Chem-Resist Case study
The Company has worked extremely hard to achieve this result, and due recognition must also be given to MAS specialist Krys Szokalo and his team for facilitating the strategic planning and implementation programme".
COMPANY PROFILE
Dewsbury based Chem Resist has enjoyed over 40 years experience in the design, manufacture and installation of chemical process plant and chemical tanks, working with a veritable who's-who of leading companies across the Chemical, Pharmaceutical, Water and Power sectors...
Names such as Glaxo SmithKline, Kodak, Corus, Agfa, Yuasa Batteries and Thames Water put their trust in Chem Resist's highly experienced workforce.
BACKGROUND
The decision to call for a strategic review came from the company's directors.
Recent years had seen margins significantly improve (via efficiencies across the site coupled with cost reductions) but over the same period turnover was flat lining...
And whilst the directors knew that many of the important boxes relating to quality, client confidence, manufacturing efficiency and overheads had been ticked, they wanted to ensure that the long term business plan they had in place was robust enough to stand up to detailed scrutiny, and that all issues had been fully considered during its preparation...
"To quote Michael Gerber", says Managing Director Simon Hewitt, "we wanted a view from someone used to working on a company and not in a company - a more detached view".
MAS was asked to help facilitate a full strategic review of the business and MAS specialist Krys Szokalo - using the EEF Strategy Blueprint tool - took Chem Resist through a structured process which analysed the business, its people, products, external environment and a range of external influences.
A further key objective of the review was to assist the directors in the implementation of a planned MBO by Simon Hewitt who says the succession plan was put in place some three years ago when the Chairman and owner Seamus Quinn opted to take a less hands-on role at the company when he reached his mid fifties...
Says Seamus:- "It is recognised that succession issues can be a problem, particularly within smaller businesses, so we elected to carefully progress the buyout over a period of time - a process which has gone very smoothly indeed with the invaluable help of Krys and his team"
As part of the long-term plan Seamus retains the Chairman's role as he is recognised as a charismatic and influential figure not only within the industry but also within Chem Resist's client markets.
BACKGROUND
- Following this review, Chem Resist now have a robust strategic plan for the future and it is already delivering significant benefits, as detailed here:-
- A 22% increase in turnover with no increase in staffing levels.
- Better identification of new markets, their size and potential.
- New opportunities to offer "total solutions" packages to their existing clients rather than being typecast as a single product supplier.
- Development of the company's resale/distribution business.
- Consistent gross margins and return on sales.
- A successful MBO.
MAKING IT HAPPEN
To take forward the results of the strategic review, Chem Resist have redefined the business into three main streams and refocused their selling process in a more structured and proactive way.
Management have developed and cascaded key performance indicators and milestones across the entire business, giving them regular access to accurate information which enables them to ensure strategic objectives stay on track.
The strategic review has also identified the need to change attitudes in the factory, moving towards more staff empowerment, improving focus on already high levels of customer service, introducing performance measurement and more structured and regular communication with employees.
The senior management team are confident that, over the next 2-3 years, the strategic plan and objectives derived from the review will be achieved.
