ReStructuring when the going is good

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Re-Structuring when the going is good

• The Story of
• Sara-Lee - MAS Slimline

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MAS Slimline

• In 1993 MAS Slimline was only an idea
• With
• A bare block of land
• The blessings and backings of MAS Sara Lee
• The Grit Unwavering Determination of a Start-Up
  Team
• First
• Shipment to Marks Spencer
• Year revenue of US 4.3 Mn

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All of this got us to .(In 2003)
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2003Weve been Successful!

• But we cannot rest on our laurels because ..

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Business Challenges

• Bye Quota in 2 Years (2005)
• Chinese Rag Revolution
• Gradually rising costs
• Measured by the standard cost per hour
• 3 Organizations evolved individually
• 3 Structures, 3 Systems, 3 Cultures
• Room to rationalize
• Success leading to
• Operational Fire Fighting Vs. Strategic Focus

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We need an Expert help to

• Work with us
• Challenge us
• Bring cross-industry / cross-border experience
• Essentially NON-Apparel

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4 types of Customers who visit our Strategy
Clinic

• Surgery before the last breath !
• Ailing but Curable !
• Success Overdose / Fitness Fanatics
• Quick Fix / Face Lift

MAS Unichela-Slimline
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Unhealthy Symptoms of Success

• Consumer Warning
• You may not suffer from all
• Limitations of the naked eye
• and the naked mind

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Unhealthy Symptoms of Success

• Assured Business Syndrome
• Customer Insensitive
• Tolerance for Cost, Inefficiency Arrogance
• Strategy in Silos
• Incrementalism

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Unhealthy Symptoms of Success

• Not asking the hard questions
• Fear of rocking the boat
• Structure
• Not-Aligned to Strategy
• Status Symbol
• Permanency

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Unhealthy Symptoms of Success

• Senior Management Games
• Assuming life membership
• Empire Building
• Middle Management Games
• Policing
• CYA
• White Collar Crime

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MTIs Assessment? Re-invent your business
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Aim

• Gear up for 2005
• Market Responsiveness
• Synergies
• Best practices from other industries
• Standard Cost Per Hour to US ___

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The Prescription (Applied)

• Principles
• Strategizing
• Structuring

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Re-Inventing the Business Model 4 Key
Principles

• Ground Zero
• Laser Beam Bottom-line Focus
• Inclusive Process
• Mind-set for Change

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The Prescription

• Principles
• Strategizing
• Structuring

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Vision
1- 10- 300
To be the No.1 preferred design-to-delivery
partner of the worlds leading brands of
Intimates by 2010 with a turnover of US 300
Million
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Strategy Framework
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Strategy Framework

• Wardrobe
• Fickle Fashion
• Affordable Fashion
• Sensitization Predictors
• Categories
• Focus on Intimates
• Plant / Customer - Product Specialization

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Strategy Framework

• Geo Markets
• High dependence on UK US
• Euro Mapping
• Retailing Delivery
• Faster, Real-Time Replenishments
• Delivery Solutions

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Strategy Framework

• Brands
• Power of Value Brand
• Market Share Fragmentation
• 2 high dependence customers
• Lock in high dependence customers
• Deeper seamless customer alliances
• (Past) Small volume customers ignored due to high
  cost
• Portfolio Rationalization
• Pick nurture future stars

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Strategy Framework

• Manufacturing
• Additional Capacity Building Time Investment?
• Buy Plants
• Wet Dry Leasing
• Customers Demanding
• Cost Deflation
• Operational Transparency
• Higher Compliances
• While our costs were rising
• Lean Manufacturing (TPS)
• Small Order Flexibility (Fast React)

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Strategy Framework

• Sourcing
• Merchandisers Inefficiencies
• Redefined Role / Centralized Disciplines
• Regional Sourcing Capabilities
• Design Development
• Customers looking for
• Cost-Effective Design Alliances
• Fewer Full-Service Providers

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Strategy Framework

• CRM
• Fire Fighting / Activity Syndrome
• Person-dependent relationships
• Business Management
• Long term manufacturing competitiveness?
• Invest in
• Design Capabilities
• Capacity Management

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The Prescription

• Principles
• Strategizing
• Structuring

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Structure 2002 Issues

• 3 Fully Fledged Organizations with all
  functions
• Synergies not optimized
• Functional inefficiencies concealed

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StructureConceptually Demolished

• (No exceptions)

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Structuring process starts with Value Flow
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The Sequential Value Flow (On a Ground Zero
Basis)
Customer Conversion
Product Development
Order Conversion
Sourcing
Ware- housing
Cutting
Manufacturing Operations
Warehousing
Freight Logistics
Payments
Customer Satisfaction
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The Sequential Value Flow (On a Ground Zero
Basis)
Customer Conversion
Product Development
Order Conversion
Sourcing
Ware- housing

• Non Sequential Value Functions (5)
• (On a Ground Zero Basis)
• Finance
• HR
• Quality
• Compliances
• Premises

Cutting
Manufacturing Operations
Warehousing
Freight Logistics
Payments
Customer Satisfaction
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8 Business Function(Direct Reports to MD)

• Marketing Customer Alliance
• Development
• Sourcing
• Operations
• Manufacturing
• Quality Compliances
• Human Resources
• Finance Mgt. Control

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Structure Transition Challenges

• From 3 business units to 1
• From business units to value functions
• Functional Separation
• GM Status

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Structure Transition Solutions

• For each function
• Business Health Indicators
• SCPH
• Baton Change Indicators
• God Fathers for Transition

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From Functional to Operational Structure

• Tasking
• Sourcing
• Jobbing
• Linking Layering
• Job Focus

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The Prescription

• Principles
• Strategizing
• Structuring

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Living
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Living - Challenges

• Buy-in?
• Implementation?
• Pressure to
• Delay
• Retract
• Procrastinate
• Rumours Gossip

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Living ChallengesLiving Solutions
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Living Solutions

• Deliberated Decisions -gt Immediate Announcement
• Regular, Candid Communication
• Message of We mean business Plan for
  Turbulence
• HR Helpline
• Transition Team (God Fathers)
• Immediate G8 (Board) Appointment
• Monthly G8 Summits
• Business Health Indicators
• Baton Change Indicators
• Launched the new entity