About the client
Our client is a professionally managed company with ISO 9001:2008 quality management system. It is established with a well-diversified portfolio of premium products and innovative services. It caters to a large and loyal clientele in the Middle East region. It aims to enhance the performance of local industries and increase overall efficiency and productivity. It has a team of well qualified engineers. The MD of the company is an engineer with over 20 years of hands-on experience himself. Our client operates in the region through various divisions, such as–
- Project division
- Equipment division
- Process plant and accessories division
- Premium hand tools division
Issue at hand
Our client was experiencing low productivity in its existing pool of human resources, and saw stagnant revenue figures for a long period of about 7 years. Additionally, the owner was able to identify opportunities in the regional business environment, but he did not have a plan for a way forward.
Leap proposed that contracts be made with division-heads to introduce pay-for-performance, thereby splitting their pays into variable and fixed components.
Leap developed a strategy plan to increase their efficiency and productivity, and to explore other business opportunities. Leap also recommended that periodical business performance reviews, Monthly Performance Reviews (MPRs,) be conducted to stay aligned with the strategy plan so formulated.
The idea regarding pay-for-performance boosted the morale and willingness of personnel to exceed their calibre, thereby increasing overall productivity in the organization. The MPRs also had an immensely positive impact, in terms that any and all deviations against the plans were timely identified and the correct courses of action were taken.