International manufacturing services and support group

Training programme established for highly profitable services company.  Sales in excess of €3.0 billion, and 14,000 employees in over 60 units operating through 200 service centres world-wide. The training produced cash action plans to save an additional €100 million.

This services group is part of a major industrial enterprise.  The services entity operates through over 60 units spread across about 40 countries.  It handles a wide range of business across many different technologies and with very different customers.  

Some customers need emergency solutions that, if delayed, can create considerable loss of revenues. Other customers can plan their maintenance needs over many years. Enhancing clients' existing equipment or a full upgrade is also an important business stream.

Being responsible for the most profitable part of the parent group, the Finance Director had no wish to add to the existing reporting burden.  He was steadily reducing the complexity of the reporting systems.  The last thing he thought his group needed was spending time on training to improve cash generation when the business was demanding urgent attention.

Nevertheless, an initial review of the business revealed quite varying performances across the group. Some entities were much more proficient at cash generation.  Clearly, if all the group operated at best practice, significant cash gains could be made.

A training programme was scoped and developed jointly with the service groups leading sales, procurement, legal, quality and finance people.  This produced a training package that really spoke to the business.

Approximately, 40 units attended the training, covering the vast majority of sales volumes, and all identified significant cash savings.  Metrics were provided with the training that could be immediately adapted to each unit's particular needs.  Local country characteristics meant that the plans had to be capable of being implemented across a wide range of cultures.

Units appreciated the methods by which cash generation could be achieved, not least by simply doing the basic things better and smarter.  Cash is now built into every aspect of the performance scorecards.  

As a result of these developments the services group is benefiting from much stronger cash generation and has reduced the working capital needed and thereby increased the value of the business in excess of €150 million.

© Copyright Talanworth Limited 2003 - 2011