Aerospace CAGR Increasing from Business Turnaround
Situation at Hand
A division of a large aviation MRO was in a revenue free-fall due to lost clients and overall market decline. We were hired to conduct a business turnaround, position the business for profitable growth, and increase aerospace CAGR for this division.
Problem to Solve
There were many key problems that were quickly identified. First, the revenue had dropped consistently over an 8-quarter period totaling to about 30% revenue decline and more than 35% share loss. Consequently, the client’s profitability was on the decline as cost cutting measure were becoming less effective and customer VOC scores were more than 50% dissatisfied. Additionally, the employee satisfaction was at an all-time low of less than 25% satisfied and more than 20% regrettable loss.
Approach and Solution
Our focus was placed on a quick and structured assessment of people, processes and systems. To start, we conducted an in-depth assessment of the culture. After we revealed areas of quick and effective change to address employee and customer experience. Next, we ensure that a customer advisory board with clear accountability and deliverables was established. Then, a VOC feedback assessment drove front-end structure and process change to improve sales. Lastly, we established a re-focus of the business on core competencies and service offerings with aligned incentives to drive improved performance. In summary, the aerospace CAGR increased to double digits.
In 12 months the following results were achieved:
- 72% improvement…of employee satisfaction ratings
- 55% improvement…in VOC ratings
- 28% revenue growth
- 18% profitability growth
Over a 4 year period…
- 24% CAGR…in a market that grew at <1.5%
- 5% reduction…in employee regrettable loss