Spirit Circuits

Spirit Circuits – Printed Circuit Board Manufacturer

When managing director, Steve Driver was persuaded to attend a Shirlaws' presentation, he and his four fellow directors had hit a point when they just couldn't see how they were going to find the time, or the energy, to grow their business further. Eighteen months later Hampshire-based Spirit Circuits, which manufactures printed circuit boards, has a clear strategy for developing the company, has increased both revenue and profits and the directors have rediscovered their families and a life outside the office.

"I remember listening to the Shirlaws' description of how a business goes through a number of stages. How, as it grows, the people managing the business can get bogged down in so many day-to-day activities, there is never enough time to plan for the future. How the reasons you started the business in the first place - the fun and the enthusiasm and the freedom you had at the outset - get lost in the daily grind of long hours, necessary just to keep the business going.

"I realised it was my story, and that it wasn't unique."

On his return to the office, Steve suggested to his other directors that they bring in a business coach to look at the company, and hit 100 per cent negativity. They thought the business couldn't afford it - Steve's argument was they couldn't afford not to, and he was so insistent that eventually they agreed.

Steve's fellow directors had originally been employees of the company, but, as a result of a management buyout, had joined the management team. As part of Shirlaws' initial fact-finding project within the company, coach Breda Ferarrio interviewed the directors individually and discovered that, despite different titles, they didn't actually have clearly defined roles and responsibilities and were still spending most of their time on everyday issues to do with running the business. As a result no strategic decisions were being made and the company was losing money each month. "There were a number of talented people in the business, but they weren't being used in the right way," explained Breda. "The directors just weren't communicating with each other; they were all working long hours, they were disillusioned and they really didn't want to be there. It really wasn't a great atmosphere for any of the employees."

Steve believes the fact find exercise forced a number of issues to the table that otherwise would not have been aired. The coach provided a safe environment for the directors to be able to discuss the things that concerned them and to be able to express how they felt. "We really hadn't been talking or listening to each other and we were able to be more open and honest in these sessions than we had ever been amongst ourselves."

Following on from this, Breda worked with the directors for one day each month, helping them to look at how the business was positioned in the market, developing a vision and strategy for moving the business forward profitably and then looking at job functions and skills within the business.
Shirlaws' methodology categorises jobs into three types of functions: strategic, operational and administrative and then assesses which members of the team have the right skills to take on the functions and responsibilities for delivering in each area.

This radically changed the structure of the Spirit Circuit management team. One of the directors decided he wanted to be bought out of the business; Steve took on the strategic role for the business and left the financial and operational areas to other directors.

"Eighteen months' on, we are just not the same business," explains Steve. "As directors, we all have our own areas of responsibility and we are also developing skills in the next level down of management - which has dramatically freed up our time, as we no longer all have to discuss every single issue that arises. We have re-focused the business, we all share the same vision, know what we have to achieve and have a plan to get there. And, as a result we are now making a significant profit each month, rather than a loss, and have just celebrated the highest ever monthly sales since the business began."

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