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A large-scale multinational company decided to examine its route to market on one of its largest European markets.
As the decision was made to service large customers (designated as platinum and gold customers) directly (meaning via its own sales representatives), it was necessary to define the mode of servicing all other customers (silver and bronze customers), which are several hundred times more numerous than the platinum and gold ones.
The decision was taken to service silver and bronze customers through a network of authorized dealers. At that moment, however, the network of dealers was too large, inefficient, of low quality and ill defined in terms of authority and responsibility to be able to service several thousand existing customers. At the same time, the market share was not high, and analysis showed that there were several thousand further prospective silver and bronze customers which might be reached with a more systematic functioning of the dealers' network.
The next step was and analysis of the market – the existing and prospective customers, or rather their absolute number, the potential scope and potential margin of the dealers' network. Based on this and the dealers' fixed costs for the optimal infrastructure (warehouse, vehicle, sales personnel, support, etc.), the "critical mass" per dealer, and, thus, the optimal number of dealers was calculated. The optimal number of dealers was several times smaller than the existing number.
From the existing network of dealers, the best were selected (according to a number of criteria, such as the
vision and strategy of the company, leadership and management qualities of the owner/director, good and motivated sales personnel, high quality and strategically positioned infrastructure, financial stability, ethical and moral values in conducting business, etc.). Also, in regions where none of the existing sales people satisfied the set criteria, new distributors were hired.
The next phase consisted of the contractual definition of the rights and obligations of the newly established network of dealers, the creation of a team environment and intensive training, which enhanced their knowledge and skills in order to be up to the challenges of the market.
The result of this optimization of the route to market may be seen either from the point of view of the dealer or from that of the multinational company. Afterwards the dealers were more satisfied and motivated. Their business dealings with the multinational company became clearer regarding their rights and obligations (which gave them more security in their investment), they received much greater sales support, and a firm partnership was created between them and the multinational company.
The results achieved by the multinational company through this optimization were impressive. During the year-long optimization and restructuring of the dealers' network, the sales did not drop, in spite of a multiple reduction of the number of dealers. Already in the next year the sales started to grow significantly. In addition, the expenses of the multinational company were substantially reduced (for example, a lower number of orders, a more efficient collection of payments, better production planning).
If you require help analyzing the state of your business or developing a business strategy, you need a consultant. If, in turn, you are looking for help with the implementation of the strategic measures you have defined, an interim manager will be your best choice.
An interim manager can at the same time be a consultant, but a consultant is, usually, not an interim manager, because he does not engage in the implementation of the solutions he proposes.
The diagram above clarifies the division of roles of a business consultant, an interim manager and a director-employee.
The difference between a consultant and an interim manager thus lies in the fact that a consultant advises and recommends, remaining responsible to his own company. An interim manager implements the agreed measures, being directly and exclusively responsible to his client.
There are, however, persons, who due to their rich business experience, can at the same time function as business consultants and interim managers.