Organic Growth Strategy
May 9, 2019

Almost every company has a strategy element based on organic growth; that is growing the business through increased productivity, new asset creation for capacity increase, customer base expansion, or introducing new products, versus M&A activity. The challenge for companies is the implementation of cost improvement programs and a culture of continuous improvement to rapidly generate additional free cash flow from operations to fund (at least partially) organic growth programs.

A fundamental core value for Audere focuses on client results, which implies that we apply our efforts in coloration with the client with a constant commitment toward the program target(s). In previous programs we helped clients achieve 2% to 17% increased throughput with no capital outlays while reducing the overall cost base 1% to 7%. (Figures are based on case studies and program documentation).

These throughput increases allow companies to grow the top line by gaining market share or, in some cases, finally fulfill current customer demand, while lowering operating costs and not increasing fixed costs. The sources of funds generated through these collaborative programs are applied to build step-change growth.

The tools & methodologies Audere implements enable the organizational transformation for our clients, and they provided the foundation to drive a behavioral shift at every layer of the organization to focus on safety, reliability, and consistency of operations. Given this cultural shift, we are confident that clients will continuously break production records in years to come!

  • 1

    Lean Techniques and Tools : Our toolbox for implementation includes Lean tools like 5S, 6 Sigma, et al. These are standard tools, but how we put everything together into a unique program for each client is what drives breakthrough performance.

  • 2

    Short interval controls: Our philosophy is that an operation should be managed by quick interval controls at each layer of the organization to achieve overall safety, production, quality and cost objectives.

  • 3

    Management Operating System (MOS): Time is the most valuable asset for employees, and it should be optimized to quicken decision making speed. To maximize time and the quality of decisions made by the organization, we develop a consistent Management Operating System (MOS) to drive discipline and structure in the form of standard KPIs, Daily, Weekly, Monthly Operating Reports, meetings, and roles & responsibilities.

  • 4

    Maintenance Excellence: Our implementation focuses strongly on installing a standard maintenance workflow and measurement system, which included improved planning & scheduling, and the active engagement of the front-line Maintenance Supervisor and Production counterparts.

  • 5

    Practical front-line leader training: Our training model basis is on short, practical training exercises followed by significant on-the-job training and coaching to ensure that front-line leaders adapt to and incorporate the learnings.

  • 6

    Prioritization of projects:Our consulting experience demonstrates that project execution speed increases by limiting the number of projects-in-progress. In such a complex operation there are always competing projects that can be implemented to improve results; however, the key is in picking not only the right projects but also the correct number of projects to avoid overwhelming the organization.