Full fledged turnaround exercise for a food processing company in Egypt
Situation
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Toll manufacturer business model with squeezed margins; Funding mismatch triggered cash squeeze and inability to pay debt; Founder away from business for two years due to health issues
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Developed a growth strategy that rested upon four main pillars
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Review of the business model, shifting from a toll manufacturer with squeezed margins to building own brand, developing product pipeline, distribution and marketing strategies
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Design of governance model with board structure, roles & modus operandi, Internal Audit, compensation & mgmt Coms and structure, roles & modus operandi, and decision rights
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Designed new operating model including; new org structure with 4 SBUs and 5 support functions, design of new procurement, warehousing and finance processes
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Establishment of new legal structures, cleanup and restatement of financials
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A full implementation plan was designed with management buy in
Contribution
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A PMO was established to oversee implementation program (1) A detailed business plan and budget, with monitoring system (2) A phased product introduction that involved 9 products under umbrella brand (3) A distribution approach starting with outsourcing then building own fleet (4) Exports through regional distributors for four countries (5) Hiring qualified board members; managed sessions, agenda and decisions (6) Managed migration to new org structure and hiring of key positions (7) Activated IACom hiring auditor, audited / restructured warehousing system (8) Implemented new authority matrix (9) Restructured financial statements