Strategy re-positioning projects, based on our industry expertises.
STRATEGIC CHANGE
Strategic re-positioning of a NDT service company
Context and Objectives
Company is composed of 6 subsidiaries with a global presence (US, Europe, Africa, Asia).
A new CEO is appointed. He wants to revisit the positioning of the company on its market, and elaborate a 5 years strategic roadmap with significant growth.
Results
Strategic plan validated in BOARD : revenue targets, EBIT and investments.
New company portfolio (product and services) supported by local R&D in specialized subsidiaries and strategic partnerships
M&A strategy per region to support international growth
Industrial strategy review for the defense industry
Context and Objectives
A leader of the defence industry wants to reposition one of its sites in the overall industrial strategy and footprint
The COO of the group asks STEP Consulting to perform a 4 month project in order to:
- Perform a diagnosis of current activities and skills of the site
- Propose a focused list of activities to be developed, and associated needs in terms of skills and investments
- Build a transition plan with the operational management team
Results
Full review of the current portfolio of activities
- P&L recalculation to highlight real rentability of each activity
- Skills and workforce review
- Business potential review
5-years master plan and industrial strategy validated at CEO level, and involving evolutions of operations governance
Detailed, 6-months action plan per activity engaged with local teams
Project is managed at executive management level
Growth strategy plan for a services company
Context and Objectives
STEP Consulting supports elaboration of the strategic plan cascading executive committee objectives:
- Accelerate & increase External Market growth
- Reduce dependency to some historical customers
- Develop competences to deliver added value Services
- Define priorities per industrial sector and area
Results
Plan for +120% growth on 5 years agreed by CEO
Vision formalization in line with Executive Committee requirements
Investment decision in North America
Quantified targets definition per business unit
On boarding of management and sales team; agreement on the urgency of change
Mergers, Acquisitions and PMI
Pre-acquisition opportunity study to expand in services
Context and Objectives
In the frame of the development of its services at a 10 years range, a leader of the aerospace industry wants to assess the opportunity of an external growth. In 3 months, STEP Consulting assists this industrial player on the following investigation axes:
- Identification of customer needs and limits of current market model
- Market evaluation and segmentation on several axes:
- Customers size and behavior (outsourcing trends…)
- Product complexity and type of adapted service
- Market captivity (predominance of some suppliers, providing a full set of services…)
- Identification of airframer’s competitive advantages on each segment,
- Scoping and estimation of an “accessible market”
- Study and prioritization of 20 potential targets through weighted multi criteria scoring (operational and financial stakes and barriers)
- Identification and estimation of post merger synergies
Results
2 targets recommended for an external growth
Study transmitted to the executive committee of the group
Transaction implemented with one of the recommended targets
Post-merger integration of an OEM with several service companies
Context and Objectives
An aerospace group wants to develop a subsidiary dedicated to after-sales activities, and integrate the flow of repairs and spare parts from all entities.
The associated risks and opportunities must be identified for each case.
STEP consulting supports the definition of a roadmap by entity:
- New business target
- Supply-chain optimization (costs and stocks)
- Organization roles & responsibility
Results
8 business units analyzed (in 5 different countries)
Recommendations provided according to different market (general aviation, helicopters, commercial aircraft)
- Spares flow integrated from 3 global poles
- Repair network optimized to match customer needs
- Technical support integrated
Industrial benchmark for post-merger integration
Context and Objectives
In the frame of the biggest merger in the smart-card industry, a leader acquired one of his competitors and doubled his size.
The challenge is to integrate two entities with different managerial cultures.
STEP consulting support the company by benchmarking industrial operations (10 factories in 4 business units) to identify possible improvements in manufacturing costs and lead-times and also interface with corporate functions.
The method used:
- Definition and scope selection.
- Collaborative construction of a bottom-up cost model to compare performance
- Analysis of costs sensitivity to industrial parameters with purpose to harmonize practices and quantify improvement plans
- Analysis of process variability step by step
Results
Identification of shared industrial best practices for cost and lead time, based on a common understanding of industrial performance
Identification of x0 million € of savings potential over a baseline of 50 millions direct manufacturing costs
Identification of ~30% Lead Time reduction in Manufacturing activities
Carve out management
Context and Objectives
Following the acquisition of a new spares distribution company it was expected to carve-out an internal activity in order to create an integrated subsidiary
The main difficulties were related to:
- Organization
- Social impact (HR contract changes)
- Information System harmonization
Results
Definition of a robust integration plan
Definition of a realistic Information System to-be architecture
Acceptable HR contract adaptation
To-be organization, including governance model
Implementation plan & business case update
Mergers, Acquisitions and PMI
Pre-acquisition opportunity study to expand in services
Context and Objectives
In the frame of the development of its services at a 10 years range, a leader of the aerospace industry wanted to launch a study to assess the opportunity of an external growth. In 3 months, STEP Consulting assisted this industrial player on the following investigation axes
- Identification of customer needs and limits of current market model
- Market evaluation and segmentation on several axes
- Customers size and behavior (outsourcing trends …)
- Product complexity and type of adapted service
- Market captivity (predominance of some suppliers, providing a full set of services …), …
- Identification of airframer’s competitive advantages on each segment,
- Scoping and estimation of an “accessible market”
- Study and prioritization of 20 potential targets through weighted multi criteria scoring (operational and financial stakes and barriers)
- Identification and estimation of post merger synergies
Results
2 targets were recommended for an external growth
The study has been transmitted to the executive committee of the group
Transaction was implemented with one of the recommended targets
Post-merger integration of an OEM with several service companies
Context and Objectives
An aerospace group wants to develop a subsidiary dedicated to after-sales activities, and integrate the flow of repairs and spare parts from all entities
The associated risks and opportunities must be identified for each case.
