top of page
Writer's pictureDr. Marvilano

How to Deliver Transformation / Turnaround: 33 Ways to Amplify Your Profit Quickly


0. Introduction to Profit Amplification Program


Amplifying your profit is hard when you don't know where to start. But it will be much easier if you know what-to-do and how-to-do-it.


Hence, in this Profit Amplification Manual, I would like to share with you: 1) ideas on how to significantly improve your profit, and 2) guides on how to implement the ideas.


You can use this manual to develop your profit amplification strategy and its implementation plans. The ideas in this manual will help you to:

  • Improve financial results, including cash flow and profit;

  • Respond to negative macroeconomic and market changes, and reduce business marginality;

  • Become a cost leader;

  • Achieve a healthy profit margin;

  • Prepare the company for significant changes; and

  • Prepare and launch a system for continuous improvement.


The manual is derived from my experience successfully delivering multi-million dollar impacts for various companies over the last 20 years. It is not intended to become the ultimate truth. It is intended to be a helpful guide to help you design and execute your transformation/turnaround projects.


While the ideas presented in this manual shall apply to your company, you will still need to adjust the approach based on the exact situation and condition of your company. Think of this manual as the starting point of your breakthrough profit growth.


The remainder of this manual is structured as follows:


Successfully amplifying profit feels great
Successfully amplifying profit feels great

 

1. Overview of Profit Amplification Program (PAP)

This section provides a brief summary of PAP. Read only this section if you are short on time.


1.1 What is a Profit Amplification Program?

A Profit Amplification Program (PAP) is a complex set of long-term and short-term initiatives designed to reduce costs or increase margins.


Each initiative is based on an analysis of the company's operations, strategic position, and full potential assessment. The program should necessarily include initiative implementation planning, taking into account their interrelations and the specifics of the company.


1.2 Three Different Approaches to Profit Amplification Program

You should tailor your approach to the specific situation of your company. The spectrum below is useful to help you think about your profit amplification approach:


1.2.1 Transformation scenario

If you have a comfortable starting point (i.e., a healthy financial position) and aim to dominate the market (i.e., become the market leader), then you may consider the following approach:

  • Long-term initiatives, absence of quick results (>12 months).

  • The necessity of considerable investments.

  • 'Game Changing' initiatives (e.g., artificial intelligence and robotic automation, digitalization of supply chain, new shiny and highly efficient factory, etc.).


1.2.2 Turnaround scenario

If you have a burning platform (i.e., a difficult financial position) and aim to survive (i.e., avoiding insolvency), then you may consider the following approach:

  • Short-term initiatives with quick results (within three months).

  • Quick-win results, maybe to the detriment of long-term objectives (e.g., postponing strategic capital expenditure, upsetting suppliers by extending payment terms).

  • 'Cash flow increase' initiatives (e.g., working capital improvement, spending tightening, etc.).


1.2.3 Growth scenario

If your starting point is somewhere in between the Turnaround and Transformation end-spectrum (i.e., stable financial position), and you aim to improve your position in the market, then you may consider the following approach:

  • Balance of short-term and long-term initiatives (i.e., between 6 and 12 months).

  • Moderate investments (i.e., no big bets).

  • 'Fix the basic' and 'Improve from a stable foundation' initiatives (e.g., effective management process, entering the strategic channel, etc.).


1.3 The 5D Method of Profit Amplification Program

A successful profit amplification program typically has five steps (which I call the 5D method):

  • Step 1: Design – Organize resources to deliver PAP.

    1. Project planning.

    2. Project resourcing.


  • Step 2: Diagnostic – Conduct rapid assessments to understand the problems.

    1. Define the problems.

    2. Understand the root causes.

    3. Assess the full potential.


  • Step 3: Develop – Determine the required solutions.

    1. Set the targets and priorities.

    2. Create the implementation roadmap of key initiatives.

    3. Set governance and tracking in place, e.g.,

      • Formal Program Champion.

      • Program Management Office

      • Roles and meeting cadence.

      • Reporting and issue resolution.

