Client Corner

CSSP: Why did ECCO decide to proceed with Simplified Strategic Planning?

Jeb: We had to quit being reactionary and start to formally plan for the future. In the past one person developed a sales oriented plan that was updated sporadically rather than annually. I had read about the Simplified Strategic Planning seminars (sponsored by MSU) and finally decided to attend a session in Atlanta. I left convinced that Simplified Strategic Planning had merit. Later, Larry Brown, VP, attended a session in Orlando and returned raving about the power of Simplified Strategic Planning. We contacted the Center for Simplified Strategic Planning and our relationship with Dana Baldwin began about two years ago.

CSSP: How did Simplified Strategic Planning help you focus on your marketplace more effectively?

Jeb: Simplified Strategic Planning forced us to look at our various markets. Studying present and future growth we determined we should withdraw from two markets and milk a couple of other markets. On a positive note, the information gathering pointed us to profitable growth markets. Simplified Strategic Planning helped us reposition resources to focus on the profitable areas of our industry.

CSSP: Did you have to make many structural changes in your company to gain the most effective results from your strategic planning?

Jeb: The biggest change has come in our communication. Simplified Strategic Planning puts a representative of each department in a room together at one time. Dana Baldwin (Our Center for Simplified Strategic Planning facilitator) created an atmosphere that is conducive for each person to speak his or her mind freely. Working together over the entire process, our leadership team has reached a new level. We now meet monthly to discuss the progress of our action plans. This meeting is also used to discuss the day-to-day aspects of our business. This facilitates the tying of the action plans to our business. With the action plans as our road map, we can make decisions quickly because the leadership team is on the same page. The improvement in communication has now extended into the company. This improvement was not by chance as it is one of our action plans. Another action plan is communication improvement with our customers, yet another covers our valued suppliers. We may look the same from the outside, but we communicate at an entirely different level as compared with the past.

CSSP: How did you communicate the results and action plans of your Strategic Plan within your company?

Jeb: We held a company meeting with handouts and presentations. Further, we involved each person in one or more action plans. We had no problem finding willing volunteers. The individual action plan teams meet on to develop, implement, and monitor the plans. Where appropriate we use Key Performance Indicators (KPI's), which are germane to individual, department and company-wide goals.

CSSP: How did Simplified Strategic Planning help you with your last acquisition?

Jeb: Simplified Strategic Planning forced us to gather all the information on markets, competitors, etc. After we got all the data onto paper we got a clear picture of the good, the bad, and the ugly of our industry. The process of analyzing the market and product segments opened our eyes to areas that we needed to de-emphasize (or get out of altogether). Further, we learned the areas that provided the best opportunities for short and long term profitable growth. One area that jumped out was the potential of Texas, Oklahoma, and Arkansas. As a result of Strategic Planning we determined we would need a branch in Houston to reap the benefits. Simplified Strategic Planning prepared to us to purchase an existing company just nine months later. Happily, the acquisition is paying off handsomely.

CSSP: In summary, how would you say that Simplified Strategic Planning has helped ECCO?

Jeb: Simplified Strategic Planning has paid multiple benefits:

Financially:
We replaced $1,500,000 in lost contract sales in a down market.
We were able to raise our gross margin 3% in a down market.
We had a profitable year in a down market while incurring substantial costs making an acquisition.

Process:
Has given the company focus
Has provided the ability to make decisions quickly with high accuracy.
Has vastly improved communication
Is improving all our leadership skills
Enabled us to make a significant acquisition
Has resulted in a greatly expanded presence in the industrial market.

To find out more about ECCO: www.equipmentcontrols.com

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