The Implementation of Nespoli Group’s SMA System: The Service Level Agreement Pilot Project

In the last 10 years, the Nespoli Group is grown exponentially through acquisitions in Italy and abroad. In a first step, the model of development has been to acquire new companies, leaving the dedicated local management of the acquired companies. The dual advantage was to maintain business continuity and to have a simplification of the chain of command; the disadvantage was the maintenance of an identity of the acquired companies that was not merged into the “Nespoli vision”, as stated by Dr. Ripamonti (Group Planning & Control).

In recent years, the size and complexity of the Group have become such as to require a change in the Group’s vision; hence, it was created a headquarter structure with the goal to:

  • • Steer the group as a single entity.
  • • Act as a chain of transmission between strategies identified by the ownership and Group companies.
  • • Develop the business unit that represents the main product lines (Paint Tools, Metal Tools, etc.) by focusing on the needs of customers.

The Group’s strategy continues to be a growth strategy, walking in two directions:

  • (a) Markets: strength in markets already served and further geographic expansion into new high-growth markets such as Turkey, Russia and China
  • (b) Business: diversification in products for household cleaning, spray paints, in specific products for the construction industry (Metal Tools) and in products dedicated to the care of the wood and leather

Dr. Scribani, the Nespoli Group Chief Value Officer (CVO), explained the growth path for products: firstly, these are complementary products; secondly, they are often purchased from the same “buyer”; and thirdly, they fall into the Nespoli Group “mission”. Similarly, the growth path in the new markets is aimed:

  • 1. To exploit the competitive advantages already acquired in the markets currently occupied. It is possible to adopt a “copy and paste” strategy.
  • 2. To exploit the high rates of growth in emerging countries.
  • 3. To follow Nespoli Group main customers in their international expansion.

In order to develop this vision, the Group has started to implement IT tools that allow setting up basic information on the subject of strategic planning and control. Furthermore, the Group has chosen to implement a “pilot project” to test the real potential of the system itself. This project consists in a system capable to evaluate the “service level agreement”.

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