Background
ICL Hong Kong had dominated the sales of large mainframe computers
to the Government and Public Utilities and also had a sizable
commercial base of customers. Product problems had caused a bad
relationship to develop with customers and this was public knowledge.
There had been the loss of a major Public Utility account and
the rest of the mainframe base was due for replacement and under
threat. Sales of small systems and terminals were not achieving
the projected revenue and profit. The cost base of the company
was too high for the projected level of business; a loss was
forecast for the year. A plan had been produced to reduce the
cost base but not implemented. Expatriates staffed key positions
in the company. Notice had been given by the office landlord
that he would not renew the lease and we would have to move within
the next six months, as the site was being redeveloped.
Brief
• Return
the company to profitability.
• Retain the current customer base.
• Develop a local management team.
• Develop a local to take over as Managing Director.
• Relocate the company.
My Approach
• Immediately
implement the plan that had been produced, reducing staff numbers
and relocating all the expatriates back
to the UK.
• Selectively replace sales people.
• Change strategy to focus resources on retaining the base rather
than chase after emerging small systems markets. The skills base
and culture off the company was in the sales and support of large
mainframes.
• Regain customer confidence by developing a personal relationship
with the customers and ensuring the company delivered on its
commitments.
• Restore ICL Hong Kong image and influence, became Computer Industry
Federation Chairman and member of the Hong Kong Government Training
Board representing the IT Industry.
• Develop and implement a sales and marketing strategy to grow
and retain key accounts.
• Negotiate the company out of bad agreements.
• Develop the management skills of the local staff.
• Relocate company in prestigious offices in a developing area
of Hong Kong where rents were lower. Take advantage of falling
rents when renegotiating the contract to fix cost of accommodation
for the next five years.
• Once the base was secured develop with business partners marketing
plans that would increase revenue from large systems sales.
• Target new large mainframe sales opportunities
Achieved
• Turned company round in the first year from forecast
loss of £1.1M to profit of £116K
• Restructured the company, reduced overheads and relocated office.
• Developed local staff to replace returning expatriates, handing
over to a local Managing Director.
• Changed the culture of company from Expatriate to Chinese.
• Rebuilt company image and reputation.
• Retained and grew profit from all major customers.
• Secured revenue stream to support the five-year planned growth.
• Developed new business and prospects.
• High sales achiever, Atlas Club 1983 and 1984.
•
Grew into the most profitable ICL subsidiary, achieving 22.8%
return on revenue. Profit £1.13M, Revenue £4.95M.
Brian Lewis
Profile
An International Business Change Director experienced in both
FTSE 100 companies and the public sector with core skills in
change management, process re-engineering, information technology
and software development. Impressive record of delivering commitments
and meeting financial targets in a wide range of roles - Business
Turnaround, Channel Development, Business Development, Project
Management - in Europe, USA, Middle East and Australasia.
