A FTSE 200 construction company with £3.2 billion in turnover and four thousand employees sought to recover two underperforming business units with multiple brands. The commercial department was fragmented and not focused on key markets. The solution was to restructure the commercial teams into a single "go-to-market" structure, realign the brands to focus on specific market categories, and integrate sales and marketing. This approach consolidated the businesses, improved market share and financial results, and balanced relationships with suppliers. The methods were then applied across nine international companies, improving profitability.
Commercial Restructure Case Study: Group Director Drives Profit Recovery
1. Commercial Restructure Case Study:
Group Commercial Director – Multi Branded Organisation
THE COMPANY
FTSE 200 construction
distribution company. Group
turnover of £3.2bn and four
thousand employees.
Operating Internationally.
THE CHALLENGE
To recover two underperforming
business with multiple brands.
Poor ROC, high cost base with
sales and margins failing.
Loss of Market share and loss
of focus in key market sectors
added to the poor financial
performances.
The commercial department
was fragmented and working
at low value tactical issues.
Each brand operated
independently and suppliers and
customers had in-appropriate
control of the branch
management decision making.
THE SOLUTION
n Re-defined supply chain
relationships with strong
evidence based decision
processes, communicated
through the organisation
changing the balance of
power and optimised
services and terms.
n Re defined the markets the
individual brands operated
in and aligned the
business units behind the
new categories. Minimised
market crossover and
conflict and increased co-
operation and innovation
of product and services.
n Restructured the four
commercial teams.
Introduced single “Go to
market” structures and
process across 70
commercial team members.
n Integrated sales and
marketing into the new
customer focused market
categories, supporting
the group initiatives giving
single approach in each
customer market.
n Aligned >200 sales people
to specific market strategies
through results proven
strategies, centrally
managed with active
organisation input and
participation.
THE RESULT
n Two businesses
consolidated, around clear
“go to market” strategy
driven by market intelligence.
n Delivered the company
results back to pre-recession
levels Supply chain
partnering was re-balanced
and “knowledge” based
control developed in the
branches.
n Market share improved
annually. New sectors
entered and explored
through a cultural change of
challenge and testing
n The methods and processes
were taken to Group level.
9 international companies
are engaged in the process
showing group PBIT
improvement of 0.5% in 18
months, as published in PLC
group financial returns.
MOAS Consultancy andy.holmes@moasconsultancy.co.uk
“Andy is an experienced Business Director with blue chip credentials and a track record of business performance improvement. Andy goes mu ch further than being a 'safe
pair of hands' and is focused on making a difference to his business units. Building end to end profitability by working back from the customer and into supply chain. Andy has
delivered strong results and created robust and enduring teams. His energy, skills and experience lead him naturally towards businesses requiring change and refocus”
David Moody – Wolseley PLC European Marketing Director
Andy has held senior leading
positions in top 100 and 250 FTSE
companies.
Andy has successfully led
Commercial, sales marketing and
operational teams, through business
transformation and turnaround.
Extensive knowledge of supply chains,
off shore sourcing & sales. Operated
internationally and led international
and cross functional business units.
+ 44 (0) 7470 173333
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