Case Study 7th: Delegation and ERP Implementation for Sustained Growth

Company Overview

The client, a family-run pharma machine manufacturing business, was established in 1980 by Mr. Kirti Bhai. Known for its strong market reputation, the company expanded steadily from a team of five to 150 employees, growing its turnover from ₹1 crore to ₹20 crore by FY 2009-10. Over the years, it diversified into FMCG packaging machinery and agency business, driven by a vision for growth.

The Challenge: Stalled Growth and ERP Implementation Failures

In 2008, the company faced critical challenges in executing its growth plans and implementing an ERP system tailored for pharma machine manufacturing. Despite having a robust ERP system and support from consultants, the implementation stalled, highlighting key issues:

Our Approach: Bridging Gaps and Restructuring Processes

We conducted a comprehensive gap analysis and implemented a series of structured interventions to address these challenges:

1. Vision Deployment:
  • Facilitated multiple sessions with the management to align their vision, mission, and goals with actionable strategies.
  • Defined long-term and short-term objectives.
  • Designed an organizational hierarchy and clearly defined roles and responsibilities at every level.
  • Introduced middle management to improve accountability and delegation.
  • Initiated process mapping to align workflows with ERP functionalities.
  • Ensured ERP implementation covered CRM, inventory management, and other critical operations.
  • Conducted regular meetings with individual departments to establish Key Performance Indicators (KPIs).
  • Empowered middle management with defined responsibilities, reducing dependency on top leadership.
  • Fostered a culture of discipline through consistent use of MIS and structured meetings.
  • Enhanced confidence within the leadership to explore new business verticals.

Key Outcomes Achieved

1 Operational Excellence:
  • Five new departments were established with clear accountability and KPIs.
  • ERP implementation streamlined processes across CRM, inventory, and operations.
  • Middle management gained decision-making authority, reducing workload on top leadership.
  • Information flow became more structured, enabling data-driven decisions.
  • Turnover increased from ₹20 crore to ₹30 crore within two years.
  • Successfully expanded into three additional business verticals, including joint ventures with multinational firms.
  • The organization’s vision, mission, and goals were effectively deployed.
  • Data analytics improved, enabling preventive actions and better decision-making.

Future Roadmap

To sustain and build on these achievements:

  • Empower middle management with greater delegation authority.
  • Develop Standard Operating Procedures (SOPs) and flowcharts for all processes.
  • Expand ERP integration to production and quality management.

This case study demonstrates how structured delegation, process alignment, and ERP implementation can drive operational efficiency and business growth, transforming challenges into opportunities for success.

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