      • Project portfolio management and gated process.


  • Step 4: Deliver the Quick Wins – Win the initial momentum of change (the first 3-6 months).

    1. Launch immediate actions, including symbolic gestures.

    2. Deliver various proofs of success.

    3. Celebrate successes.

    4. Convince others to support the program.


  • Step 5: Deliver Lasting Change – Implement changes to the structural model and secure long-term bottom-line performance.

    1. Launch and deliver medium-term initiatives.

    2. Enhance long-term competitive advantage.

    3. Build the organizational capacity to sustain performance.


1.4 The Key Success Factors

The key difference between successful programs and failed ones is in the attention to the intangible elements of change, e.g.,

  • Alignment of the leaders,

  • Circulating story,

  • People's understanding,

  • Incentives to deliver,

  • Skills and capabilities to deliver,

  • Emotional engagement,

  • Multi-way dialogue, or

  • internal politics.

In other words, you cannot amplify your profit if you ignore the intangible aspects. Pay attention to them if you want to smoothly amplify your profit.


Fortunately, systematic approaches and standardized systems outlined in this manual can help you address these intangible aspects.


 

2. Thirty-three Ideas to Amplify Profit Significantly and Quickly

The following How Tree provides comprehensive options to increase profit.


Question: How do you amplify your profit?


Answer: There are 10 ways (and 33 options) you can do.

1) Increase Your Net Sales Value.

1. Increase Your List Price (i.e., optimize your Product Pricing).

2. Reduce Your Discounts (i.e., optimize your Customer Pricing).

3. Minimize Price Leakages (i.e., optimize your Rebates And Surcharges).

4. Improve Your Product Mix Margin.

5. Boost Your Sales Quickly.

6. Improve the Effectiveness of Your Sales Teams.

7. Improve Return from Your Marketing Investment.


2) Reduce Your Procurement Costs.

8. Reduce Your Indirect Purchasing Costs.

9. Reduce Your Direct Purchasing Costs.


3) Reduce Your Operation Costs.

10. Improve Your Manufacturing Efficiency.

11. Improve Your Service Operation Efficiency.

12. Digitalize Your Operation to Reduce Costs and Improve Efficiency.

13. Optimize Your Supply Chain and Improve Your Sales & Operation Planning.


4) Improve Return From Your R&D Investments.

14. Rationalize Your R&D Projects.

15. Speed up Your R&D Process using Lean Engineering.


5) Improve Your Management Effectiveness

16. Strengthen Your Management Team.

17. Reinforce the Performance Management System, including the Incentives.

18. Upgrade Your Frontline Leadership.


6) Reduce Your Organization Overheads.

19. Quickly Delayer Your Organization.

20. Slim Down Your Support Functions.

21. Reduce Your Cost per FTE.

22. Reduce Headcount.


7) Use Technology To Cut Costs And Improve Services.

23. Simplify Your IT System.

24. Reprioritize Your Digital/Technology Projects.


8) Strengthen Your Growth Strategy.

25. Innovate Your Business Model for Long-Term Profit Creation.

26. Identify New Growth Levers.


9) Improve Your Corporate Strategy To Maximize Return.

27. Manage Your Cash Effectively.

28. Improve Your Corporate Synergies.

29. Control Capital Allocation and Manage Financial Policy.

30. Prepare Equity Story and Investor Roadshow.


10) Increase Return from Your Working Capital.

31. Improve Your Account Payables.

32. Improve Your Account Receivables.

33. Optimize Your Inventory.


We will go through these ways one by one in this section.


 

3. How to implement a Profit Amplification Program


In this section, we will discuss the step-by-step actions needed for you to execute the Profit Amplification Program.


To save you time, we will make it short and punchy to the point.


As a reminder, the profit amplification program typically has five steps:

Let's go through each step one by one.


 


Step 1: Design [1-2 weeks]

Before you start, you need to do three things. First, prepare your project plan. Second, prepare your project team members. Third, redeploy resources to PAP.


