CONSULTING AND DEVELOPMENT SERVICES

CASE STUDIES

GB Auto (Ghabbour Auto) is the market leader in the automotive sector in Egypt. With more than 5,000 employees, the company is active in a variety of transport-related sectors, including passenger cars (Hyundai), commercial vehicles (Volvo, Mitsubishi), trucks, trailers, superstructures, construction equipment, spare parts, tires, passenger transport, cargo, and leasing.

Following its successful initial public offering [IPO] in the summer of 2007, GB Auto's Board of Directors identified the urgency of institutionalization to enable the company to attain strategic focus, achieve the planned growth, streamline its activities, prepare for diversification (offerings and markets), and ensure proper management and retention of its human capital.

Following a thorough screening process of four major international consulting firms, the company hired CDS to lead, manage, and execute the 34-month Ghabbour's Institutionalization Program [GIP].

The first phase of the program involved working with GB Auto's Board and executive team to define and formalize the company's vision, mission, andvalues, as well as strategic development initiatives for the Group and for each business unit.

Corporate governance mechanisms were also established and a target corporate organization structure was designed.

The second phase consisted of the development of modern and optimal operating and organizational systems for the various functions (sales, after sales, operations, supply chain, finance, HR, IT, etc.) for each of the business units and at the corporate center.

A CDS proprietary process was followed to ensure buy-in for the developed recommendations and to validate their implementability.

In all, over 500 employees and managers of GB Auto participated in this phase to develop approximately 350 unique processes.

The third phase involved setting up a Program Management Office in charge of implementation project management and monitoring. During the implementation phase, CDS focused as much on the cultural and human aspects as on the technical process of the change.

Realizing the importance of the human element in implementing and sustaining the new business systems, CDS also designed and implemented a new system for compensation and benefits that promotes internal equity, achieves a competitive position in the market, and attracts and retains talent.

Once the front-end as well as support activities were well underway, CDS' focus was turned to the multiple manufacturing sites (passenger cars, trucks, trailers, etc.).

The objective was to streamline the management and the processes associated with running the plants and also to improve the productivity of each manufacturing unit.

A holistic approach based on CDS' methodologies was selected by GB Auto's management, where all aspects of the manufacturing strategy and operations were assessed and redesigned, and new operating modes were put into place.

This included critical areas such as quality management, whereby, using KPIs, the GB Auto manufacturing management team now focuses on, and has full visibility of the areas requiring their attention to produce high-quality vehicles.