SME FOCUS

Business Strategy

Success in business comes through proper planning and strategizing towards achievement of goals. Many a times, the start will be good but as the time progresses, the priorities change and the direction might be totally different from what it is supposed to be. The main reason is lack of structured approach to business planning and strategy and a proper way of working within a framework to make it successful.

Business Strategy should flow from the Vision and Mission of the organization, which emanates from the Big Purpose of why engage in this business. There needs to be an alignment with the SWOT analysis of the entrepreneur and the business goals/strategy.

Given today’s competitive environment, those who have a structured approach to business have reasonable probability of sustained success.

Kenspire Advisors provides complete solutions in Business Strategy development and implementation for SME entrepreneurs and organizations.

The team is headed by S. Krishnan, Director, who has about two decades of experience in advising SME entrepreneurs and emerging corporates in business strategy and implementation.

Case study

A family managed, second generation business house, engaged in Jewellery retail business with a very large business size with multiple branches across the State required to be transformed to a process oriented company.

The first and foremost activity was to freeze the Objectives and goals of the organization and to arrive at an appropriate business strategy which will align with the goals. The methods used were SWOT, Core Competency analysis, Vision/Mission and then Business Strategy.

The organization was managed with traditional approach with push strategies in sales and with no clear focus on Marketing & Sales activities, with lack of dedicated team to monitor. After understanding the reality, it was suggested to have a Corporate Sales Team at the HO which will be responsible to achieve the Sales targets through the various Branches and Points of Sales.

The organization was classified into 5 departments and about 50 business processes. The organization structure was created and roles and responsibility of each position was defined. A three layered organization structure was suggested with a Pyramid Structure at all levels.

The result was phenomenal and the corporate sales team was set with a clear day to day process aimed at both enabling and monitoring activities. This resulted in clarity on roles as well as enhanced focus on sales activity and finally resulting in higher rate of growth with same infrastructure.

Each of the other departments started working with clear focus on their functional structure and goals and also how to interact with each other department to achieve the common goals.

Costing solutions

Case study

A Rs.50 Crore Auto-component manufacturing company in existence for about 25 years with about 1200 product variants, did not have its costing systems in place. Though the sales was going up over the years, the profit ratio was going down. The management could not take a decision on saying no to any customer or any product due to lack of proper costing data at the product level.

After analyzing the process, an appropriate costing system was developed, with cost mappings from the origin of the cost drivers. The result was to achieve a product level contribution report and this was achieved with good amount of effort and time.

Once this report was in place, the management could understand that the real problem was not with the pricing but with certain uncontrolled overheads. The management focus was diverted to the proper areas and the results achieved.

The accepted formula for business profit is Profit = Selling price – Cost, the only controllable factor being Cost, as lot of times, selling price is driven by market forces.

Proper focus on establishing a good costing system and regular review of costing reports will go a long way in ensuring that the bottom line also grows in pace with the top line. Many a times, entrepreneurs face a situation when the Sales is growing at a good pace but the Profits are dwindling. This is mainly due to lack of focus on Cost of Production and Cost of Sales.

Kenspire Advisors provides 360 degree solutions to costing, right from analysis of cost drivers, building up costing systems, implementation of the system, developing costing MIS on a regular basis.

The team is headed by S. Subhashini, Director who is an experienced practicing Cost and Management Accountant.


ERP Strategy

With growing dynamics and complexities of businesses in the manufacturing sector, it becomes imminent to have a robust Information Management System through an efficient ERP solution. For those who do not understand technology, it can be a nightmare. Many organizations get stuck with wrong solutions, wrong service providers, wrong approach to ERP and end up with frustrations.

ERP is 80% Functionality and 20% Technology. Translating the business process and needs to a good information system using technology platform is what is required.

A structured approach to ERP Design &Implementation is required for getting successful in the mission. A proper SDLC (Software Development Life Cycle) approach will deliver proper results rather than a general approach to ERP.

