Prepared by: Eric Fry, Principal – Pacific Northwest
Industry: Distribution
Revenue: $40M+
Location: Bellevue and Issaquah, Washington

Client Background:

• Mechatronics founded in 1978 by two brothers; master distributor of ball bearings, rod ends and other parts for aerospace, medical and a variety of industrial and EOMs.
• The company enjoyed a period of nearly 30 years of double digit year over year sales growth and expansion, but by ’06 to ’07 the company noticed a significant slowing of growth. As the company organization scaled substantially over the years the downward pressure on top line revenue created a significant decline in margin.

By January 2008 Company ownership and management determined that to re-energize the company, accelerate revenue growth, increase margin and overall profitability it needed to:

• Review how best to restructure the business and management responsibilities;
• Assess and align personnel skills and talents towards revenue productivity;
• Drive accountability throughout the organization;
• Establish process to accelerate new business growth from prospective and current customers

OneAccord Solution:

• OneAccord defined in less than 3 weeks in collaboration with the CEO, ownership, and key leaders; a step by step phased operating plan to help address immediate management and cultural pain points. The intention was to relieve organizational pressures that were impeding growth.

• The operating plan included some of the identified issues brought to OneAccord but expanded to a broader look about the direction of the organization’s vision and mission; the roles of ownership, management, and employees. Purpose:

• Identify how best to restructure; then to align personnel in the right roles with measured accountability;
• Determine underlying people issues need to resolve, then company performance would re-energize.

Engagement Highlights:
Over a period of 6 well defined phases drawn from the initial operating plan, yet flexible to adjust to circumstances, and checked off with management OneAccord:

• Ascertained and defined company talent pool to help shape organizational direction. Conducted more than 30 DISC Personal Style and Fit evaluations that included middle to senior management;
• Recommended, implemented, and trained new customer facing, revenue driven teams empowered to deliver results aligned with company needs, group and individual accountability;
• OneAccord provided on site leadership to drive execution via an interim VP of Sales and Marketing from February 2008 - April 2009 whose role focused on:
  • Building of dynamic forecast and flash reporting capabilities for executive level decision review;
  • CRM tool management;
  • Business development via lead generation program;
  • Sales management of teams to key goals and metrics.

Results:
By 2009...

• Sales increased +16.9% (2008 over 2007)
• Sales actual exceeded 2008 forecast; +10% vs. a +7% goal.
• 5% incremental or net new business contribution of total revenue; with a +8 p.p. margin gain to 39%;
• Established organizational and sales leadership foundation for sustained corporate growth consistent with ownership and management goals.
• Mechatronics CEO, Kent Ross commented:

“The results (with OneAccord) were more than I had hoped for. They helped Mechatronics move to the next level with double digit growth and much happier employees with a future. Mechatronics has and will always be a good place to be, but now we are on the road to being great. You truly helped us to ‘Build it Strong, Build it Deep and Build it to Last.’”
A Sincere “Thanks” - Kent Ross