Strategic Leverage Consultants

Upcoming Executive Workshops

Strategic Leverage: Getting Traction in Today's Marketplace October 2-3, 2008 in Chicago, IL
Forging Your India Strategy: Buy, Sell, Collaborate or Compete - September 15, 2008 in Chicago, IL

Fall 2007 SLC Quarterly

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SLC provides consulting services to a wide range of clients across several industries. Listed below are a few examples of the client issues that we have helped solve in the areas of corporate strategy, business unit strategy, and new products and business ventures.

Corporate Strategy: Example 1
Situation
Large, global supplier of telecommunications equipment and services struggled with multiple divisions executing varied strategies.

Recommendations and Actions
Working with the Chairman's office, we developed a systematic framework for strategy formulation. We utilized the Strategic Leverage™ concept to identify the company's strengths as well as to analyze the future of the industry. We worked with each division to establish short and long term strategies consistent with corporate goals and objectives. As part of this effort, we analyzed several diverse industries and potential partnership opportunities.

Results
Alignment of all business units on the firm's priorities and strategies based on detailed divisional strategies that supported the corporate vision.

Corporate Strategy: Example 2
Situation
Leading manufacturer of computer components with approximately $1B in sales had experienced rapid growth due to technology trends, but did not have a plan to maintain and support the growth.

Recommendations and Actions
Developed a strategic plan for the firm, outlining key business segments to focus on and short and long term objectives. Worked with key managers to develop a corporate process for strategic planning. Implemented this process by training various operating groups and assessing their plans. Recommended diversifying product and customer portfolio by expanding application of current technology.

Results
The company took the leadership position in the marketplace, increasing its revenues and market share to record levels, and the firm was well positioned to weather industry changes that included rapid technology and price changes as well as new entrants into the market.

Business Unit Strategy: Example 1
Situation
Global manufacturer of high technology immunodiagnostic instrumentation with $5B in sales created a business unit focused on a new product category. Category sales were $20M but not growing.

Recommendations and Actions
Broadened marketing focus to better penetrate key end-user markets. Helped management team develop product planning calendar and implement it to systematically grow segments of the business. Developed a detailed product support strategy consisting of changes in the organizational structure and including training, technical support, repairs, and parts availability.

Results
Category grew to $400M in sales over 3 years.

Business Unit Strategy: Example 2
Situation
The Heavy-Duty Truck division sales of a growing auto and truck parts manufacturer were heavily dependent on OEM customers. After launching several cost reduction initiatives, the division's profitability was still declining and the division continued to experience pressure from OEMs to further reduce their prices.

Recommendations and Actions
Analyzed additional distribution channels for product sales. Recommended establishing presence in after-market sales channel through distributors and creating pull-through demand. Outlined marketing and sales activities to support after-market strategy to distributors.

Results
Prices and sales in OEM channel remained stable. Sales in after-market channel reached 12% of OEM sales. Dependence on OEM sales declined and the Heavy-Duty Truck division established new channel and earned incremental revenues.

New Products and Business Ventures: Example 1
Situation
A multibillion dollar building products company needed to build a new product development and launch process. R&D was successful at creating new technologies but the product concepts often stalled, lost priority or took years to commercialize and launch.

Recommendations and Actions
Developed the structure and governance model for the NPD organization including the governing committee structure, staffing model, budget and fast-track management program. Also developed the business case for the first several products through the NPD process and managed the fast-track launch of a product line with revenue of over $750M.

Results
Created a fully functioning NPD organization with organizational credibility gained through the accelerated launch of several products.

New Products and Business Ventures: Example 2
Situation
Multi-billion dollar North American producer of interior and exterior wall finishing products seeking to expand into global markets.

Recommendations and Actions
Created a detailed country level study of the global paint and plaster industry, including product demand, pricing, usage, and competitive position of current providers. Recommended staged launch, production locations in high potential developing countries, and premium positioning. Outlined company resources and capabilities required to facilitate global launch.

Results
Initiative was approved by operating team, executive team, and board of directors and adopted as part of company growth strategy. Project team was assembled and funded with $1.5 million of initial investment capital for additional product and market research.