Change Management For Success One Page

Change Management for Success
In 2017, Beacon Impex, a subsidiary of Masood Textiles, faced a major challenge when a
key international customer issued a warning due to delivery delays, long lead times, and high
rejection rates. This situation highlighted the need for change. The company, under MD
Shehzad Nadeem's leadership, responded by separating its sportswear and underwear divisions
to create a dedicated focus on underwear production. This decision marked the beginning of a
remarkable transformation.
1. Understanding Customer Needs:
Beacon Impex refocused on customer demands—reducing lead times, improving on time
deliveries (OTDs), offering competitive pricing, and adhering to high quality, ethical, and
environmental standards. These priorities led to a significant improvement in client satisfaction.
2. Insourcing and Cost Reduction:
The company discovered that importing elastic and packaging materials contributed to high
costs and inefficiencies. By establishing an in house elastic production plant, Beacon not only
reduced costs but also cut lead times and improved product quality.
3. Strategic Partnerships:
Beacon restructured its relationships with strategic partners by assigning specific managers to
handle each partner’s needs, particularly during the pre production phase. This resulted in
stronger, long term partnerships and helped win more contracts.
4. Workforce Mindset Shift:
One of the biggest challenges was changing the mindset of the workforce, especially sewing
operators. Through training programs, motivational campaigns, and management involvement,
Beacon worked to instill a more scientific approach to work. This shift in mindset improved
productivity and quality.
5. Sustainability Initiatives:
Beacon also made significant progress in sustainability, reducing water usage and energy
consumption in its production processes. This focus on sustainability positions the company for
future growth while adhering to global standards.
A Change Management Success Story
In 2017, Beacon Impex, part of Masood Textiles, faced a critical challenge when a major
customer warned them about delivery delays and high rejection rates. This forced the company
to implement a focused change management program.
1. Refocusing Operations:
Beacon separated its sportswear and underwear divisions, creating a dedicated
company to streamline underwear production. This focus helped improve lead times, on
time deliveries, and product quality.
2. Insourcing to Reduce Costs:
By setting up an in house elastic production plant, Beacon reduced costs and
eliminated supply chain bottlenecks, improving efficiency and product quality.
3. Customer Centric Partnerships:
Beacon realigned its partnerships, assigning managers to directly handle customer
needs, particularly during pre production. This strategy strengthened customer
relationships and led to long term contracts.
4. Workforce Transformation:
Through targeted training and motivational efforts, Beacon changed the mindset of its
labor force, especially sewing operators, leading to higher efficiency and reduced
rejection rates.
Beacon's change management program resulted in significant growth, turning it into a leading
exporter and setting a strong example for other companies in Pakistan.
A Change Management Success Story
Beacon Impex, a subsidiary of Masood Textiles, faced a critical turning point in 2017
when a major international customer issued a warning over poor on time deliveries (OTDs),
long lead times, and high rejection rates. This led to a restructuring of the business, with a laser
focus on underwear production to meet customer demands and improve efficiency.
1. Focused Business Strategy:
Beacon Impex separated its sportswear and underwear production, allowing it to focus
exclusively on underwear. Under MD Shehzad Nadeem's leadership, turnover grew from USD
18 million in 2017 to USD 99 million by June 2022 , with a target of USD 150 million in 2023 .
2. Improving Customer Metrics:
OTDs increased from 60% to 97% .
Average lead time reduced from 110 days to 50 days .
The company still retained its critical customer, growing business with them from USD 18
million to USD 54 million .
3. Insourcing and Operational Efficiency:
To reduce costs and eliminate supply chain bottlenecks, Beacon Impex set up its own elastic
production plant, covering 95% of its elastic needs . This saved time and costs and allowed the
company to offer high quality products to clients like Hugo Boss.
4. Workforce Training and Mindset Shift:
One of the biggest challenges was changing the workforce's mindset, especially sewing
operators. Beacon adopted motivational tools and training techniques inspired by Toyota's
methods. Employee turnover was reduced by increasing female labor from 10% to over 35% ,
ensuring a stable and motivated workforce.
5. Sustainability Efforts:
Beacon Impex significantly reduced its environmental impact:
Reduced water usage from 130 liters to 33 liters per kilo of cloth , saving 1 million liters of
water daily .
Replaced diesel generators with gas generators, connecting exhaust to boilers to save
energy.
Future Challenges:
Beacon Impex continues to focus on sustainability and quality, with plans to introduce robotics
for efficiency. Securing raw materials and skilled labor remains a challenge as the company aims
for consistent growth.
Conclusion:
Beacon Impex’s change management program, focusing on operational efficiency, workforce
development, and sustainability, transformed the company into a successful exporter,
positioning it as a role model for Pakistan’s textile industry.

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