The Seven Myths of Customer Management: How to Be Customer-Driven without Being Customer-Led

By John Abram; Paul Hawkes | Go to book overview

Chapter 4
Measuring Your Way to Success
Allocating Resources for
Maximum Effect

A strategy meeting is apt to generate more heat than light unless every-
body is talking from a common set of numbers.

Up the Organization, Robert Townsend

For one of Europe's largest companies, trading in an industry that was rapidly consolidating, scale was becoming increasingly important. All its major competitors were on the acquisition trail. The firm decided that it, too, must grow and retained merchant bankers to identify appropriate targets. Soon a suitable company was short-listed, a medium-sized player based in the provinces. While it had a significant number of customers, the target company was under-performing compared to its larger rivals. Its brand was significantly less well known and its financial performance was lacklustre.

The acquiring organization made its approach, was greeted warmly and the laborious process of due diligence began. The accountants and bankers worked hard, nights and weekends included. This would be a multimillion-pound deal that could help transform the performance and competitiveness of both parties –

-83-

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