Business Case Studies​

Company Background:A successful home services, trade-based business wanting to grow and achieve their full potential.Challenge: Transactional CompetenceWhile there was a desire to grow and achieve the potential the business offered, there was no clear business plan or even an idea of how they were going to achieve their goals. There were lots of possibilities for the owner of the business to consider, and that was the problem. What was needed was clarity of direction and confidence that the right decision had been made.Solution:Initial discussions with the client revealed a multi-focused offer – Wholesale, Retail, Installation, Online Sales, and a realisation that it was going to be difficult to be good at all aspects. Where to focus and be crystal clear about the business operations and offering, was the key.Bowman Associates’ focus was to set up a structure to flesh out the details of the plan, then implement that plan by:– Looking at individual aims across a range of areas – Clarifying those aims to inform the business aims  (what does the business have to do to satisfy the shareholders)– Picking a single focus for allocating those resources– Developing commitments that were specifically crafted to support the strategy of the business, so that implementation of the business plan was simple and predictableResults:Year on year, monthly sales have more than doubled and the trend in the gap is increasing. The client now has great clarity in his business thinking, his aims, how and what is needed to reach them and a model of what it will look like when achieved. They have clearly articulated the aims of the business, developed a plan to achieve those aims and recognised the resources available, and channelled those resources into a single area of focus. In focusing solely on the Online Sales channel, they have crafted a set of tactics specifically for their resources, that follows a plan to achieve their unique aims. Competitors could copy their tactics but they would not get the same results because they will not have done the same degree of specific and accurate thinking designed for their circumstances. This was the differentiation in the market that the client sought.  

Company Background:Operating in one of the construction sub-trades, with commercial and residential clients, this company had experienced fluctuating sales and profitability. Because of this they assumed that having a spread of areas to work in would insulate them from the ups and downs in the market.Challenge: ExchangeThe problem was they were spread too thin: they did not have the resources to be really good at what they did. Symptoms included gaps in performance of the team, mistakes and poor productivity, stress, and management constantly ‘fighting fires’. Unknowingly, because they were not focused, they had built complexity into the business and that complexity was costing them dearly. The work they were winning was on average, at a gross profit margin of 35%, however when complete and back costed they were only achieving on average, 21%. They had margin erosion of 14% and on a turnover of $2.9m that was costing them over $400,000 per year. That had to stop.Solution:Bowman Associates’ solution to this all too common problem, was to clarify where the leakage was occurring, map the complexity and determine the value created by each action in each part of the business. We then considered the aims of the business, the resources available, then helped our client construct a strategy and aligned commitments that brought focus and concentration to what the business does.Results:The client became very clear on the value it provides to a specific set of customers. So much so, they restructured the business: jettisoning the non-core, underperforming parts so that they could deliver superior value with the resources they have. The business is simpler and this has freed up management time for more work ‘on the business’. They now have a more predictable sales funnel and cashflow. Turnover has remained at similar levels, overheads have gone down (less staff) and margin erosion has reduced to 5%.

Company Background:A small construction company, less than five years old and achieving income of around $2 million, knew they could be doing better but couldn’t put their finger on what the issue was.Challenge: InformationThe problem was they did not know for certain, where their resources were being consumed. They just hoped there was a margin at the end. Bowman Associates' identified their challenges as being:Improving productivityManaging people well (communication)Efficient business systems and effective use of technologyManaging cash flowToo much time spent ‘fighting fires’ All of the above are symptoms of an underlying issue: complexity, which was pervasive.Solution:Bowman Associates’ initial engagement was to literally map the complexity in the business, using state-of-the-art software to give an ‘as is’ model of the business, analyse what we found, then recommend a ‘future state’ model.Results:Over several sessions with the client, we were able to build a dynamic model of the business that captured all their information inputs, actions and information assets (outputs), the people involved along the way (and their cost), plus the systems that were used i.e. more than process mapping. We also captured the duration and frequency of actions, to give a value and cost for every action taken. This proved to be most insightful. For example, one of the directors (a key person in the business), was shown to support 19 outcomes by performing 85 actions, using 30 systems and producing 94 information assets. Complexity was at play!With a visual map of the business and having identified where complexity was hiding, it was a straightforward task to bring simplicity. Bowman Associates' did this by dramatically consolidating the systems used down to five, and by doing so, automating many of the actions. By eliminating virtually all the low value actions, this freed up the director’s time to manage his staff and suppliers well and work on his business. Cash flow is now under control. Our next area of focus is client growth and profit improvement. 

Company Background:A professional services practice formed by the amalgamation of several smaller practices, covering a wide range of residential and commercial projects. Growth has been good, but in some ways, too good.Challenge: PeopleWhile the directors had spent time ‘on the business’ agreeing on a direction, the value each brought to the table and the values they shared, there was still a sense that something was missing. What brought this to a head was rapid growth in terms of work and staff and the follow-on problems of inconsistency of outputs and performance. This resulted in erosion of margin and reputation.Solution:Initial discussions with the client revealed a lack of clarity around aims, and a desire to be crystal clear about how the business operates. Bowman Associates’ focus therefore was to:Look at individual aims across a range of areas for each director/shareholderClarify those aims and combine to inform the business aims (what does the business have to do to satisfy the shareholders)Hold a workshop for directors and key staff to create a future that all staff are aligned to and motivated by Determine an emotional connector as the backbone for internal and external communicationDetermine a high-level plan to take the business from its current state to the future state, by understanding the resources available/neededSet up a structure to flesh out the details of the plan, then implement that plan  Results:A focused and energised team where everyone could articulate what the business was about, their role in the business and the value that clients got from engaging with them. Because of this, the business profitability grew by 18% in six months, clients were happier (the business was delivering) and the directors found that the time previously spent fighting fires, could now be focused on further enhancing the business. ROI: the return on investment in taking this path was $6 for every $1 invested.