Task
The owner of the agricultural complex, which unites apple orchards, vineyards, irrigated lands, an agricultural equipment base and a storage facility with refrigerators, turned to IGM with a request to ensure the self-sufficiency of the enterprise and reach the expected profit.
The farm was constantly faced with the problem of theft, unfair performance of work by employees. Each new invited "expert" on agricultural technologies criticized the work of the previous one, but his results were also not successful. Nobody took responsibility for themselves. There was no common vision of the prospects for the development of the economy, and the need for additional annual investments from the investor only grew.
See Opportunities
IGM consultants helped the owner look at the business from the point of view of revising the scenario or algorithm of success, rather than from the point of view of existing problems and endless struggle with them. We decided not to waste time and resources on the elimination of individual, long-standing difficulties and shortcomings. An alternative technology for solving the problem was proposed, which has already had positive results at similar enterprises in the world.
Solutions
The owner of the agrocomplex, with the active assistance of IGM consultants, has implemented a comprehensive transformation program of the enterprise.
First of all, an audit was made of all assets of the economy and an assessment of the prospects and feasibility of their use. Conducted a marketing study of competitors from among similar enterprises in the region and other facilities with a similar climate, studied the demand for farm products and the potential for demand for processed products, the potential of the raw material base and terms of supply. In parallel with this, we were able to establish management accounting and budgeting, introduce a planning system and tighten control over the implementation of plans by responsible persons.
The key task was to form a team that would be competent and sufficient for independent work, that is, without consultants. The entire first year was spent on replacing about 70% of managers and setting up business processes. Extensive consultations with international industry experts made it possible to work out the optimal operating mode of the agricultural complex and develop a development strategy.
Results
For 2 years, it was possible to establish a management system and give impetus to the development of the agricultural complex. Provided income growth by 217.8%. We restored 70% of previously idle equipment, which made it possible to carry out agricultural work on time and in due volume according to the developed agricultural map. Energy losses at the storage have been reduced by 1.5 times and an additional square of the warehouse has been obtained. We diversified the business through the separation of separate business units: orchards, vineyards, corn, storage with refrigerated chambers, MTS, apiary, small animal husbandry and processing of fruit and vegetable products, trade and commercial direction. The financial burden on the investor has been significantly reduced by leasing new machinery and equipment. A risk map has been developed.
IGM helped to obtain a significant economic effect, strengthen the farm and the team of the agricultural complex, and form an understanding of the strategic prospects for the owner.