1.1 Designing the Project Plan

A project plan is a must-have. Preparing one and keeping it updated daily helps you to:

  • See the big picture (where the PAP is heading).

  • Monitor and manage the progress of all workstreams.

  • Communicate the progress to people.

  • Be in control.


Once you read this post, you should know how to prepare a project plan in detail, step-by-step. For the sake of summary and simplicity, here is the typical timing of a PAP:

  • Step 1: Design [1-2 weeks]

    • Develop hypotheses of profit amplification initiatives.

    • Conduct management interviews.

    • Set up key milestones.

    • Define the scope of PAP.

  • Step 2: Diagnostic [2-8 weeks]

    • Align on the overall goals.

    • Identify the improvement initiatives.

    • Identify quick wins.

  • Step 3: Develop [2-8 weeks]

    • Develop high-level plans.

    • Set up milestones and Key Performance Indicators for each initiative.

    • Establish governance and tracking measures.

  • Step 4: Deliver Quick Wins [3-6 months]

    • Generate quick impacts and fund the journey.

    • Develop detailed plans for core improvement initiatives.

  • Step 5: Deliver Lasting Change [6-12 months]

    • Fine-tune the levers based on execution feedback.

    • Apply rigorous project management to ensure execution.

  • Overall Program Duration: 10-24 months


How fast you can execute these steps depends on three main factors:

  • How many team members do you have: if you have more people, you can execute more workstreams simultaneously).

  • The capability of your team members: if you have experienced and skillful people, they know what to do, what to be aware of, and can move faster.

  • The complexity of the business: if you are handling a complex or complicated issue, the progress will be slower – for example, if your team is trying to kill several non-profitable SKUs, but the big customer is unhappy and threatens to pull out, then you will have a longer negotiation time. Another example, you want to automatize financial reporting, but the data quality is poor. Or sometimes you just have saboteurs and political blockers in the company.


1.2 Designing the Project Team Members

You need manpower to deliver PAP. So, make sure you get the best people to staff the PAP team. Make sure they have the authority, time, and resources needed.


I suggest the following structure:

  • Steering Committee: 2-5 C-suite leaders in the company. Their roles are to:

    • Review/approve recommendations.

    • Set expectations for team output.

    • Provide overall guidance for the team.

  • Program Champion/Sponsor: 1 C-suite leader of the company who is accountable for the success of the PAP. This person needs to spend at least 20-40% of his/her time in PAP. His/her roles are to:

    • Be accountable.

    • Get political support for PAP from other senior leaders.

    • Unblock any blockers that need C-suite's actions.

  • Program Director: 1 senior leader to manage all the PAP projects. This person needs to spend 100% of their time in PAP. His/her roles are to:

    • Ensure successful delivery of all PAP project works and key deliverables.

    • Manage workstream leaders and program analysts day-to-day.

    • The single point of contact for everything related to PAP.

  • Workstream Leader / Project Leader / Project Manager: For each workstream, make sure you have one workstream leader – they are ideally from the business line (e.g., Head of Procurement to lead workstream related to Indirect Purchasing). They need to spend at least 40-60% of their time in PAP. Their roles are to:

    • Ensure the successful delivery of his/her workstream's work and key deliverables.

    • Manage the workstream team’s day-to-day work.

  • Workstream Team Members: 2-5 people for each workstream, depending on the complexity of the workstream, to support the Workstream Leaders. They need to spend at least 60% of their time in PAP. Their roles are to:

    • Do the work and deliver results.

    • Report any issues/problems.

  • Program Analysts: 2-5 people under the Program Director to provide support across the entire workstream. They need to spend 100% of their time in PAP. Their roles are to:

    • Gather facts/data and conduct analyses.

    • Interview internal and external subject matter experts.

    • Prepare and moderate workshops.

    • Consolidate results and findings.

    • Provide project management support to the Workstream Leaders/Team Members so that results are delivered on schedule and on budget.

  • Expert Team: An optional group of people that needs to be consulted on an ad-hoc basis. Typically they are external advisors. For example, for an asset disposal workstream, you may want to consult an M&A advisor, accounting advisor, legal advisor, strategy advisor, etc. Their role is to provide:

    • Expert perspective.

