Profitability Optimisation and Turn-Around Management

Navigator Consulting Group and the Cyprus Chamber of Commerce & Industry organised a training programme on profit optimisation and turn-around management in Nicosia in June 2011.

The global economic crisis which started in 2008 shows signs of subsiding in Cyprus, and a small economic recovery is underway. Yet the impacts of the crisis, together with the wider economic changes affecting Cyprus, will been long-lasting, particularly on small enterprises struggling to regain lost competitiveness and profitability.

Navigator Consulting Group and the Cyprus Chamber of Commerce & Industry are organised a training programme on profit optimisation and turn-around management.

This training programme addressed the root causes of declining enterprise performance among small businesses in Cyprus. The agenda included 2 days of classroom training and a one-day consultation per company.

Among the topics addressed included:

 

Selling in Declining Markets

  • Roots and impact of the current economic crisis, 2008-2009-2010

  • Prospects for the recovery

  • Long-term challenges affecting profitability and small business

  • Adapting to low-margin, low-growth environments

  • Sustainable sales practises and business processes

 

Value Stream Mapping: From Raw Materials to Final Consumption

  • Defining and mapping the value stream – process

  • Value stream mapping – financial aspects and value added

  • Other aspects of organisational and business process analysis

  • Other key indicators: speed, processing steps, defects, quality, etc.

 

Understanding Customer Sales, Profitability and General Profit-Loss

  • Defining “good” and “bad” customers

  • Understanding the corporate profit-loss statement

  • Methods for measuring sales & gross profitability per customer

 

Measuring the Cost of Sales

  • Modelling workflow in a company: what steps create costs?

  • Calculating average break-even per order; per delivery

  • Differentiating statutory P/L statement

  • Allocating overheads by work share, SKU orders, other metrics

 

Turn-Around Management Diagnosis

  • Defining the current status of profitability and business

  • Outlining options for change – defining a turn around mgmt plan

  • Sales and pricing scenarios and sensitivities

  • Changing operations and business processes

  • Developing management consensus

 

Customer Segmentation and Pathways to Change

  • Non-financial segmentation (potential vs. attractiveness)

  • Financial segmentation (Pareto, A-B-C, x-y-z)

  • Purchase characteristics and profiling

  • Contract – order variability and sensitivities

  • Relating sales and order profitability to turn around management – key indicators and means of optimising profits

 

Optimising Production and Industrial Operations

  • Producing to order

  • Lean and “Semi-Lean” manufacturing principles

  • New methods of shared cost manufacturing

  • Optimising profitability in manufacturing – relation with the turn-around management plan and key indicators.

 

Optimising Distribution and Logistics Operations

  • Physical Structure of Inventory Management

  • Shelf Space, Positioning, Flow

  • Stock Picking / Merchandising Planning

  • Delivery Effectiveness

  • Delivery Schedules and Route Planning

  • Relating distribution and logistics to the turn-around management plan and means of optimising profitability

The training was attended by 12 small enterprises that represented a cross-section of the Cypriot economy. 

Client:
Cyprus Chamber of Commerce & Industry

Date of Engagement:
June - July 2011

Countries of Operation:
Cyprus

Business Function:
Human Resources
 

Attachments
Navigator Profit Optimisation Brochure