The Automotive Consulting Group, Inc.

Business consultants who deliver results

IMPROVING BUSINESS PERFORMANCE (IBP)

ACG is committed to improving the business performance of manufacturing companies.  We have broad experience as senior managers in manufacturing businesses, so we know first hand what it takes to improve results.

• Top performing companies will typically have higher margins, productivity and ROA than their competitors – all of which significantly improve the company’s valuation.

• Internal performance improvement provides a solid base for both profitably growing the top line and building a platform company.  Attempts to grow the top line first will often exacerbate existing problems.

THE IBP 5- STEP PROCESS

Improvement begins with an in-depth analysis of the ‘current state’ of the company.

Step 1 - Our cross functional team conducts a rigorous eight-point assessment of the company’s internal strengths and     weaknesses.  This assessment provides a ‘fresh eyes’ look at the situation from an independent perspective.

Step 2 - From this analysis, we are able to generate improvement plans and provide new opportunity insights.

Step 3 - An improvement plan is developed in collaboration with key people within the company.

Step 4 - Roles and responsibilities are assigned and individuals are held accountable

Step 5 - Budgets are established and key performance metrics are developed to ensure that the performance improvements are achieved on schedule.

Our experience shows major improvements result from focusing on the Performance Pyramid^sm that addresses the following interactions:

• Management processes

• Strategic capabilities

• Company culture

PERFORMANCE PYRAMID^SM

• Business Performance is strongly driven by Employee Performance

• Employee Performance is driven by the bottom three business aspects, which are highly interactive - the company assessment typically indicates which aspect to focus on first

• Management Processes are quickest to improve

• Strategic Capabilities require more time to address

• Company Culture is the most difficult to change and may require several years to achieve

REPRESENTATIVE IMPROVEMENT RESULTS

• Contract metal fabricator - $42 million revenue, losing $2 million, became $100 million in revenue with 18% net profit and ROA of 34%

• Contract metal fabricator - $130 million in revenue, with 9% net profit, became a $185 million revenue fabricator and assembler with international operations with 17% net profit

• Agriculture equipment manufacturer - $38 million in revenue, with 14% net profit, became $63 million in revenue, with 23% net margin and ultimately sold for $66 million

• Automotive components supplier - $40 million revenues with loss of 2%, turned around to operating profit of 9% in one year

• Durable consumer products manufacturer - $20 million in revenue with net operating loss of $1.5 million, became $42 million in revenue with 22% net margin and sold for $40 million

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