Business Improvement Case Studies

Improcus restructured ledgers, collaborated with the executive team to create a clear picture of the current status.

Introducing the M4RI identified a lack of understanding and control of expenses, together with poor budgeting processes. Improcus managed the implementation of a correctly formulated zero based budgeting process. Costs were reduced immediately following a severe reduction in turnover.

Creating a simple business plan provided the executive team with a reference guide, allowing the business to reduce costs in a short period of time, generating a saving of $1m on fixed overheads of $4.6m = a 20% reduction in expenses!

The business moves forward today in a profitable, successful way with a clear vision of staying on track.

The M4RI identified working capital and accounts receivable were an issue and the benchmark identified the extent of the problem.

Improcus instituted a plan of action using the Power of 4 through understanding the Process, Proficiency and Productivity.

Working with the team, we were able to reduce the debtor’s days from 57 to 45 days, together with a cash inflow of $1.3m on a debtor’s book of $4.8m.

The saving of 27% reduction in debtors also ensured the shareholders’ exit plan was maximised in terms of cash and working capital.

The M4RI was introduced and highlighted a number of issues. The management team lacked understanding of key financial concepts, the financial reports were not timely and the accounting staff required training.

Improcus used the M4RI to help management understand the business and concept of ROCE and the key levers to improve the business performance. Using the Power of 4 through understanding the Process – Proficiency – Productivity of the accounts department, management accounts were produced within 5 days of month end saving 4 weeks of the financial controller each month.

The improvements also resulted in the accounts department being restructured, generating a cost saving to the business.

The M4RI was introduced and highlighted the fixed overheads in were above the benchmark for the business to achieve a reasonable return for shareholders.

Improcus instituted a plan of action using the Power of 4 through understanding the Process – Proficiency – Productivity of all areas of the business.

As a result the business achieved a higher service delivery to customers, productivity in all departments improved and fixed costs reduced by $1,8m or 23%.

The M4RI was introduced into the business and it identified the need to increase revenue / sale of new franchises.

Improcus undertook a review using the Power of 4 through understanding the Process – Proficiency – Productivity of staff in the sales process. As a result the sales process substantially improved reducing the conversion time from 6 months to 6 weeks and identifying the correct potential customers.

The proficiency of the staff was highlighted, with a restructure taking place and a resulting cost saving to the business.

The M4RI highlighted a lack of understanding of financial information and the need to report on a regular basis.

Once this was implemented it highlighted reducing margins in product lines and high overheads.

As a result manufacturing of key product lines was “off-shored”. The overall gross margins in the business improved as a result and overheads were reduced through restructuring.