In short:
- Facing the impact of the 2008 crisis, Profiplast needed a clear medium-term strategy to increase efficiency and sales in a declining construction market.
- DEVELOR became a strategic partner, delivering a comprehensive, diagnosis-based solution covering strategy, sales effectiveness, lean management, and organizational development.
- The cooperation resulted in a 33% sales revenue increase during a market downturn, with strong ROI achieved from a targeted, multi-year development program.
Profiplast Ltd. was established in 1989 partly by Hungarian and partly by German capital. Presently they are a dominant player on the domestic market in producing and distributing plastic and metal subsidiary profiles, which are used in construction and industrial activities.
Challenges of the management
In the autumn of 2008, the first waves of the crisis reached the construction industry, and with that, Profiplast as well. By autumn, the short-term plans developed that summer turned out to be impossible to fulfill. Norbert Tajti, the Managing Director of the company, considered it important that the management should put together a medium-term strategy in reaction to the challenges of the crisis to increase organizational efficiency and the revenue of the company. The objective was to develop a more efficient sales model with which Profiplast would be able to increase its sales volume both on the domestic and export markets. The management of the company understood that without a precise diagnosis, they would only be treating symptoms in handling problems, and the lack of a medium-term strategy would have a negative effect on the organization. Profiplast was looking for a complex solution for their complicated problem and a consulting partner that has more than one area of expertise and considerable experience in
- strategic planning
- sales effectiveness development
- lean management
- organizational development.
Profiplast found this partner in DEVELOR, which was not offering a ready-made solution for the problem, but rather proposed a strategic cooperation based on thorough preparation. In formulating the strategy, besides sales development, it was important to harmonize changes with the activities of the back-office areas (production, logistics, and quality assurance) for efficient cooperation. To reach this, DEVELOR had the right resources and experience.
“I was looking for a consulting partner that is able to provide versatile solution for our complex challenges along with guaranteed measurable results.”
Norbert Tajti
Managing Director
Profilplast Ltd.
The results
The management and owners expected to create a more efficient operation, and that Profiplast would increase its sales volumes in its own markets.
As a result of the development in the years 2009-2011, both nationally and internationally, Profiplast managed to successfully increase its turnover.
Overall, they managed to reach a 33% increase in sales revenue, while the domestic construction industry decreased continuously. The developmental program has reached its objectives, and both the management and owners were satisfied with the results.
Return on investment
In nearly 3 years, Profiplast has invested close to HUF 7 million (app. EUR 23,000) into training and consulting-oriented development programs. This investment showed a significant return since they managed to reach their cost-saving ideas and their growth targets during the years of crisis, when the construction industry had a remarkable decline.
“The money we invested in this developmental process has paid off manifold.”
“I see a lot of reserves in the company even after 3 and a half years, and I consider Develor to be a good partner in bringing these potential reserves to the surface and turning them into our competitive edge.”
