Growth in time of crisis?
Not a problem!
Profiplast Ltd. was established in 1989 partly by Hungarian and partly by German capital. Presently they are a dominant player on the domestic market in producing and distributing plastic and metal subsidiary profiles, which are used in construction and industrial activities.
Challenges of the management
In the autumn of 2008 the first waves of the crisis have reached the construction industry and with that Profiplast as well. By autumn the short-term plans developed in that summer turned out to be impossible to be fulfilled. Norbert Tajti, the Managing Director of the company considered it important that the management should put together a medium-term strategy in reaction to the challenges of the crisis to increase organizational efficiency and the revenue of the company. The objective was to develop a more efficient sales model with which Profiplast would be able to increase its sales volume both on the domestic and export markets. The management of the company understood that without a precise diagnosis they would only be treating symptoms in handling problems, and the lack of a medium-term strategy would have a negative effect on the organization. Profiplast was looking for a complex solution for their complicated problem and such a consulting partner that has more than one area of expertise and considerable experience in
- strategic planning
- sales effectiveness development
- lean management
- organizational development.
Profiplast found this partner in Develor that was not offering a ready made solution for the problem, but it rather proposed a strategic cooperation based on thorough preparation. In formulating the strategy, besides sales development, it was important to harmonize changes with the activities of the back-office areas (production, logistics and quality assurance) for efficient cooperation. To reach this Develor had the right resources and experience.
“I was looking for a consulting partner that is able to provide versatile solution for our complex challenges along with guaranteed measurable results.”
As a result of the development in the years of 2009-2011 both nationally and internationally Profiplast managed to successfully increase its turnover.
Overall, they managed to reach a 33% increase of sales revenue, while the the domestic construction industry decreased continuously. The developmental program has reached its objectives and both the management and owners were satisfied with the results.
Return on investment
In nearly 3 years Profiplast has invested close to HUF 7 million (app. EUR 23,000) into training and consulting oriented development programs. This investment showed a significant return since they managed to reach their cost-saving ideas and their growth targets during the years of crisis when the construction industry has had a remarkable relapse.
“The money we invested into this developmental process has paid off manifold.”
“I see a lot of reserves in the company even after 3 and half years, and I consider Develor to be a good partner in bringing these potential reserves to surface and turn them into our competitive edge.”