    • In-depth knowledge.


1.3 Redeploy Resources to PAP

There is one no-regret and essential action that you need to take before even starting the diagnostic process, i.e., halt any projects/initiatives without clear immediate and significant impact:

  • You want to reserve financial resources and manpower for PAP.

  • Many of these initiatives will be replaced by PAP initiatives. Remember: a lot of projects with small impacts are an inefficient use of resources. You want to focus on a few big projects with big impact.

  • Hold all discretionary investments and Capital Expenditure spending. Wait for the PAP diagnostic result.


Click here to return to the overview of the 5 steps.


 


Step 2: Diagnostic [2-8 weeks]

In this phase, you will conduct rapid assessments to understand the problems. Rapid because you need to operate with the 80/20 principle. You don't want to do a detailed study, which will take months to complete. You want something that can quickly tell you what to do and deliver results within 12 months (i.e., one financial year).


There are five things you need to do in this step. First, review all aspects of the business. Second, review existing initiatives/projects. Third, review the business risks. Fourth, determine the target financial impact of PAP. Fifth, capture the baseline for impact tracking.



2.1 Review All Aspects of the Business

You need to understand the drivers of the company's performance.


The objectives:

  • Understand the business's ability to generate profit today and in the future.

  • Identify the key problems and map the key opportunities.

  • Set the strategic agenda and prepare for rollout.

Steps to execute:

Start by reviewing the performance of all areas of the business (e.g., procurement, manufacturing, supply chain, marketing, sales, after-sales, HR, finance, IT, R&D, etc.).

  1. Determine if the existing business model can win/survive in the market (strengths and weaknesses).

  2. Scan the market for external opportunities and threats.

  3. Define the new business model with the right-to-win.

  4. Define the initiatives, quantify the impacts, determine the timelines, decide the owners, and add to the master list of PAP initiatives.


Then, review every single line in your Profit & Loss report in detail.

  1. Map all problems.

  2. Identify all opportunities.

  3. Define the initiatives, quantify the impacts, determine the timelines, decide the owners, and add to the master list of PAP initiatives.


Finally, assess your strategy in-depth and check if the strategy can indeed generate a competitive advantage.

  1. Analyze historical/current performance and its main drivers.

  2. Assess current competitiveness against key market players:

    1. Offering;

    2. Target customers; and

    3. Differentiation.

  3. Assess market outlook and future customer needs.

  4. Review the current management’s plan.

  5. Define the initiatives, quantify the impacts, determine the timelines, decide the owners, and add to the master list of PAP initiatives.


Tip: use internal workshops to get alignment on the business model weaknesses, identify opportunities and set the priority, and agree on targets and timelines.


2.2 Review Existing Initiatives/Projects

You need to map all initiatives/projects in the company so that you can decide which ones to be kept and which ones are to be eliminated. It is essential because, with limited resources, your company cannot deliver everything. It needs to focus on the most important projects only.


The objectives:

  • Compile a full picture of ongoing and planned projects.

  • Assess projects.

  • Refocus the project portfolio by stopping the bad ones and boosting the good ones.


Steps to execute:

First, review the current list of all projects.

  1. Create an inventory of initiatives by division/function.

  2. Assess each project/initiative against these factors:

    1. Progress (e.g., just started, almost complete, 25% done, 50% done, 75% done);

    2. Robustness (e.g., solid and well-defined project; weak and vague project; unrealistic project);

    3. Likelihood of success (e.g., below 20%, between 20-40%, between 40-60%, between 60-80%; above 80%);

    4. Size of impact (in $M); and

    5. Timing (when it will be completed/deliver impact).


Then, you can restructure the project portfolio.

  1. Prioritize projects based on:

    1. Progress;

    2. Impact; and

    3. Timing.

  2. Execute changes:

    1. Eliminate canceled projects and redeploy resources to the prioritized projects.

    2. Update project targets, and ensure clarity and alignment.

  3. Define the initiatives, quantify the impacts, determine the timelines, decide the owners, and add to the master list of PAP initiatives.