Kenspire Advisors provides wholesome advisory in ERP right from Approach, Strategy, Solution and Implementation.

Case study

A Rs.50 Crore food manufacturing and retail company run by a single promoter was facing a tough situation in managing all functions of the organization when the growth has been good. There was no reliable data flow in the organization and the decision making was more on experience and gut feeling. This had resulted in the company not able to have clarity on numbers and not able to exploit the growth potential of the business. Management review was not happening properly due to lack of reliable data.

The company had invested some money on implementing certain home grown ERP but things were not moving as the vendor was not appropriate for the situation. Given the future potential and strategies of the business, a proper strategy was formed for ERP solution and it was decided to go for SAP B1 as an appropriate solution for the company and we identified a vendor for implementing the same. Kenspire acted as an interface between the company and the ERP vendor and within a short period of 4 months, the implementation of the first phase of SAP B1 was completed and all functions of the organization were covered under the ERP.

The significant aspect of this is the interface between the client and the vendor for successful implementation of the software.

Business Process Management

Case study

A family managed, second generation business house, engaged in Jewellery retail business with a very large business size with multiple branches across the State approached us for building a strong foundation for the company by adopting formal management methods.

The first and foremost activity was to freeze the Objectives and goals of the organization and to arrive at an appropriate business strategy which will align with the goals. The methods used were SWOT, Core Competency analysis, Vision/Mission and then Business Strategy.

The organization was managed with traditional approach with push strategies in sales and with no clear focus on Marketing & Sales activities, with lack of dedicated team to monitor. After understanding the reality, it was suggested to have a Corporate Sales Team at the HO which will be responsible to achieve the Sales targets through the various Branches and Points of Sales.

The organization was classified into 5 departments and about 50 business processes. After a thorough AS-IS study and GAP analysis, TO-Be process document was created for each of the processes. This was supported by Roles and responsibilities document for each process. To further percolate, individual Work Instructions were prepared for each sub-activity under various processes. All these were guided by the documented policies of the organization for the various functions.

The organization structure was created and roles and responsibility of each position was defined. A three layered organization structure was suggested with a Pyramid Structure at all levels.

Implementation of the same was taken up by way of workshops, training programs, etc and supported by a Process Compliance Review/Audit.

The result was phenomenal and the corporate sales team was set with a clear day to day process aimed at both enabling and monitoring activities. This resulted in clarity on roles as well as enhanced focus on sales activity and finally resulting in higher rate of growth with same infrastructure.

Each of the other departments started working with clear focus on their functional structure and goals and also how to interact with each other department to achieve the common goals.

Business Process Management is an initiative wherein various business processes are mapped, documented and integrated towards achieving operational Effectiveness and Efficiency and providing a robust information system to the management. BPM covers entire organization including all the activities of the business.

The key advantage of doing this is to create an organization which will be process driven and less of people oriented. The dependency on individuals will significantly reduce and will enable managements to build vibrant and reliable organizations. This helps bring in clarity to all in the organization as to what is their role and responsibility and where do they stand in the organization structure.

The approach towards this will be a detailed AS IS study, which will lead to a Gap analysis and finally TO BE documents will be created as SOP (Standard Operating Procedures). These SOPs will be for each key activity and will be further detailed in micro level as work instructions at the desk level. The key to the entire activity is the level of integration in all these processes and alignment to achieving corporate goals.

Kenspire Advisors has a good track record of ideating and establishing Business Processes for variety of organizations in Manufacturing, Service and Trading sectors.


Entrepreneur Coaching

All successful people, from a student to a sportsmen to a politician need a good Coach. A coach is an expert who will be able to provide impartial and right advises to the recipient to achieve the end results.

Entrepreneurs are of many kinds, one at heart, one who has just started and one who has started but wants to grow further. All these categories need a Coach to handhold them in their approach, strategy and implementation of the business goals and dreams.

S. Krishnan, Director, Kenspire Advisors has two decades of experience in advising entrepreneurs and has groomed many entrepreneurs in their paths of business success.

Top