Organic Growth
at Avery Dennison

"Success stories like the Ohio pilot project not only broke down the barriers between the departments at Avery Dennison, they also showed the rest of the company that it was possible to gain growth almost immediately."

Ram Charan, in his book Profitable Growth is Everyone's Business, describing Rapid-Results work applied to achieve $130mm in profitable growth within one year at Avery Dennison.

The leadership team in Avery Dennison was looking to accelerate growth, now, while building the foundation for continued expansion. Using the Rapid-Results Approach, they were able to add $50 million in the first year of the program, and they achieved $150 million impact in the second year.

The Challenge

In 2001 and 2002, the adhesives films, and office products manufacturer, Avery Dennison, was growing, but CEO Phil Neal and his leadership team were not satisfied with the pace. Although growth was a major corporate goal, the company had increased its revenues by only 8% in two years. In August 2002, Neal and President Dean Scarborough asked us to introduce the Rapid-Results Approach as a way to quickly act on growth opportunities that could be turned into real growth within 3-6 months.

How Schaffer Consulting Helped

Within weeks, we helped launch 15 Rapid-Results teams in three North American divisions. One was charged with securing one new order for an enhanced product, refined in collaboration with a large customer, within 100 days. Another focused on penetrating three new retail chains so it could use that experience to move into new distribution channels. A third aimed to book several hundred thousand dollars in sales in 100 days by providing—through collaboration with a dozen other suppliers—all the parts needed by a major customer.

By December, it had become clear that these growth initiatives were producing results, and the management team extended the process throughout the company. Dozens of teams, involving hundreds of people, started working on Rapid-Results Initiatives. Two years later, Rapid-Results Initiatives continue to fuel organic growth in the company.

The Impact

The 15 pilot growth initiatives had delivered almost $15 million in annualized incremental revenue. After expanding the program through all major divisions and around the world, the program delivered over $50 million in incremental revenue in the first year.

In 2004, Rapid-Results Initiatives delivered over $150 million in organic growth for the company. The effort continues, driven by internal resources we trained to support the approach. Ron Charan described Avery's winning strategy of focusing on "singles" and "doubles" in his book Profitable Growth is Everyone's Business.

Contact us at rapid-results@rhsa.com to learn more.