I want to introduce you to Jim Clark, one of Mass Ingenuity’s high-energy senior consultants. Jim is responsible for several of our large public sector customers and several commercial ones. He is a master of creating high energy with executives and quickly driving results. Jim likes to say, “Measures are the currency of your Management System and Results Software is the bank!”
Jim’s background as an executive gives him both perspective and reputation when it comes to large transformative projects. Our customers rely on Jim’s knowledge to give them the confidence to drive their own transformations and accelerate getting results.
Jim is presenting one of our customer’s powerful success stories and how they quickly achieved amazing changes in their operations.
Aaron Howard, CEO
An Introduction From Jim..
A fast-growing precision manufacturing company achieves outstanding results in less than a year and is purchased for an amount that exceeded expectations. Read how implementing the Results Management System™ and Software helped the leadership team significantly reduce rework costs, improve gross profit margin, and increase EBITDA.
At the same time, the division reduced overtime costs and increased revenue per employee. See below for the dramatic verified client results.
Manufacturing Company: Results Management System™ and Software
Case Study #36
Project Timeline: May 2020-February 2021
Client Results and Impact
The company was especially effective at cascading its performance measures throughout the operations division. Specific results achieved by their partnership with Mass Ingenuity includes:
- Reduced rework costs from $1.86 to $0.60 (67% cost savings in 11 months)
- Improved completed manufactured unit parts gross profit margin from 30.35% to 38.80%
(27% improvement in 9 months)
- Increased EBITDA from 17% of revenue to 32% (88% growth in 9 months)
Situation: A fast-growing precision manufacturing company had very strong in-house capabilities with tight controls in compliance with industry standards and fast delivery times. On the other hand, after a sustained growth period, revenue had flattened and margins had declined, resulting in reduced profitability.
Pain: The Company was not using metrics to understand the cause of their high reworks costs and their negative impact on margins. In addition, revenue was heavily concentrated in a single customer and the company lacked a strategic plan to diversify their customer base.
Client Capabilities Needed
- Drill down from aggregate metrics into detailed metrics to drive root cause problem solving
- For example, they needed to more accurately track costs by product line and work center
- Implement “one source of the facts” despite concerns about inaccurate data
- Upgrade to a more sophisticated enterprise performance management system
- Enhance company-wide communication and accountability by leveraging real-time dashboards and visual performance management
- Align company priorities and measure progress on key initiatives.
Mass Ingenuity Provided Client with Strategic Planning, Performance Measures, and Results Software
This manufacturer engaged Mass Ingenuity to facilitate strategic planning, implementation of enterprise performance measures, and its cloud-based Results Software, including a direct connection to their ERP data. This cloud-based SaaS application is built on Microsoft® Azure® and enables 24/7 real-time visibility to all measures including their current status, trends, and specific mitigation efforts.
CEO’s Point of View
The CEO was very pleased with how well the strategic planning effort defined the leadership team’s vision and strategy. He was also impressed with how effectively Results Software provided all employees with the important details of its strategic initiatives and desired business outcomes. They leveraged this software tool to focus their monthly business reviews and to highlight key performance indicators to every individual in the company.
Manufacturing Company’s Sale Exceeds Expectations
This manufacturing company’s work with Mass Ingenuity enabled it to demonstrate its business acumen and effective management practices to its prospective buyer.
The CEO was convinced that their work with Mass Ingenuity and Results Software enabled it to quickly sell the company for an amount that far exceeded their expectations.
“Our decision to work with Mass Ingenuity was a great investment. Working with their team gave our leadership team the business tools and best practices to take the company to a higher level of performance. They facilitated us through important conversations we weren’t having on our own, which enabled us to build and implement a strategic plan that quickly changed the course of our business and financial results. The measures were shared company-wide, allowing us to identify areas of concern and drive improvement. Our return on investment was 7:1 and had a significant impact on the eventual sale of our company.
The Mass Ingenuity team guided us seamlessly through the implementation process. Our aggressive implementation schedule was no problem for their experts, and they offered creative solutions to avoid costly system upgrades and provided stellar IT support. The Mass Ingenuity team was a true pleasure to work with and I would recommend them to any company striving to achieve operational excellence.”
Chief Administrative Officer (former)