A. Business Model:

Consulting domain with the following main features:

SBU - A: Management consulting in the enterprises that are

a) looking to improve on profitability by b) a1)scaling up either sales revenue; henceforth known as top line growth or c) a2) by scaling up margins; henceforth known as bottom line growth d) in domains of A) Food and allied agro-based processing industries inclusive of the

sugar industry, B) Plantations and other allied farming activities, C) Steel and steel product manufacturing, D) Chemical process industries for cosmetics, shoe polish, soaps and other allied products in the FMCG sector, E) Packaging industries, F) Textile based companies, G) Heavy engineering and tooling industry, H) Paints and allied chemical industries, I) Tiles manufacturing industry, J) Renewable energy sector, K) Gas plants through the following initiatives:

1) Process Re-engineering that includes the scope of changing the dynamics of machine maintenance, processes and improvements in operative practices to get higher productivity, yield and above all the fundamental quality of the product at a higher threshold.

2) Also, working on the energy re-engineering objectives of electro-mechanical alignment of machines and processes to enable the shop floor team to be on a predictive mode for breakdowns, energy surges and extended life of critical components in the machinery.

3) Bringing in innovations in the processes and in the products to radically cut down on the costs of manufacturing thereby rendering the operations highly profitable.

4) Factoring the innovations in the process in the quality fundamentals of the product profile to enable pricing equilibrium at higher points of leverage in this brand equity initiative.

5) Enabling a value chain in the realm of training to manifest in the organization over a period of time to bring in sustainable growth.

6) Mentoring the senior management staff to learn the advanced mechanisms of aligning the lead indicators in the business process to the fundamental change management process so that the organization can grow into world class levels in five years time.

Creating the turnaround algorithm

7) Establishing the symbiotic relationship between the different stakeholders through a comprehensive HR strategy that brings in quantitative measures of management performance and reflect them in the Balanced Score Card model wherein the elements of the vision and the mission of any organization are adequately factored in.

SBU- B: Econometric forecasting using advanced statistical and data analytics for facilitating the process of a) business decision making across sectors of vital importance to the Kenyan economy, b) the investment decisions and risk assessment for the bankers, PE – private equity investors and fund managers, the government agencies involved in policy making and the private-public interface organizations like the KAM – Kenya Association of Manufacturers for understanding the dynamics of change in a mathematical milieu wherein decision making becomes formally objective to a greater extent of accuracy through the following initiatives:

1) Mining multiple data in the economy for different sectors at the micro level.

2) Mining big data in the macro-economic realm.

3) Extensive usage of advanced statistical techniques in linking the macro data with the micro-elements and finding stochastic relationships to enable predictions in overlaps and specifics of executive interests.

4) Feeding the statistical inferences to the Kenyan stakeholders on a regular basis (perhaps as regularly as on a monthly basis) in the form of comprehensive booklets for collective gains and informed decision making.

5) Regularly matching the predictions with the actual occurrences of events and trends to test the robustness of the system and the reliability of the syndicated research reports.

6) Establishing the vital network of business intelligence through these syndicated research reports for the entire Kenyan economy.

Creating the turnaround algorithm

7) Promoting growth through optimized investment and sustainable decisions in various sectors of the economy while leveraging on the advanced business intelligence of the system being created by the company.

SBU-C: Defunct companies or those companies that have been declared as NPA – non-performing assets in the banking terminology as also those that are in the verge of closure shall be taken over by this company on a leased model shaped along the following lines:

1. The entire financial liability and the market value of the assets shall be apportioned to the lease value.

2. The lease amount shall be spread over the tenure of thirty six months to sixty months depending on the size of the liability.

3. The operations shall be taken over by the company in the capacity of the receiver manager while collaborating with the Board of the company and the consortium of lenders.

4. The execution of the business process shall be done along the lines enumerated in Feature-A above.

5. The end of the tenure should see the liquidation of all outstanding debt and liabilities in an organic way.

6. Along the way, the site company shall be into the profitability mode through sheer diligence on the business process and the innovations cycles.

7. The management teams as well as the shop floor teams shall be dwelling in a higher realm of competence and skills thereby adding value to the most important asset of a business – the peoples’ processes.

Creating the turnaround algorithm

B. Constitution of the company:

1. The Board of Directors’ shall be constituted within the FY-2014-15 so that the effective functioning can begin from the onset of the FY 2015-16.

2. The Board shall have two layers: the visionary level and the executive level respectively.

3. Functionally, the executive level shall be reporting to the visionary level of the Board and shall be responsible for the profit and loss accountability and the growth trajectory in general.

4. The Board shall be headed by a Chairperson who shall be nominated from the business ecosystem within Kenya and who should be a doyen in the field of business management and a recognized icon as a thought leader.

5. The Chairperson shall be vested with the responsibilities of formulating a coherent vision along with the other board members and should take a lead role in steering the organization into new “thought heights” and top of the shelf strategic initiatives to make a strong difference in the field of management thought and more importantly in the lives of the Kenyans through the implementation of cutting edge management solutions for Kenyan businesses.

