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.

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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.

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

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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.

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Among the topics addressed included:

 

Selling in Declining Markets

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• 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

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• 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

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• Defining “good” and “bad” customers

• Understanding the corporate profit-loss statement

• Methods for measuring sales & gross profitability per customer

 

Measuring the Cost of Sales

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• 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

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• 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

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• 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

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• 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

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• 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

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