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Ron Turk Case Studies
 

Ron Turk Case Studies

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    Ron Turk Case Studies Ron Turk Case Studies Presentation Transcript

    • Ron Turk Leading Change. Inspiring People. Transforming Organizations. Case Study 1: Home Depot Supply U.S. Post-Acquisition Business Model Transformation Case Study 2: Home Depot Supply Canada Building Nationwide Business Platform for Canadian Market Case Study 3: Wieland Designs Rebuilding Confidence and Strategic Perspective in Leadership Team
    • Situation: Purchase of Family-Owned Business by Fortune 50 Company
      • $130M family-owned Maintenance Warehouse was acquired by Home Depot in 1997. The 3 top members of the executive team left the business within 2 months of the sale, and the next in line was also transitioned out within the first year. As CFO, I was charged with providing interim leadership.
      Challenge: Transition from Risk-Averse to Aggressive Growth Model Maintenance Warehouse had been managed with a controlled growth philosophy. This conservative approach enabled more aggressive competitors to capture market share at a faster rate. The legacy business model was one of providing MRO (Maintenance, Repair, and Operations) products to apartments. There was a time when Maintenance Warehouse even limited its product line by the cost of shipping a catalog and the size and weight restrictions of third-party shipping companies. To keep front-end costs low, a catalog had been the primary sales vehicle for years, and budding direct marketing initiatives were also conservatively invested in. Major competitors were 5 years into aggressive direct sales campaigns and gaining market share while Maintenance Warehouse’s annual growth had fallen from 15% to 10%. Case Study 1: Home Depot Supply U.S. Post-Acquisition Business Model Transformation
    • Objectives:
      • Create a strategy to accelerate sales growth from less than 15% to 25% in a competitive marketplace.
      • Stabilize new management team while redesigning organization from one of functional silos to one of cross-functional collaboration and synergy.
      • Aggressively grow sales by making the strategic investments, initially reducing operating margin, but quickly reversing to higher margins on top of the accelerated sales.
      Strategy:
      • Took key members of management team offsite and facilitated strategic planning meetings to foster collaboration and create a realistic plan to achieve our objectives.
      • Focused Business Team efforts on building direct field sales teams and supportive infrastructure, including broader national account management to break into larger apartment/property management companies.
      • Directed Operations Team in redesigning distribution model to accommodate larger, heavier items while retaining acceptable delivery times, credit flexibility, and competitive pricing models. The solution was to add our own network of trucks, supplemented with local delivery services in high-density metro areas.
      • Proactively addressed opportunities in healthcare, government, education, and commercial markets through investment in direct marketing targeting these sectors and enhancing product line to meet specific industry needs.
    • Objectives:
      • Create a strategy to accelerate sales growth from less than 15% to 25% in a competitive marketplace.
      • Stabilize new management team while redesigning organization from one of functional silos to one of cross-functional collaboration and synergy.
      • Aggressively grow sales by making the strategic investments, initially reducing operating margin, but quickly reversing to higher margins on top of the accelerated sales.
      Strategy:
      • Took key members of management team offsite and facilitated strategic planning meetings to foster collaboration and create a realistic plan to achieve our objectives.
      • Focused Business Team efforts on building direct field sales teams and supportive infrastructure, including broader national account management to break into larger apartment/property management companies.
      • Directed Operations Team in redesigning distribution model to accommodate larger, heavier items while retaining acceptable delivery times, credit flexibility, and competitive pricing models. The solution was to add our own network of trucks, supplemented with local delivery services in high-density metro areas.
      • Proactively addressed opportunities in healthcare, government, education, and commercial markets through investment in direct marketing targeting these sectors and enhancing product line to meet specific industry needs.
