Workshop - Finding Strategies to Grow a Manufacturing Company
Time Needed for Presentation:
Workshop 4 hours
Presentation Description: The biggest problem facing small and midsize manufacturers today is lack of growth. Many have to find a way to grow or they won’t survive. This workshop example is based on the author’s real life experience during a 5-year turnaround of a manufacturer of material handling machines.
Part 1 – How Much Growth?
It is important to begin by defining specifically how much growth is needed in sales gross profit, and net profit
Part 2 - Show Me The Money
Growing is not simply ways of increasing top-line sales. Growing is about changing strategies to improve sales and profitability. Growth strategies are about money. Increasing sales, profitability or cash flow requires choosing the right strategies. New strategies require some kind of investment, whether it is inventing a new product, expanding the sales force buying a new machine tool. So it is necessary to find out where the company is making or losing money before making strategy decisions
Part 3 – Diagnosis
Strategy decisions are risky so the owners need as much information as they can get on customers, competitors and markets To makes sense of the information it is important to use some tools that combine the strategies and money.
Part 4 - Prescription- Evaluate The Strategies
This workshop illustrates the different strategies used by very successful small and midsize manufacturers to grow and thrive in the new economy. It covers 15 different strategies used by job shops and product manufacturers in enough detail to help you consider using the strategy.
Part 5 – Budgets And Forecast
It is difficult for most people to keep track of all of these decisions in their head. This is the primary reason that most manufacturers should do a growth plan that summarizes all of these steps before the money is spent. The workshop will discuss how to use pro forma sales forecast and budget to play “what if with different growth scenarios.
Part 6 – Implementation
No plan is any good unless it includes instructions for the people who are going to do the work. The author describes the tools he used in several successful growth plans for implementation. The process is simple and is called "Quad Planning."
This workshop is not another academic exercise in strategic planning or a variation of large company planning. This is a “how to do it” workshop for small and midsize manufacturers. It is based on the author’s real life experiences of developing a plan for growth that was implemented during the fires of combat to survive.