6. There shall be a team of eight board members in the visionary level drawn in; two each from the academia, two from the successful industry captains, two more from the banking and financial institutions and finally two drawn in from the government bodies. There shall additionally be strategic growth partners drawn from clientele, banking institutions and knowledge captains in the relevant sectors who would participate in the board meetings, provide insights as also share profits by providing businesses and mentorship to the management staff.

7. The executive level of the Board shall be constituted with one Executive Director and CEO – the lead partner in the company – Debashish Banerjee and two Executive Directors and CMO – Chief Marketing Officers who would also partner in the

Creating the turnaround algorithm

company as minority stake holders. Strategic and administrative powers in operating the company shall be vested with the executive board while the visionary level shall have the veto powers to derail management decisions that are thought to be in contrary to the principles of business acumen and pursued pathways of thought leadership.

8. The Board members shall be meeting once towards the beginning of each quarter to review the progress of the previous quarter and announce the financial and strategic

results of the initiatives. The Board shall deliberate and recommend on-course corrective measures wherever required and also on the consolidation of the successful moves and directions. Each deliberation of the Board shall be an exercise in intellectual stimulation to bring in the best of thought streams into practice; the company being positioned as a knowledge champion right from the inception.

9. The board members of the visionary level shall be on a substantive honorarium and shall be entitled to quarterly dividends of the company worked on the formula of 75% - retained equity and 25% on dividend payout on a quarter-in and quarter-out mode.

10. The management structure would be in essence a three layered one; the top layer being formed the strategic business heads – each SBU being headed by one followed by section – heads for each business segment.

11. Finally, the team of associates in the field of engineering, econometrics and management who would be working in teams to realize the objective goals of each unit under the purview of the consulting company.

Creating the turnaround algorithm

C. Pricing and compensation structure of the services in SBU-A and SBU-C

1. The manufacturing and business units coming in the purview of the consulting company shall be classified into the SME, medium and the large units.

2. The gamut of variables included in the business transformation model is detailed separately in the spreadsheet and is self-explanatory in essence.

3. The performance delivery is spread over twelve quarters with progressively graded benchmarks in each of the operating parameters of a given business

4. (please refer to the spreadsheet for the details of the mechanism in which the model shall work).

5. The performance reviews shall be against the benchmarks against the empirical levels. The quarter wise graded appraisal system shall ensure value for money for the clientele. There would be weights attached to performance and effort as also on the discounting factor – a factor that would summarize the business sentiment numerically; taking into account the business intelligence provided by SBU-B as also by the business owners’ sentiments.

6. The quarterly increments for the consulting company shall be derived from the consolidated appraisal systems and the dividends shall also accrue from the same for each sector and the combined business aggregation.

7. The associates shall be getting their increments on a quarterly basis as a function of the units owned by them while the section heads shall be getting theirs from the consolidation of the cluster owned by each of them. Similarly, the SBU head shall get the aggregation of the business unit headed by them.

Creating the turnaround algorithm

8. The executive and the visionary levels of the board shall be entitled to the aggregation of the increments on a weighted average model each quarter for all the SBUs put together.

D. Talent constitution of the company

1. The associates would be drawn in from the best of the universities of Kenya in the field of engineering, management sciences and the schools of mathematics, economics and creativity.

2. The associates would necessarily be outstanding academic scholars in their chosen fields of pursuits and could possibly be drawn in from the pool of post-graduates and doctorates; this being a knowledge company.

3. The section heads should be similarly qualified with typically 4-5 years experience in the relevant sector post-qualifications.

4. The experiences in publishing papers of value in the international conferences in the related fields shall be of higher weights during the selection of the section and SBU heads.

5. The aggregation of knowledge at the disposal of the company shall far outweigh the availability in the market – that shall be the single most differentiating factor for the company.

6. The knowledge base of the company shall be almost exclusively from the local Kenyan content. There would be no reliance on expatriate talent while recruiting.

Creating the turnaround algorithm

7. Expatriates with proven expertise can only be functional as strategic knowledge partners in the periphery of the constitution of the board. These knowledge partners would be mentoring the associates and the professional teams of the relevant sectors and help formulate the strategic direction and vision with the board.

E. Career planning strategy of the company

1. The appraisal systems for the consulting group as also for the associates and the team of professionals working together on a project are comprehensive and quantitative driven.

2. The growth trajectory of the company as also for the professionals shall be self-explanatory and subject to rigorous reviews each quarter thereby eliminating subjectivity altogether.

3. The compensation benefits are linked directly to the financial derivatives of the company and cannot be on a subjective domain at any given point of time.

4. There would be rewards in terms of both compensation and positions within the company after four successful quarters of performances.

5. All the inductees onto the company shall look forward to living an enduring vision riding on high level of engagement in training and development and mentoring for slip ups in performance indices. Each inductee shall go through a rigorous recruitment process and

6. hence shall be an investment for a 25-year corporate plan as part of the career growth and aspirations.

The organization is founded to transform lives through the excellence in businesses; in effect the common aspirations revolve around leveraging knowledge for the common weal.

Creating the turnaround algorithm