      Company accelerated growth, increasing number of customers and penetration per customer. Met objectives of Home Depot executives who increased investment in the business-to-business marketplace, ultimately expanding to create Home Depot Supply (now HD Supply). Results: Sales Market Segments Distribution Centers SKUs Active Customers 1996 (year before HD acquisition) $130M 2 (multi-family & hospitality) 13 7,800 85,000 2004 (last year of tenure) $700M 6 (added healthcare, government, education & commercial) 20 15,000 200,000
    • Situation: Home Depot Canada Wanted to Build on Success in U.S. Pro Market
      • With the significant success of the Home Depot Supply Organization in the U.S., the President of Home Depot Canada wanted to establish a Canadian version of this model. At the time, Home Depot Canada had a strong business-to-consumer infrastructure but was negligibly penetrating the broader Pro market opportunity. A key step to further pursuing the Pro market was the launch in 2000 of Home Depot Supply Canada, an MRO (Maintenance, Repair, and Operations) model specializing in residential supplies.
      • When I came on as President of HD Supply Canada in 2005, the company had closed out 2004 with $20M in sales achieved over 4 years exclusively through organic growth. Tapping into the Pro sector represented an enormous opportunity. In addition to the B2B revenue potential, we projected from experience in the U.S. that every $1 generated through the business-to-business channel could result in a $3 increase in retail sales.
      Challenge: Diversifying Nationwide B2B Model at Quantum Speed Since the size of the Canadian MRO market was smaller than that of the U.S., it was necessary to target more diverse customer segments, and not rely on the niche approach that had delivered early success in the U.S. We wanted to quickly achieve broad geographic coverage and market diversification that would reach a sales volume that yielded acceptable levels of revenue and return. The exponential growth required— reaching $100M in sales within a few years —necessitated both acquisitive and organic approaches. Case Study 2: Home Depot Supply Canada Building Nationwide Business for Canadian Market
    • Objectives:
      • Build or acquire one or more businesses that would increase capabilities, including services, to serve a diverse group of customers and achieve critical mass necessary for success.
      • Identify strategies for accelerating growth to quickly achieve higher levels of return.
      • Find ways to increase business-to-business customer opportunities on the retail side.
      Strategy:
      • Developed existing leaders and recruited new talent, creating high-performance team capable of building and supporting high-growth business.
      • Defined target markets: Multi-Family Apartments and Condos, Hospitality, Government and Education, Healthcare, and Commercial (office buildings, strip malls, retailers).
      • Identified first-preference and backup acquisition targets, each addressing different aspects of our needs.
      • Developed programs that made it easier to promote business on both the retail and the supply sides through integrated billing, credit, delivery, and sales contact management.
    • Objectives:
      • Create a strategy to accelerate sales growth from less than 15% to 25% in a competitive marketplace.
      • Stabilize new management team while redesigning organization from one of functional silos to one of cross-functional collaboration and synergy.
      • Aggressively grow sales by making the strategic investments, initially reducing operating margin, but quickly reversing to higher margins on top of the accelerated sales.
      Strategy:
      • Took key members of management team offsite and facilitated strategic planning meetings to foster collaboration and create a realistic plan to achieve our objectives.
      • Focused Business Team efforts on building direct field sales teams and supportive infrastructure, including broader national account management to break into larger apartment/property management companies.
      • Directed Operations Team in redesigning distribution model to accommodate larger, heavier items while retaining acceptable delivery times, credit flexibility, and competitive pricing models. The solution was to add our own network of trucks, supplemented with local delivery services in high-density metro areas.
      • Proactively addressed opportunities in healthcare, government, education, and commercial markets through investment in direct marketing targeting these sectors and enhancing product line to meet specific industry needs.
      • Expanded customer base and achieved 5 critical capabilities through 2 key acquisitions ( nationwide lighting company and a regional electrical company) and a strategic partnership with a handyman business:
        • Won national market presence.
        • Acquired national sales force with established local relationships.
        • Extended existing broadline (MRO) with selectively deep product offerings.
        • Diversified service capabilities, achieving market differentiating value propositions.
        • Developed management systems and processes that were scalable for high-growth, diversified model.
