Value creation, previewed in a plan
The Challenge
Grinding Solutions wanted to invest in strategic planning support as they had a vision for the growth of their business but lacked the specialist skills to understand the right direction to take and what basis for planning they should use.
In particular they wanted to discover the relative value of investing in skills and infrastructure, marketing and new product development.
The Approach
The collaborative experience having BAR as part of the team delivered a credible and creative growth plan, seeing a 5-fold increase in projected profits over 5 years. This provides greater confidence in the achievability and affordability of the plan.
The combined outputs offered the ability to schedule resources to meet the business objectives and meaningfully develop financial budgets to support initial growth along with a financial strategy for the long term development of business value. This showed a potential exit value 20 times larger than current value.
The Value
Engaging in a staged and measured approach helped Grinding Solutions take a quantified view of the value they were looking to create and a set of activities to use as the basis of their management plan.
However, whilst the BAR Strategic Value Matrix (SVM) module had produced a valued roadmap and set of objectives for growth, the management team required guidance on the prioritisation of activities and how this mapped to an effective return on investment.
The second phase of activity mapped the priorities to a delivery plan that helped:
- Build a model of how the business would operate to support an investigation of various investment strategies;
- Use the SVM business objectives to help decide what to invest and when to assess impact on cash-flow and profit;
- Select the optimal investment strategy aligned to business development objectives.