Situation
Established more than ten years ago, a successfully developing construction company focused on a small segment with the highest customer requirements. One of the shareholders' goals was to bring the company to the international level.
The leading position in the segment, against the background of a general slowdown in the economy as a whole and the industry in particular, has created new challenges for a steadily growing business. In recent years, there has been a decrease in growth rates, but the reasons for the decline were not completely clear.
Approach
Conducting a general business diagnostics in this case was intended to test the hypothesis of the company's internal limitations that prevent the business from maintaining and increasing growth rates.
When searching for a growth strategy, the approaches of the strategic schools of Norton and Kaplan, Porter, and Mintsberg were used. A competitive and strategic analysis was also conducted, and industry trends were identified.
A macroeconomic analysis of the industry on a global scale was also carried out, which made it possible to identify trends and formulate uncertainties. In preparing the macroeconomic forecast, scenario analysis was used, which determined the strategic challenges for business at a new level.
To ensure the execution of the strategy and the size and functions of the company are adequate for the growth of the business, the methodology of a balanced scorecard and internal methodologies of our company were used.
Recommendations
During the general diagnostics, adjustments to the managerial structure were recommended, which were embodied in the internal development program. Certain management tools were recommended (corporate project management system, CRM system, system for retaining valuable employees, etc.) and the requirements for them were formulated.
A five-year growth strategy was found and formulated. The strategy was approved by shareholders and adopted by management as the basis for long-term development.
Based on the strategy, the corporate structure in dynamics was modeled and a sequence of steps for its establishment and development was recommended.
Outcomes
The implementation of the strategy ensured additional growth by 15% per annum on average, which allowed achieving the long-term goals of shareholders in terms of business volumes and provided the basis for the expansion of the business to other countries outside the CIS.