2.3 Review the Business Risks

In business, there are many uncertainties. To ensure you can respond well to any changes in the market, you will need to be prepared for them. Therefore, it is very useful to map the business risks, so that you won’t be caught off-guard and blindsided.


The objectives:

  1. Create a risk inventory with an estimated impact and the probability of occurring (e.g., probability of 25%, 50%, 75%).

  2. Determine mitigating actions for each high-impact risk.


Steps to execute:

First, create an inventory of risks.

  1. Interview the management and external experts to identify key risks to the business.

  2. Analyze risk scenarios: Customer, supplier, personnel, operational, financial, and other risks.

  3. Quantify risks: Probability of occurring and its impact on the EBITDA and Cash Flow.


Then, prioritize risks based on impact and probability.

  1. Review the risk inventory in a workshop, categorize, and prioritize risks.

  2. Identify process improvement needs for ongoing risk identification and mitigation.

  3. Decide a shortlist of critical risks for mitigation.


Finally, decide on risk mitigation.

  1. Define the initiatives, quantify the impacts, determine the timelines, decide the owners, and add to the master list of PAP initiatives.


Tip: use internal workshops to get alignment on risks, prioritize risks, and decide on mitigating actions.


2.4 Determine the Target Financial Impact of PAP Initiatives

Before you can set any meaningful target, you need to understand what is possible for your company. This way, you will not end up with unambitious or unrealistic targets.


The objectives:

  • Define the target financial impact of PAP based on:

    1. The master list of PAP initiatives (bottom-up approach); and

    2. External benchmarks/management expectations (top-down approach).

  • Identify and prioritize key initiatives that would deliver the biggest impact (i.e., high-impact and easy-to-achieve). Remember: 80/20 principles - focus on key projects only.


Steps to execute:

First, build an Integrated Financial Model (i.e., an Excel spreadsheet for modeling the financial impact and simulating scenarios) to capture the bottom-up list of PAP initiatives.

  1. Gather and consolidate the performance metrics into an Integrated Financial Model (e.g., P&L, Balance Sheet, Cash Flow, Operational Key Performance Indicators, and Commercial Key Performance Indicators).

  2. Link the master list of PAP initiatives and their quantified impacts into the Integrated Financial Model. Notice that in the previous steps, we keep updating the master list of PAP initiatives. Now, we need to establish links from individual initiatives into the Integrated Financial Model.

  3. Assess the EBITDA and Cash Flow impact of the bottom-up initiatives.


Then, determine the top-down target from external benchmarks and management expectations.

  1. Benchmark financial metrics (e.g., NSV level, Year-on-year growth rate, Operating margin, EBITDA margin, EBITDA growth rate, and Return on Capital Employed).

  2. Analyze investor expectations.

  3. Conduct management interviews.

  4. Gather experts’ views.


After that, set the adjusted targets for PAP (marrying the bottom-up and top-down approach).

  1. Conduct workshops to align on targets for each key PAP initiative.

    1. Commercial initiatives.

    2. Operational initiatives.

    3. Financial initiatives.

    4. M&A initiatives.

  2. Based on the bottom-up initiatives and the top-down benchmarks/aspirations, define the formal PAP targets (e.g., NSV growth, EBITDA growth, EBITDA margin, cash flow, total shareholder return, share price, and market capitalization).


Tips:

  1. Make sure the EBITDA bridge from current EBITDA to target EBITDA is supported by robust and prudent initiatives;

  2. Some targets are for Quick Wins; Other targets are for Long-term;

  3. Make sure the Senior Management Team is aligned via Workshops;

  4. Having a single integrated financial model which links all the initiatives into the P&L, Balance Sheet, and Cash Flow of the company is very useful – for planning, communicating, debating, and monitoring.


2.5 Capture the Baseline for Impact Tracking

To track the impact of PAP, besides the targets, you also need to establish the baseline. This is especially important for the turnaround type of PAP, where rapid headcount reduction and financial cost-cutting are often needed.

