MTI Consulting launches ‘Trim and Fit’
Prevail in tough times - seize the upsides:
Based on extensive research of how businesses have responded to
crisis, MTI has launched the ‘Trim and Fit’ - a performance-driven
consulting solution to help companies prevail (not just survive) during
tough times and seize upside opportunities.
Hilmy Cader, CEO of MTI Consulting said, “A common feature of all
financial crises that the world has faced over the last 371 years (from
the Tulip in 1637 to Great Depression of 1929 to current Global
Financial Crisis) is the collapse of some of the strongest companies
that enjoyed meteoric rise in the good times.
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Hilmy Cader |
The way in which companies respond to the crisis, is what separates
the ‘living’ from the ‘departed’. Most organizations tend to
indiscriminately cut costs, freeze all forms of developmental work and
adopt a ‘wait and see’ approach. By contrast, the Smarter Companies (we
call them ‘Trim and Fit’ companies), while being prudently cautious, use
the crisis period as an opportunity to critically evaluate every aspect
of their businesses, challenging every dollar and every stroke of work
as to the value added. They also see the upside of acquiring low valued
assets, strengthening their market position (given lower level of
competitive / marketing activity) and gearing their organizations for
the upturn.”
During the analysis phase, the risks are assessed, stress tests are
carried out and the upside opportunities are assessed - all of which
provides the inputs for the core strategizing phase.
This starts with aligning the strategy to meet specific tough times
conditions (specifically in terms of rationalizing and de-slacking the
business model), followed by taking the ‘fat’ off the processes, before
developing a lean structure - all of which is finally driven by ensuring
staff are motivated (through win-win initiatives like Performance-based
Pay).
Explaining two key features of the model, the CEO of MTI said “Trim
and Fit looks first at cost rationalizing based on Vertical Costs (based
on a Value Chain P & L) - as opposed to conventional horizontal cost
cutting, which runs the risks of cutting off the ‘veins and arteries’ of
the business model.
Most importantly, the head count is considered as a last resort (only
after the slack in the Strategy, Processes and Jobs are taken out) and
even if head count needs to be cut, retrenchment is the last option.”
The final phase of realize is intended to swiftly implement the
changes - in keeping with the Trim and Fit philosophy of
‘Direct-2-Bottomline Impact’. This is achieved through the following
measures:
* An inclusive and interactive process that see key internal
stakeholders being part of the analysis and solution development
process, via consulting workshop and consulting clinic
* Based on strong analytics as the foundation of the solution
* Extremely lean and effective documentation, with the focus being on
Straction (converting strategy to action) and swiftly to implementation
* Given the above, ensuring rapid and condensed project timing
* Internal marketing and sensitivity appreciation to ensure smooth
executions
* Implementation audits by MTI to ensure it is being effectively
implemented.
Net-take
* Be tough in anticipation of tough times
* If not, be ready for tough decisions (surgery may be inevitable!)
* Seize the downturn opportunities. |
