ISO 9001 used to codify an ongoing process of creative destruction

Summary

Software company uses ISO 9001 to codify an ongoing process of creative destruction in order to drive improvement.

The problem

The directors of the company wanted to use the process of implementing formal ISO 9001 management and performance measurement systems to both drive and codify a process of creative destruction and ongoing change in the organisation. 

The client

The company is a medium sized operation with teams in London and Bangalore.  The company had recently disposed of the high-volume low margin hardware operations and, in preparation for a sale in 2-3 years, now wanted to “ramp up” revenue from the lower volume higher margin bespoke software development activities. 

The approach and the solution

The company were now concentrating on its strengths and wanted to articulate the benefits and capabilities it wanted to deliver for its clients; its “purpose”. 

Assignments were focused on marketing automation products and services and Statius’s first task was to help the company articulate the company purpose which was defined as being:

“We turn client data into information and information into knowledge that allows clients to drive on-line sales and profitability”

Time and effort was then spent in aligning the activities undertaken on a daily basis into processes, practices and procedures that aligned with the company’s purpose. A performance measurement system, aligned and integrated with the company purpose and processes, was also introduced.

In addition, an initiative was introduced where projects with a foreseeable, predictable and ongoing revenue stream would be discounted to the client if the company could retain the IP and thereafter develop commercial products for general release.

The outcome

As a result of the work undertaken the business model was radically overhauled; originally the company had focused on securing a small number of high value “projects” to work on at any one time, as a result, demand and cash flow varied significantly. The business model was re-focused on longer term customer relationships. The company made the initial investment in time and money to deliver the “project” but secured a longer term more profitable relationship with their client.

  • “After the initial pain, cash flow has stabilised and margins significantly improved”
  • “The business is now much more secure for the longer term and much more saleable”

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“This (assignment) has confirmed some things I knew, and that was useful; some things I didn’t and that too was useful. However, most importantly, I guess we all felt a bit uncomfortable at times but now we have a real and robust improvement plan to go forward with.”
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Securing new business

“Without the help of Statius and the systems and processes developed we would not have secured £27m of framework agreements and term contracts.”
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Changing thinking

“Statius challenged and changed our thinking, without them we would never have changed the business model and we’d be far less prepared for sale.”
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“Statius’s hands on approach and genuine interest in the development of the Integrated Management System meant that we successfully achieved ISO 14001 certification (at the first attempt) and we shall rely on their future support as we develop our systems.”