The objectives:

  • Establish the Financial and Headcount baseline (overall and by workstream).

  • Manage target setting and validation.


Steps to execute:

First, collect data and internal documents. The definition of existing is to be agreed upon with the Executive team (e.g., last month, last quarter, last year, last 3 years).

  1. The existing financials.

  2. The existing headcount.

  3. The existing metrics.


Then, based on the data, establish explicit baselines.

  1. Financial baseline: overall and by workstream.

  2. Headcount baseline: overall and by workstream.

  3. Other baselines: overall and by workstream.


Click here to return to the overview of the 5 steps.


 


Step 3: Develop [2-8 weeks]

Once the diagnostic is completed, you can start developing your action plans to realize the initiatives.


The diagnostic phase helps you identify and plan the individual initiatives needed (or see Step 4 & 5 to give you more inspiration).


However, beyond the individual initiatives, you still need to plan for the entire program (i.e., to ensure the overall program's success). Here are the four things that you need to plan.


3.1 Put in place the PAP Management Office, Governance, and Structure

PAP Management Office is a temporary but formal structure in your organization, which is empowered to oversee, coordinate, and drive the initiatives. Think of it as your war command center.


The objectives:

  • Set up the overall governance for PAP.

  • Set up the PAP processes.

  • Establish a formal structure to manage all the PAP initiatives/projects.

  • Oversee and coordinate all initiatives/projects.


Steps to execute:

First, set up the PAP governance.

  1. Appoint the PAP Management Office positions (e.g., Program Champion/Sponsor, Program Director, Workstream Leaders, Workstream Members, etc. Refer to Section 1.2 for further detail).

  2. Define the PAP governance structure (i.e., the roles and responsibilities of the SteerCo, PAP Management Office, Workstream teams, Functional Departments, etc.)

  3. Determine the meeting cadence (e.g., monthly steer-co, weekly workstream meeting, daily stand-up meeting), information flow (e.g., what reports are needed for who), and reporting cycle (e.g., weekly report, monthly report, sent to whom by when).

  4. Determined issue resolution procedure (i.e., what to do when issues arise) and escalation path (i.e., who can decide what).

  5. Schedule the key meetings (e.g., the kick-off meeting, steer-co meetings, working team meetings).


Don't forget to ensure project management best practices are implemented:

  1. Ensure representatives from all relevant Functions (e.g., Finance, HR, Commercial, etc.) are integrated into the PAP Management Office.

  2. Develop project charters for both PAP Management Office (the overall program) and workstream teams (the individual projects). Make sure the project charters outline the roles & responsibilities, scope, parameters for success, interdependencies, and decision rights.

  3. Define and align on a tracking mechanism, issue log, and any project management tools to be deployed (including the process of how to handle interdependencies between projects).

  4. Introduce PAP to the entire organization. Make sure PAP communicates to the entire organization regularly (e.g., PAP updates during monthly townhall meetings).

  5. Make sure the Master List of PAP Initiatives and the integrated financial model are updated live. This will make it easy to track the entire progress and identify issues immediately.


3.2 Derisk the PAP

To minimize the risk of failure, you will need to check the rigor and robustness of your PAP. Take actions to reduce the risk of failure, e.g., shorten the duration of the project, increase the commitment of the team, added relevant representatives from missing functions.


The objectives:

  • Ensure rigor in the program.

  • Derisk the program.


Steps to execute:

First, you must ensure the workstreams are properly staffed, and the teams know what to do.

  1. Teams and sub-teams are built (i.e., each workstream has the needed manpower to deliver). It is better to reduce the number of workstreams, rather than have many weak teams.

  2. Define a project charter for each workstream.

  3. Workstreams members are trained in roles and deliverables. They need to know what is expected from them and that they can deliver it.


Then, you must build rigor to the execution plans (i.e., ensure the workstream plans are sufficiently detailed).

  1. Map all actions needed by decomposing workstreams into detailed milestones and step-by-step actions. We call these the implementation roadmaps.

