Strategic Planning

Client Success Story: Strategic Planning

Background

Three large and successful cooperative grain companies were committed to merging and growing in an intensely competitive geographic area. All three brought distinct cultural behaviors to the merger, from front-line employees to leadership to boards of directors. With continued advancements in production agriculture, all of the entities had dated assets and were experiencing stagnant sales and low returns.

Assignment

ISG was hired to initially assist in the merger and work with the newly formed board of directors to hire a CEO. The next step led to a strategic planning assignment with annual updates. After conducting the pre-work and research, ISG facilitated the planning sessions with an emphasis on plan execution. Over time this included board development, sales management, and acquisition initiatives.

Results

At the end of five years, revenue had grown from $220 mm to $450 mm and ROE had grown from 4% to 12%.

Annual planning became part of the company fabric, with staff presentations, goals, action plans, timelines and accountability. While capital improvement needs were high, the discipline of planning allowed a long-term view with the ability to adjust and meet the most urgent needs.

With the convergence of the three cultures, a professional organizational structure was developed with clear lines of authority and accountability. The sales efforts were elevated with training and tools transitioning to defined account management and an advanced CRM system.