      Results: Sales Market Segments Provinces Covered Active Customers 2004 $20M 2 (multi-family & hospitality) 2 6,000 2006 $230M 6 (added commercial, healthcare, government, & education) 10 30,000
    • Situation: Wieland Designs Lost Largest Customer and 3 Senior Leaders
      • Wieland Designs—a design, engineering, and manufacturing organization specializing in seating furniture—lost its largest customer and within a few years underwent major, unexpected leadership changes finding themselves in a financial decline with no clear vision or plan on how to proceed. I was called in to help. After a 7-month consulting role as interim President, I assumed full strategic and P&L accountability as CEO and President.
      Challenge: Provide Vision, Strategy, and Leadership Tools for Turnaround Senior managers had become so determined to search for new customers to replace lost sales, that they loss focus on the management of business fundamentals. Company leadership lacked the change management and strategic planning skills needed to turn the company around. There was no consensus amongst key leaders, including family, on what steps to take next. The culture of siloed functional teams made moving forward that much harder. Case Study 3: Wieland Designs Rebuilding Confidence and Perspective in Leadership Team
    • Objectives:
      • Immediately address instability at the top, instilling confidence throughout the management layers that the Company would recover.
      • Equip management team to move forward with more effective, far-reaching planning skills and systems for managing change and running the company on an ongoing basis.
      • Build collaborative, mentoring culture including integration of supporting tools to improve team processes.
      • Agree on a strategic direction for growth and create detailed roadmap for execution.
    • Strategy:
      • Implemented and facilitated ongoing Strategic Growth Planning meetings, including a 3-day offsite planning retreat, to position team for success and develop a meaningful strategy acceptable to all stakeholders.
      • Leveraged extensive leadership experience and outside executive consultant to enhance skill sets of management team in the key areas of Strategy, Leadership, and Execution.
      • Grew outside relationships in Supply Chain and R&D, teaching team how to find alternative solutions to manage business issues. Widened the perspective of the senior team to include foreign manufacturing and creative talent sourcing.
      • Supported and invested in key market opportunities in a direct-sales hospitality furniture business and an MRO (maintenance, repair, and overhaul) seating program for the airline industry. This enabled us to leverage existing infrastructure to diversify for future growth while pruning out underperforming business channels.
      • Worked with Team on organizational redesign to support higher volume and growing business.
      • Recruited new Operations VP to address significant operations issues, improve quality, and lower costs.
      • Worked extensively with business leaders on providing improved toolset, including performance management and enhanced incentive systems, improved financial reporting and budgeting systems, and strategic business development management reporting.
    • Objectives:
      • Create a strategy to accelerate sales growth from less than 15% to 25% in a competitive marketplace.
      • Stabilize new management team while redesigning organization from one of functional silos to one of cross-functional collaboration and synergy.
      • Aggressively grow sales by making the strategic investments, initially reducing operating margin, but quickly reversing to higher margins on top of the accelerated sales.
      Strategy:
      • Took key members of management team offsite and facilitated strategic planning meetings to foster collaboration and create a realistic plan to achieve our objectives.
      • Focused Business Team efforts on building direct field sales teams and supportive infrastructure, including broader national account management to break into larger apartment/property management companies.
      • Directed Operations Team in redesigning distribution model to accommodate larger, heavier items while retaining acceptable delivery times, credit flexibility, and competitive pricing models. The solution was to add our own network of trucks, supplemented with local delivery services in high-density metro areas.
      • Proactively addressed opportunities in healthcare, government, education, and commercial markets through investment in direct marketing targeting these sectors and enhancing product line to meet specific industry needs.
        • Realized 20%+ organic sales growth in existing and new markets, pairing sales gains with operational efficiencies that led to triple-digit profit improvements that well exceeded goals in my first year as CEO.
        • Equipped first- and second-tier managers with the tools to execute ongoing strategic and change management planning.
        • Received highly favorable input from Customers and Suppliers regarding the turnaround and confidence in the company under my leadership.
      Results: The Senior Management Team acquired a shared, defined vision for moving forward. Leaders were equipped with the tools and confidence to execute that vision and make strategic course adjustments after I left the company. Other key results include: