Crane Aerospace
CLIENT: | CRANE AEROSPACE |  |
INDUSTRY: | AEROSPACE | |
COMPETENCIES: | Reorganization/Restructuring |
CHALLENGE
To properly align metrics and strategic goals within Crane Aerospace, a $2B aerospace systems manufacturer to enable greater internal performance, market share growth and industry leadership.
The largest of the Aerospace firms supplying to the airframe manufacturers were consolidating. These so called “Tier 1’s” were acquiring / partnering in unprecedented ways which was rapidly changing the competitive landscape in the industry. The question facing AlliedSignal Aerospace (a Tier 2, i.e., supplier to the Tier 1’s as well as to the airframe manufacturers) was how to interactive effectively and maintain their strategic position with the newly integrated Tier 1’s while still being able to deal directly (and more profitably) with the airframe manufacturers. The leadership team at AlliedSignal Aerospace, supported by a ten-analyst Strategy Department, had developed a strategy for making alliances with certain Tier 1 and competitor Tier 2 companies, acquiring two Tier 2 companies and also acquiring as many Tier 3 companies as possible.
PROCESS
The revised Executive Consulting-directed strategy required a major shift in focus from engineering to customer satisfaction and competitive positioning. As a consequence, the Transformation Team developed a radically different, more functional organizational structure, with a 10% net reduction in resources. These savings, achieved through a proprietary re-staffing process, were successfully redeployed to improve organizational capability though infusion of external talent at no overall increase to existing overhead. Executive Consulting utilized their proven People Harmonization process to tighten organizational infrastructure and direct focus on future priorities, which included:
Conducted intensive intra-divisional strategic reviews, developing hypotheses to test all business assumptions using high-level game theory and various tactical techniques. Worked initially with executive team and subsequently their high-potential managers to draft a preliminary organizational strategy then develop the underlying structure to support implementation. Remotely administered a zero-based staffing process for all new management positions required. Initiated a more productive leadership communication process to refocus and implement all transformational changes. Coached President through all aspects of transformation evolving into downstream coaching of the strategy leadership team.
RESULTS
Close review of the Company’s intended Strategy revealed significant shortcomings, which through analytical testing and organizational assessment was demonstrated as likely to fail. Executive Consulting facilitated multi-divisional engagement to rework the business strategy and operational plans, while reducing overhead and infusing external talent to strengthen organizational capability. Corporate executives supported the improved visibility and ability to measure success from the new Strategy and implemented the recommendations; which proved on-target in meeting corporate objectives the subsequent year. According to a divisional President of Crane Aerospace over 85% of Executive Consulting's [transformation] procedures implemented in 2004 are still in effect. Executive Consulting helped the Company institutionalize the changes and prepare them for their next strategic objective – growth through acquisition. Employee and Customer survey responses to the transformation were remarkably positive.