  2. Then, for each action, assign a clear owner, timeline, and target.

  3. Each action is to be tracked and reviewed regularly.

After that, you can evaluate the quality of the execution plans

  1. Pressure test and derisk all implementation roadmaps (Rigor test and risk assessment, e.g., assess the Duration of the project, Integrity of the team, Commitment to change, and the Effort of stakeholders).

  2. Cut all initiatives that don't pass the pressure test.


Finally, you should review the progress regularly to ensure an optimized portfolio of initiatives.

  1. Regularly review the progress and the impact.

  2. Regularly review the list of initiatives.

  3. Regularly review the risks.


3.3 Set up the Tracking and Reporting

Before you enter the delivery phase, make sure the tracking and reporting mechanism is already up and running.


The objectives:

  • Define metrics to track.

  • Develop reporting dashboards.

  • Set up the reporting process.


Steps to execute:

First, define the tracking process and metrics.

  1. Determine metrics to track and data sources.

  2. Determine tracking process, roles, and methodology for benefit calculation, and validation procedure (including the role of Finance).

  3. Brief the initiative owners and other users.


Then, you can set up the monitoring tool and reporting cadence.

  1. Set up the monitoring tool/reporting dashboards. Determine the approval process for changing the dashboards.

  2. Establish weekly, monthly, and quarterly reporting and issue resolution cadences, in line with the program governance.

  3. Upload all the initiative implementation roadmaps.

  4. Set up a War room for visual reporting of the progress.


Once done, you can start tracking and reporting.


3.4 Plan the Communication and Engagement

With the right communication, you can rally the entire organization to support the PAP.


The objectives:

  • Establish relationships with key stakeholders.

  • Ensure support from the key stakeholders.

  • Inform/inspire/engage the organization.


Steps to execute:

First, you need to identify key stakeholders and set the communications targets.

  1. Complete stakeholder analysis, i.e., identify the level of support/resistance from all key shareholder groups (internal and external; e.g., employees, shareholders, Board of Directors, customers, suppliers, trade unions).

  2. Initiate the first pulse-check survey.

  3. Based on that analysis, set the communications targets and prepare a detailed communications plan (i.e., what messages to whom via what channel and when).

  4. Set up clear governance on communication and messaging, i.e., who can approve what messages.

  5. Launch the PAP communications team.


Then, you can manage the stakeholder groups.

  1. Set up a two-way Communication channel (e.g., special email address, line leaders, workstream leaders, change champions, etc.).


  2. Repeat the pulse-check surveys at regular intervals, and adjust accordingly.

  3. Execute the Communication plan.


Finally, you can support the Communication with other initiatives designed to change behavior, e.g.,

  1. Hard changes: adapt the performance management, adjust the training program, introduce special bonuses, special recognition, non-financial incentives, etc.

  2. Soft changes: host regular working sessions with leaders/change champions to ensure commitment and remind them to role model new behaviors.


Click here to return to the overview of the 5 steps.


 


Step 4 & 5: Deliver Quick Wins [3-6 months] and Lasting Change [6-12 months]

Once you have developed the detailed initiatives, you are ready for delivery. As mentioned above, there are 33 ways you can pursue. If you are interested in more details, the following posts could help you.


Click here to return to the overview of the 5 steps.



 

Hope this manual is useful for you. Good luck with your transformation/turnaround. May your profit amplify.


 

If you would like my help designing & driving your profit amplification program, please feel free to contact me here. I offer the following service:

  • Package = Transform/Turnaround My Company with PAP, please

  • Fee = $5k/day

  • Estimated timing = 125 - 250 working days

  • How it works =

    • Let's discuss your need. Then, if I can help, we can sign the contract and NDA.

    • Then, I will work closely with you and your team to design and deliver your PAP. With my relentless drive and your support, the PAP plan will be delivered.

    • Weekly review sessions with you to ensure everything is progressed as planned and roadblocks are addressed.

    • What is needed from your side: 100% commitment to the PAP.



 






0 comments

Comments


bottom of page