Economic crisis. A business with strong products and capable people. But underneath the surface equipment and project solutions were eroding margin on many major contract. The erosion was hidden until it was identified.

Evidence led next steps. 17% of equipment and project solution revenue was identified as value destroying. Selected major project was delivering minus 7 to 12%+ NMR after handover. Limited pre-order cross functional contract review existed. The question was who had ownership of outcomes after the sale was made – sales or project management?

Three constraints were clear within weeks.

The growth engine was misplaced. Equipment revenue dominated even when installations eroded the margins significantly. Services were delivering the strongest margins in the business were treated as second. Both had to be addressed and fixed.

Cross functional contract reviews with all functional leaders present was introduced above a threshold. Every (no exceptions) major project was reviewed before making an offer and after handover. Ownership secured from every function. Structured handover and project execution with team goals.

Salesforce tracking implemented. Training, coaching and sales calls were done together (Sales and their leaders) to guage learning and further on the job training needs. 

The change was communicated honestly and directly. I had to roll up my sleeves during this process. People learned by doing. Belief was built through results not instruction.

People served the customer and leaders served the people and together built the orgnisation one brick at a time.

Engagement went from 25% to 70%. Attrition from 15%+ to less than 2%. Safety incidents to near zero. In two years.

The people were always there. The structure and the process they worked together to build – let them own it.

The metrics tell the rest of the story.

Curious about how the cross functional model was built and what changed first? Call us.