Circumstances :
- A small Belgian SME specialized in the production and cultivation of micro-algae for feed in the aquaculture market started in 2006 with a team of more than 25 people and performed a lot of research on new technologies for optimizing the cultivation: 4 patents resulted from the R&D efforts
- Feed-products for specific markets were commercialized as of 2009, however the company was having difficulties in finding profitability
- The production was on laboratory scale and could not cope with the market demand
- In 2010 the shareholders approved capital injection and asked B-management to search of an interim CEO, to accompany the company through their next growth stage.
Assignment objectives :
- Preparation and implementation of up-scaling of production facilities
- Development of commercial strategy and identification of new commercial partners
Management approach:
- After a quick analysis of the production it became apparent that the entity was lacking sufficient visibility on the biomass yield originating from the cultivation of micro-algae. The Interim Manager set up a complete cost breakdown of the production in order to provide the teams with the right insight in the different cost drivers of the micro-algae production.
- The preliminary analysis also revealed a weakness in the communication flows between R&D and production teams, hindering the collaboration and the commercial development. The Interim Manager was able to install a climate of openness, collaboration and trust, and thus guide a change in mentality and spur a new vision and approach on the cultivation of micro-algae. This contributed to the identification of relevant biomass harvesting performance indicators.
- The different teams needed alignment on the production needs: a trade-off between commercial development and production was needed as the market demand was growing but the facilities needed increased capacity and scaling to adequately serve the market.
- With this new vision the Interim Manager was able to identify potential partners in the aquaculture.
Operational and strategic results:
- At the organizational level the management structure of the company was formalized thanks to a clearer definition of individual responsibilities and the introduction of a formal organization chart. As a result communication and collaboration between R&D and production improved, and trust relations are now established amongst all members of the management team.
- At the production level the entity has gained now great visibility in the yield and monthly production performance thanks to the implementation of a monthly production review dashboard; a yield analysis tool (per algae, per m², per liter and per year); thorough cost analysis and a feasibility study for optimal production plan IFO. Alternative production facilities have been identified, with clear Opex and Capex requirements for scaling production from 4.000 m² to 10.000 m².
- On the commercial development side a market segmentation and analysis was performed, allowing the company to identify new prospects and initiate important commercial partnership with large international companies in the pharmaceutical and feed sector.
- The Intellectual Property strategy was also revisited: analysis of the situation revealed that some patents are not properly registered while others are pending and need further investigations.