GROWTH > Diagnosing The Causes Behind A Companyís Stalled Growth

Challenge

Client is an imaging solutions company located in the NCR region. Its customers include leading banks such as HDFC, Kotak Mahindra, etc. The company witnessed slow growth for the past 5-6 years. Due to this, the promoters were de-motivated and perplexed, and engaged Vinculum to find out the reason for the slow growth.

Resolution

We diagnosed that the lack of a key enabler technology was the critical issue constraining clientís growth.

Client was using an outdated software for its imaging solution thus there were few people available in this domain. This limited the clientís ability to scale up.

Due to clientís low margins and moderates salary structure, they found it difficult to hire resources.

We also made the following suggestions

  • Assess if migration to a new technology was feasible
  • Hire fresh talent people and train them
  • Arrange funds to invest in technology change and R&D.
Approach

The diagnostic was conducted over a period of four days. We took a hypothesis-driven approach to understand likely causes of the prevalent sluggish growth. We then conducted interviews with the promoters and other senior employees to test each of our hypotheses. Gradually, we noticed that the use of old software was the prime cause behind the slow growth.

Inputs
  • Interviews with promoters and senior managers
  • Customer product reviews.
Results

The client appreciated our diagnosis, and agreed with our findings.