Luvata are global leaders in engineered solutions with leadership in the industrial use of copper. They have divisions spanning Special/Electrical Products, Tubes and Heat Transfer Solutions. Luvata are a global organisation with major manufacturing facilities in the Americas, Asia and Europe.
Following the acquisition of Luvata by the Nordic Capital group a thorough review of the business was executed. This resulted in ambitious growth objectives of + 10% top line growth accompanied by margin improvement to step change bottom line profit performance. A key to allowing the achievement of the company objectives is an improvement in the organisation’s customer management – Luvata people were technical experts with positive and long standing customer relationships but needed to sharpen their commercial skills as customers evolved to more procurement/financially based decision making.
Task given to STAR
Luvata wanted a globally implemented “customer management programme” in order to capture the value being created within the production and operations elements of the value chain, through enhanced customer management. This augmented their LEAN programme and procurement academy.
The first critical phase of our programme was all about customer management insight, understanding our development start point. Luvata is a large and complex business spanning many markets and divisions and we were aware that previous attempts at “one size fits all” solutions had failed. We simply had to understand the organisation – its people, products, systems, customer base and challenges – before we could develop development road maps. Using the STAR Customer Management Assessment [ SCMA ] methodology we assessed the customer management operations across; Asia, Americas and Europe. Using the SCMA model we assessed all of the business units by region, against 333 good practice standards of customer management, a peer group of companies and highest / lowest within each section.
The process follows a structured process that blends qualitative and quantitative research methodology as follows,
Each business unit working against a development road map prioritised into:
Quick wins, Big prizes and Strategic Initiatives.
Divisional development indicators that allow a divisional approach to customer management development initiatives particular to the division and industry.
Group adoption of the process through in-house resourcing and ‘champion led wave two benchmarking. Indicative return on investment of 15:1.
Work with Luvata’s leadership team to co-create and co-deliver a full sales academy covering their key commercial capabilities
Task given to STAR
Lead the co-creation of core development modules covering their key commercial capabilities then co-deliver with their ‘Specialists’ across the three business units; Tubes, HTS and Special Products.
1. We launched the Luvata Sales Academy at the annual global sales conference.
2. We enrolled, enthused, trained and mentored 12 Sales Specialist across all regions and business units.
3. We co-created 6 distinct learning journey each with a guidebook, toolkit & comprehensive DVD.
4. We all 6 modules over a 24 month period1.
5. We assessed development of sales personnel against a rigorous set of competencies.
6. An on-going programme of re-runs and refreshers is being delivered across all business units and regions.
After 12 months the return was measured in tangible improvements to business performance that have returned the investment many times over. Managing Director of Luvata Welwyn Garden, Amanda Dawson commented, ‘I have seen a better structure to the sales process, I’ve seen the collection of much more information and I’ve seen very motivated people.’