Case study 01 · India's largest producer of rubber footwear
Rethinking the way India's footwear leader integrated its management systems
Lead indicators over lag indicators, measured against benchmarks
The client
Based in southern India, the client is India's largest producer of rubber footwear in the organised sector. Over 37 years, the company has grown to lead its segment. It began as a single raw material, multi-product company and grew into a multi-raw material, multi-product company, with state-of-the-art manufacturing facilities and testing labs across four states.
The situation
The client had set an ambitious growth target, consolidating its position in every segment and innovating in new products. As part of its growth plans, it introduced a leading ERP system for all its business processes. The leadership team was committed to transforming the organisation through professional management practices and industry best practice. To reach its targets, the company needed efficient ways to monitor business performance and to carry a performance-monitoring mindset down to the grassroots.
Abanel's contribution
The client's Board of Directors turned to Abanel to drive the change. We studied the footwear market in depth and spent time with business leaders at the client's locations to understand the market, the competition, the business priorities and the challenges involved.
We constituted a Steering Committee with representatives from the Board and the key functions. Our experience with clients across sectors helped us build credibility with the business leaders and the Board. We spent time with the ERP vendor and the implementation team to understand their experience of rolling out the system. The Steering Committee and the Abanel team then held a series of iterative discussions, each reviewed by the Board, to identify the Key Performance Indicators that would have the greatest impact on business performance.
The Abanel team was involved at every stage of the project: conceptualisation, design and implementation, including training employees and participating in the first reviews at the Functional Head level and by the Board of Directors.
Practical approach
The client wanted the latest thinking in management systems, in an approach that was practical and could be implemented with ease.
Business impact
A system that gives the Board a clear feel for the pulse of the organisation, through a well analysed, impactful set of performance indicators that help drive the business.
Scalability
To support the growth targets, the solution had to be robust enough for the multi-fold increase in business expected over the next 5 years.
Facilitate change
The change had to be facilitated well enough to win the buy-in of every employee across functions. The mandate included preparing the organisation to accept the change and sustain it.
Impact
A Steering Committee of Board members and Functional and Business Heads built a sound, collaborative approach to an impactful management review process. The client learned the significance of Key Performance Indicators, the importance of focusing on the most impactful indicators, and how to deep-dive into any indicator to understand areas of concern.
To win acceptance for the initiative, we held separate sessions for employees at every manufacturing location and office to address their questions. By educating stakeholders at multiple levels and sharing the business perspective behind the initiative, Abanel built ownership of the change.
The result is a far more effective and focused review of performance, both at the Board and among the Functional Heads. Decisions are based on data and analytical review. The focus is on lead indicators that drive growth rather than on reporting lag indicators. Benchmarks have been set for most indicators, and discussion now centres on reaching them through continuous improvement programmes. Every function understands why the organisation tracks the data it does, and every employee is aligned to organisational goals through how their function affects business results. This shared understanding has brought more inter-departmental dialogue, with the intent of building a better organisation.
“There is a lot of focus on decisions based on data and an analytical review of the performance of the organisation.”