in steps, within three years.

Product launch time reduced from 2 / 3 years down to 7 – 9 months. Business EBIT moved from low to high single digit. Productivity and new innovation revenue growth had a significant contribution. Even more was the energised leaders and their teams.

The innovation and productivity engine restarted. It is still running.

The metrics tell the rest of the story.

Curious about how the six innovation areas were selected, the steps and how the team was built? Call us.