With the STIEL-approach we determined the best strategy with the available resources, machines and people.
The merger of two production companies with approximately 2,000 clients has caused unrest on various fronts, from production to sales and HR. There is significant employee turnover and dissatisfaction among staff. Although the newly formed merged company (hereinafter referred to as ‘A-brand’) remains profitable, customer complaints are increasing. These complaints include extended delivery times, product quality, and service provision. Additionally, competition is fierce. With looming declines in figures, action is necessary to prevent further loss of market share for A-Brand. Bert Bult from STIEL steps in for a comprehensive strategy development, impactful process improvements, and a renewed brand identity. These elements contribute to impressive results. It all begins with conversations with customers and team members.
Strategy based on thorough analysis
The merger of the two companies is proceeding sluggishly, affecting both sales and production. Customers are turning to alternative products from competitors, causing A-Brand to gradually fade into the background in stores. STIEL embarks on discovering the most valuable information: direct contact with consumers. We visit numerous sales outlets spread throughout the Netherlands.
The STIEL approach always begins with getting to know the business and the people. Understanding the company culture forms the core of effective changes. We conduct extensive research and listen to the experiences of consumers. Although the solution may not be immediately apparent, we develop a strategy with an executable plan to provide the right guidance for all necessary steps.
After thoroughly examining all departments, including sales, finance, production, HR, and service, STIEL instructs A-Brand’s management team to map out the events of the past seven years, in close collaboration with various departments within the company. This provides the entire company with insights into sales figures, customers, and customer satisfaction.
On board with insights
The next significant step is the two-day intensive strategy session. It’s the golden formula for uncovering the deeper layers of A-Brand. On the first day, the current situation at the sales outlets is presented, including the brand position and other relevant aspects such as all financial figures, production results, and lead times for complaint resolution. It becomes evident that customer satisfaction is particularly low due to delivery times, lagging service provision, and product quality, while staff turnover is high due to a lack of team cohesion and direction.
On the second day, STIEL presents a visual representation of all observations from the first strategy day to validate them with the team. Does this align with what they perceive? Subsequently, the team poses the question: what do we actually want to be, and how do we want to position ourselves in the market? These two-day strategic sessions also foster a valuable positive team dynamic.
The outcomes determine the strategy and subsequent steps. The key pillars of the strategy are reliable delivery, high product quality, and excellent service provision. Therefore, the first step is to optimize production for reliable delivery within five days. Another crucial step is to develop an attractive presentation of the collection for customers in the store. Despite the high quality of the existing collections, they are not prominently displayed at the sales outlets. The challenge lies in putting A-Brand back in the spotlight and presenting the collections attractively.
