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MTI Consulting, a leading international management and strategy consultancy, launched the ‘Lean Thinking – Lean Execution’ Solution for companies to stay competitive in current times.
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MTI Consulting, a leading international management and strategy consultancy, launched the ‘Lean Thinking – Lean Execution’ Solution for companies to stay competitive in current times.
As the economic pressure on individuals and businesses continues to increase, there is a strongly negative mindset creating a defensive and reactionary atmosphere. The air is filled with hopeless chatter about the cost of living and the manager’s challenges of dealing with soaring energy, fuel and food prices. Exporters struggle to remain competitive in the global market and expenditure budgets are in ‘continuous-revision’ to salvage lost ground.
Aggravating matters further is the typical knee-jerk reaction to cut ‘costs’ - arbitrary as-much-as-possible reduction of all outflows. It is deadly to confuse fundamental business model failings with working capital/cash flow issues and vice versa. Failing to clearly understand the real problems have made periods of high pressure a wholesome environment for serious management mistakes.
The companies that will emerge from the downturn the strongest will be those that use this time of uncertainty to their advantage.
Post extensive research and studies, MTI Consulting, a leading international management and strategy consultancy, launched the ‘Lean Thinking – Lean Execution’ Solution for companies to stay competitive in current times.
Commenting on this initiative, MTI’s CEO Hilmy Cader mentioned that ‘Today’s situation is not a new phenomenon. Tough times have been experienced in the past, and the insights from the winners of the past will give us a good idea as to what we can ourselves do to propel the economy forward.’
The solution’s main areas of focus are Demand Optimization, Supply Chain Inefficiencies, Ground Zero Organization and Initiatives Rationalization.
Demand optimization focuses on tweaking and building on the sound base that has been established. Presence and reach outside the country brings in not only revenue but stability as well. Fixed-cost channels which may be sidelined and under developed in easier times have great potential. In the bear market that it is today, a bargain acquisition becomes the ideal way for businesses to gain market share and move into leadership positions - in a turnkey and relatively cost effective manner. With so much talk of belt-tightening around, the consumer mindset and values must be studied closely. Products based on these values will be capture the hearts and wallets of the consumer.
Supply chain efficiencies are an integral to operating efficiently. Key aspects of the Lean-Thinking Lean-Execution model are Spend and Cash Flow Optimization and the concept of a Working Capital Manager. Energy Optimized strategy not only helps cut operating costs but also makes the business environment conscious and responsible.
Ground Zero Organizations are those that focus on viewing the organizations operations and processes without any bias and effectively incorporating a performance - based remuneration and rewards system.
This ensures that the right people are rewarded and recognized, leading to greater focus on the bottom line. At a strategic level, this means implementing tighter structures and realigning processes to enhance productivity and reduce fat. At an organization-wide level, this means imbibing a lean culture into the DNA of every employee.
Initiative Rationalization There’s no better time to rationalize the nonperformers from the performers than when the going is tough. Take a critical look at the returns that each of the following areas of your business are generating. Which products are not earning their place in the portfolio? Firms need to identify which channels need rethinking and which ones need to be developed further. The same applies to brands in the portfolio.
Of greatest importance here however is the misconception that the marketing and advertising budget needs to be revisited. Companies tend to cut spending in difficult times, creating contrarian opportunities. In fact, maintaining the promotional spend will sustain or even grow market share, since stealing share of mind is a bargain during a recession.
Consumers don’t disappear during a recession, they grow more conservative; this provides opportunities for new entrants to leverage ‘value’ brands and encourage brand switching. Historical examples of the underdogs gaining ground during a recession abound; Sears stole the market from Wards during WW2, while Kellogg beat Post during the depression; Revlon and Phillip Morris gained share in 70’s recession while Avon and Hershey lost share.
What this means to us is that there are many initiatives that can ensure that not only do companies resurface out of a bad patch intact, but emerge stronger.
MTI Consulting is an international strategy and management consultancy with operations in Bahrain, Dubai, UK, India, Austria, Pakistan, Sri Lanka, Mexico and Bangladesh – that has provided solutions to clients in over 275 projects in 33 countries across 5 continents.
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