Outcomes
Within twelve months, the division rose from the worst performing business in the group to its best. Operating margins tripled from 3.5% to an exit run rate of 10.8%. Accrued benefits reached $12 million and were climbing at $1.6 million per month, 45% above the original programme target. Working capital was reduced by $25 million. The transformation involved over 1,000 staff across all functions and 14 countries. The engagement was recognised as Best International Project by the UK Management Consultancies Association, and Curzon entered a risk-reward commercial arrangement tied directly to the benefits delivered.
The Divisional CEO said: “We wanted a step change in performance, done in a way that would build capability to make it sustainable. The results speak for themselves.”
Background
Underperformance was structural and deep-rooted. Production inefficiencies, inadequate cost management, and the absence of a coherent pricing strategy were compounding each other across a geographically dispersed operation. Previous turnaround attempts had failed. Leadership capability was uneven, and doubts existed over parts of the divisional management team. The challenge was not simply to cut costs, but to set the business up for sustainable, profitable growth in an environment where change had repeatedly stalled and where local management had yet to accept ownership of the problem.
Curzon Approach
Curzon recognised from the outset that a transformation spanning 14 countries and 1,000 people could not be parachuted in from the outside. Local credibility and cultural fit were non-negotiable prerequisites for gaining the management ownership that previous attempts had failed to achieve. Curzon partnered with a local consulting partner to bring the right on-the-ground knowledge and relationships, while providing the programme architecture and delivery rigour that the engagement demanded.
Exceptional emphasis was placed on set-up. Targets and workstreams were not only clearly defined but actively accepted and shared by local management before implementation began. This front-loaded alignment work was critical: without it, the programme would have faced the same resistance that had defeated earlier efforts.
An 11-month implementation plan was then executed across four priority markets, managing a series of workstreams covering sales effectiveness, manufacturing efficiency, supply chain optimisation, and commercial management. Margin leakage was addressed through pricing optimisation, product mix management, and tighter discount controls. Operational excellence disciplines were introduced across manufacturing facilities. Inventory was rationalised and the corporate overhead layer reduced through better leverage of the regional shared service centre.
Running in parallel with these operational interventions was a sustained programme of capability development across management and teams at every level, ensuring the new performance levels would be owned and sustained by the business itself. An in-year ROI of over 3:1 validated both the commercial structure of the engagement and the pace at which benefits were realised.