STEP consulting supports the definition of a roadmap by entity
- New business target
- Supply-chain optimization (costs and stocks)
- Organization roles & responsibility
Results
- 8 business units analyzed (in 5 different countries)
- Recommendation provided according to different market (general aviation, helicopters, commercial aircraft)
- Spares flow integrated from 3 global poles
- Repair network optimized to match customer needs
- Technical support integrated.
Industrial benchmark for post-merger integration
Context and Objectives
In the frame of the biggest merger in the smart-card industry, a leader acquired one of his competitors and doubled his size.
The challenge is to integrate two entities with different managerial cultures.
STEP consulting support the company by benchmarking industrial operations (10 factories in 4 business units) to identify possible improvements in manufacturing costs and lead-times and also interface with corporate functions.
The method used
- Definition and scope selection.
- Collaborative construction of a bottom-up cost model to compare performance
- Analysis of costs sensitivity to industrial parameters with purpose to harmonize practices and quantify improvement plans
- Analysis of process variability step by step
Results
Identification of shared industrial best practices for cost and lead time, based on a common understanding of industrial performance
Identification of x0 million € of savings potential over a baseline of 50 millions direct manufacturing costs
Identification of ~30% Lead Time reduction in Manufacturing activities
Context and Objectives
Following the acquisition of a new Spares distribution company it was expected to carve-out an internal activity in order to create an integrated subsidiary
The main difficulties were related to
- Organization
- Social impact (HR contract changes)
- Information System harmonization
Results
Definition of a robust integration plan
Definition of a realistic Information System to-be architecture
Acceptable HR contract adaptation
To-be organization, including governance model
Implementation plan & business case update
GROWTH STRATEGY
Development of Flight Hour Services
Context and Objectives
STEP Consulting supports this manufacturer in defining and deploying a new “Flight Hour Services” offer:
- Project framing and stakes/objectives prioritization
- Definition of the strategy (market and products, Make or Buy, …)
- Business Model Definition
- Definition of the management processes (sales, purchases, operations) of these new services
- Establishment of a new organization (plateau) to support the launch of the activity
- Definition of the Business Case (market share, investments, revenues, risks, …)
- Support for the definition of commercial offers
Results
FHS Service ready and offered to operators
Several multi-year contracts sold generating ~x0 M€ turnover in 2011
Creation of a dedicated organization (~x0 p) starting by a plateau
Creation of a subsidiary to benefit from leveraging effect on debt.
Green light from executive committee to invest in stock through financing subsidiary (SPC)
Identification of levers to improve sales efficiency by 30%, at service maturity
Development of Performance Based Contracts in aerospace industry
Context and Objectives
As part of the development of its services, and to meet market demand, a helicopter manufacturer wishes to define and implement multi-year maintenance contracts for operators.
STEP Consulting supports this customer to
- Analyze the market and select customers to target in priority
- Create the offer, including processes and contracts throughout the value chain (customer – OEM – suppliers)
- Define a business case and a risk and cost model, reusable for future offers
- Provide the sales force with a dedicated toolbox
- Adjust the organization to operate these contracts
Results
Market analyzed and segmented, 20 priority customers identified
Offer defined by market segment; standard “statement of work” (technical terms) defined as well
Performance and penalty schemes defined
Models enabling control of these complex offers:
- Simulation of aircraft availability
- Quotations (costs and prices)
- Sizing stocks
- Risks and exposure
Missing capabilities identified, action plan defined
Service tested on an international offer
Re-positioning and transformation of a cabin outfitter
Context and Objectives
Our client is a service provider in the aerospace industry. He is stuck in a declining market and already started a down-sizing plan to face activity ramp down and lack of new orders.
On request of an executive board member, STEP Consulting supports the feasibility study of a new business model, in a 5 weeks time frame.
3 organizational scenarios are considered:
- Light Integration within the mother company services department
- Full Integration within the mother company services department
- Dismantling of the subsidiary
Results
A complete dossier has been provided and validated with the Board of Director
- Market assessment using top down and bottom up approaches.
- Segmentation of our client potential offers and sizing of achievable market shares.
- Business models definition
- Current deals and prospects analysis
- Human resources down-sizing plan
- Organization scenarios analysis
- Validation of the preferred scenario
