A Growth Consulting Case Study:
3-Horizon Growth Planning Process^sm

Challenge

A mid-size company in southern Illinois found itself dramatically underperforming in profitability despite their growth. As a result, cash flow was poor and pressure from investors was mounting rapidly.

A division of a major conglomerate with annual sales of $85 million dollars had been losing money at an annual rate of $6 million.

Process

We implemented the Strategex 3-Horizon Growth Planning Process^sm, in which we provided focus, direction, and discipline to manage aggressive, sustainable and profitable growth in three horizons (short, mid and long-term growth). We equipped the management team with tools to manage the three horizons concurrently rather than sequentially.

The process incorporated all aspects of the company’s key growth components, including strategy, obstacles to growth, organizational structure, and investment requirements, then identified and prioritized specific initiatives for growth. The process began with a two-and-a-half day initial planning session. Over time, we conducted periodic meetings to monitor progress, revise initiatives based on changing business realities, and keep pushing the horizons forward.

Results

The company achieved increased sales to $160 million in two and a half years. This plan focused strictly on organic growth, without acquisitions. As a result, the company earned a profit of $7.5 million, representing a $13.5 million turnaround in profitability. The 3-Horizon Growth Planning Process^sm identified and overcame obstacles to growth, restructured its management team, and focused its sales efforts to deliver the growth objective.

Strategex facilitated the process, supported the effort by developing a channel strategy, and also conducted global Voice of the Customer research.