Service: Change Management and Growth
Client: Large Service Company
The company had grown to become a regional leader in its market, but had not been able to grow its business for more than three years. Because of the relatively low barriers to entry, each year several new companies entered the market, making it increasingly difficult to compete. In addition to growing the business, owners were concerned that new federal and state regulations were putting the future of the business at risk, thereby creating a need to expand its capabilities.
We were engaged as the Interim Chief Executive Officer and began our engagement by reviewing the business, its revenue streams, management team, employees, culture, operations and finances before implementing growth and expansion strategies. First, we strengthened the financial management capabilities by bringing in an experienced CFO capable of monitoring and projecting cash flow, updating the budgetary systems and streamlining administrative operations. Then, working from within the existing and projected budgets, we re-allocated funds to support the immediate objective of growing revenue, increasing the customer base and adding business units.
To limit ongoing costs, targeted investments were made that improved the company’s technologies, plant, production capabilities, customer communication and operating systems.
In order to limit the impact of regulations a new business unit was created by expanding on services already provided by the company and by acquiring and integrating a long time sub-contractor into the business.
After twelve months the company had reached new levels of growth, increasing its revenues by 25%, growing its customer base by 25% and adding a new business unit.
At the end of the second year the combined revenues were 65% higher than when the engagement started and the company had purchased property for its new headquarters. When the engagement was completed the leadership of the company went back to the management team that had been in place from the start.Share