Deloitte & Touche Consulting Group case analysis

Tingyu Chen

02/04/2021

What is the core problem that SKS is facing?

SKS is facing critical cash flow which delays payment to several suppliers, and it also

fails to deliver products to customers on time.

Which other problems was SKS facing?

SKS faces other underlying issues such as the lack of efficiency in documenting accurate

inventory. In addition, Janovich, the plant manager shows the behavior of finger pointing

between sales department and the manufacturer, worsening the situation of ineffective

communication and collaboration within the company.

Why were they facing these problems?

As SKS aims to grow its product range, the level of responsiveness required from the

customers increased as well. Although more effort and commitment had been put from the

operators, press-setting is still considered as a position for skilled employees. As a result, many

components had to sit between presses and “split-batches”, causing the production to be

delivered on time much more challenging.

What evidence is there that supports your root cause assessment?

The evidence is collected through the original case from page 4 to page 5, where it states

SKS’s current business challenges.

What additional data would you like to have to further support your claims?

In order to support my opinions, I would like to seek for additional sources such as the

selection criteria for press-setting workers, forecast numbers of previous seasons, and the

allocation of budget. With both qualitative and quantitative data, more clarity will be provided in

finding the bottleneck.

What is being planned by SKS and Deloitte to address those issues?

There are two major aims planed by SKS and Deloitte: one is to create a 12-week

engagement to calm SKS’s current cash position, and the second objective is to redesign cross-

functional business processes in a long run.

What else should be done?

There should be a comprehensive assessment of SKS’s current workforce, including

ensuring whether SKS faces talent shortage in skilled workers, and whether training should be

provided to employees.
Particular to Human Capital advisory services, what solutions could exist?

The consulting process should involve 100% engagement from all involved personnel. As

a personal who is fairly new to the industry, additional assist should be provided from SKS to

support Maria to develop a better understanding of company operational structure.

How does the Trusted Advisor “Trust Equation” factor into Deloitte’s Solution?

The engagement with SKS seemed simple and easy from the first place. Despite the first

unpleasure meet with Skidmore, Maria seems to show her professionalism by planning out three

main goals, as well as the effort of calling colleagues for suggestions. However, the relationship

with the client began to crumble after Maria decides to tackle the problems without seeking any

communication and consultation from her colleagues. Although the intimacy was gradually built

with the client afterwards, the consulting group as a whole failed to demonstrate their priorities

and the willingness to relate with the clients, leading to a tendency in high self-orientation.

What barriers do you expect SKS to face when they implement the solutions?

Some resistance can be a simple fear of change because the uncertainty will cause some

employees to relate change with job loss. There are also barriers when there is not enough

stakeholder’s commitment devoted during the implementation, which a successful engagement

will require the alignment of business objectives and continuous support and commitment from

the stakeholders.

What are some of the risks that your suggestions might lead to?
 the engagement can cause severe operational disruptions such as shortage in cash flows,

imbalanced operational structures, and decreased employee morale.

How would you mitigate those barriers/risks?

To avoid such risks during the execution of changes, it is important to gain consensus

from both consulting group and the company. Clear and company-wide communication should

help the stakeholders to align their values with properly designed incentives and priorities.

What will SKS be able to do when successful?

With better clarity and organized business structure, SKS will be able to have greater

flexibility in cash flows, which will provide customers with seamless and synchronized

production and scheduling process. SKS will also have the chance to relocate its budget for

future investment and development, such as developing overseas sales.

How will SKS know they are successful?

SKS could use some KPIs as a measurement of success, such as the increase in overall

operational efficiencies. If the implementation is successful, “functional silos” will be eliminated

in cross-functional departments, improving the relationship with both customers and the

suppliers.