New structure for sustainable growth

by - 27 February 2023
How AVDO helped a leading premium developer reduce customer acquisition cost by 25% while extending planning horizon 12x

Client

One of Central Asia’s largest and most recognisable real estate developer, responsible for over 50,000 new square meters a year. 

A vertical group managing full development cycle, active in both commercial and residential sectors, but primarily known for innovative premium apartment blocks.  

Challenge

Following a period of double-digit growth, with a number of new businesses added to the group, the company expanded ahead of its structure.

With resources spread thin across the portfolio, it had to transform a large, unsystematically growing network of ventures, into a structured enterprise:

  • Review its strategic goals
  • Translate goals into operational targets
  • Develop a flexible structure to allow the group operate as one
  • Develop processes for efficient resource management
  • Mentor the client team to efficiently operate the newly developed tools 

Stage 1: Diagnostic

AVDO began with a deep dive into the macro environment and the business itself – running organisational and cross-functional diagnostic, auditing materials and engaging stakeholders across teams and layers in individual and group sessions.

The diagnostic confirmed what the client had suspected: 

  • The company’s mission & values were abstract and not actionable
  • Its strategic goals were unclear and not directing daily operations
  • The structure was dated – unfit for the enterprise it has become
  • The processes were inefficient and wasteful of time, human & material resources
  • Finally – the individual responsibilities & KPIs were unclear, hampering further growth

Stage 2: Strategy sessions

Having brought the stakeholders on the same page, AVDO worked with the wide client team to establish strong base for all future works:

  • Developed mission & vision – key strategic goals to work towards
  • Clarified company’s positioning, to direct future investments
  • Agreed core growth priorities for the subsequent 2 years

Stage 3: Strategy development

Once the overall strategic guidelines were set, the team progressed to planning

  • Developed a structure of responsibilities, authority and rewards

Empowering individual problem-solving, transforming a pool of demotivated workers into a team of entrepreneurs

  • The developed corporate and functional strategies, included detailed plans and budgets for each department

Stage 4: Change management & sustainable growth

To ensure the transformation runs smoothly, the company has put together a Change Management Team

  • The team is a powerful cross-functional unit, responsible for resolving internal team challenges and coordinating change management efforts across the group
  • Ongoing mentorship and professional development of the client team by AVDO supported a smooth transition that made the most of human and material resources, preserved the know-how and set the company up for sustainable growth

Outcome

Six months after the core project: 

  • Strategic priorities help identify optimal investment opportunities
  • Operational tools allow transparency and foresight
  • Integrated IT systems allow more reliable decision-making
  • Planing horizon has increased from 1 month to 1 year
  • Client acquisition cost have decreased by 25%
  • Operational goal completion has increased from 40% to 110%