It was 1995. I had joined a company as Group Financial Manager after consulting to them for several months, and it was beginning to dawn on me what a huge challenge I had taken on. The company was in trouble, and the MD had asked me to fix one division in particular – a manufacturing division that was fraught with problems, from worker unrest to product quality, from capacity constraints to inventory issues.
My girlfriend and I had decided to spend a long weekend at the Kruger Park on a hiking safari, and since Angela was driving, on the way there I started a book that I had wanted to read but had not had the time. It was titled ‘The Goal’ by Eli Goldratt, and I had been referred to it by a colleague more than a year before. It made compelling reading, and by the time we got back after the long weekend, I had finished the book. On the Tuesday I hit the ground running and started implementing the methods spoken about in the book, and just 6 weeks later the result was a turnaround, from R250k per month to R750k per month and we were already cash flow positive a month later…
Anyone who has been engaged in Management Consultancy will tell you that such an achievement is unusual to say the least. What was it that turned a ‘Dog’ – the term used in industry for a failing business that should be closed or sold – into a ‘Star’, Continue reading