MANUFACTURING
Case Study #
A small manufacturer of supervisory alarm and data acquisition
(SCDA) has the opportunity to improve financial position through
significant investment from a Fortune 500 company. The manufacturer
requires business metrics and key performance indicators that
will drive success while staying safely within the sustainable
growth ratio (SGR) as demanded by the terms of the investment
agreement. Within 180 days sales were improved by over 200%,
margins improved by more than 50%. The investment was secured.
Case Study #
A foreign telecom manufacturer wants to release an IPO on
NASDAQ within approximately one year. A U.S. presence is established
as an operational base for exploring additional market potential
pre-IPO and to expand global sales and service foot hold.
The industry issues surrounding an IPO for foreign based operations
are benchmarked. Specific goals and objectives are laid out
as milestones. These milestones become early warning signs
of obstacles to success. The IPO was aborted saving an estimated
75% of the equity value of the company over the next 3 months.
Case Study #
A $100 Million manufacturer needs usable metrics to improve
performance and support reporting requirements to stakeholders.
A software-enabled benchmarking process is utilized allowing
the company to enter financial data, perform what-if scenarios,
and produce reports that compare operating results against
industry averages. Actionable items for improvement are identified
and quantified. Working on margins as thin as 8% or less,
every found dollar in improved performance is critical to
the business’ sustained growth. This company returns
to status as one of the top growth companies in the region.
Case Study #
A global manufacturer of communications devices plans to
increase sales in the U.S. marketplace otherwise dominated
by a single competitor. A comprehensive customer relationship
management program is created to penetrate critical corporate
accounts and leverage technology and time to market advantages
of a new product introduction. Sales and customer training
processes are created, a company-wide business development
program is implemented, and operating metrics are applied.
Long term strategic customers are secured resulting in $60
Million in annual sales and 50% market share for the company.
Case Study #
A Fortune 500 manufacturer of personal communications devices
wants to increase sales, profitability, and market share.
No distribution strategy exists for small and medium sized
customers. An indirect distribution strategy is created to
penetrate under-served market segments, a support team is
assembled, and distribution partners are selected based on
strategic objectives, marketplace positioning, and customer
service capability. Distribution agreements are executed utilizing
bi-lateral performance metrics as well as role and responsibility
descriptions. Product sales through indirect distribution
channels double from $375 Million to $750 Million within the
targeted segment.
Case Study #
A Fortune 500 manufacturer of network equipment experiences
consecutive years of declining sales and profitability while
a smaller U.S. competitor enjoys superior sales, customer
service, and market share performance. To serve customer equipment
utilization requirements and improve capital expenditure efficiency,
a strategic product development relationship is forged with
the leading competitor. Additionally, collaboration with a
highly successful intra-company manufacturing and distribution
division is established to provide higher levels of support
to a common customer base. Business metrics are applied to
the business including sales performance, customer satisfaction
and program management. Customer satisfaction, time to market,
and sales profitability improve. 110% of Business Plan Objective
is achieved in the first year following change management
initiatives; share of wallet is increased with all critical
customer accounts.
Case Study #
The owners of a privately held manufacturer of industrial
products recognize that sustainable growth for the organization
will require an injection of both financial and intellectual
capital. Upon consideration of strategic alternatives, an
intermediary is selected to market the business and liquidate
portions of the management position in the company. Private
equity firms are identified whose investment criteria match
the dynamics of the business, indications of interest are
prepared providing both the capital and senior executive infusion
the client desired. A sale is consummated, new equity is available
to support corporate growth, and the management team is enhanced,
all to the benefit of shareholders.
Case Study #
A European manufacturer of consumer electronics products
plans to establish sales and manufacturing operations in the
Americas. Directors of sales operations are selected for major
product categories, essential support services from the parent
company are leveraged and regionalized contract manufacturing
and distribution relationships are established in the U.S.
and Latin America. Target markets are defined, products are
re-designed for regional marketability, and distribution partners
are secured. $20 Million in first year sales are achieved.
Case Study #
A publicly traded company supported financially by convertible
debenture facilities requires incremental capital to fund
both ongoing operations and strategic re-design of the company.
Corporate and financial documents reflecting revised business
projections based on new strategy for profitability and growth
in shareholder value are created. A PR/IR firm is selected;
a national road show program is implemented beginning in Chicago,
New York and Los Angeles.
DISTRIBUTION
Case Study #
A publicly traded company owns multiple business units in
product distribution and technical services sectors, only
one of which generates operating income. Leveraging latent
core competency and differentiating technologies while rationalizing
under-performing operations, a performance measurement system
and an outsourced manufacturing strategy for higher gross
margins and increased product distribution are created and
implemented resulting in dramatic sales improvement and a
$10 Million increase in operating income.
Case Study #
A small independent dealer offering sales and service within
the communications industry is challenged to improve volume
and margins or risk losing product line. A new sales training
and management program is developed resulting in top ten national
status of dealers for the line. This system is installed at
five other independent dealers for the manufacturer, four
of the six dealers are named to the top ten list of dealers
nationwide the following year (dealers who had the largest
increase in sales and net profit year over year, ranked by
comparison with dealers nationally). The manufacturer improves
ranking to number two position nationally as a direct result
of the performance improvement of these dealers.
Case Study #
A small food service distributor and service organization
needs to convince its prime vendor that the distributor is
capturing the lion’s share of the profitable business
in the marketplace. Business metrics are reviewed and agreed
upon between the principal and the distributor. Market research
is conducted to validate the requirements of the distribution
agreement. Utilizing business metrics within daily operations,
the distributor not only secures the product line but achieves
additional margin opportunity within the contract by substantiating
a focus on PROFITABLE business. The business metrics are adopted
by the principal for all distributors nationally.
Case Study #
A distributor of packaging equipment and supplies needs
to improve profitability and volume in order to secure a new
product line that will soon be available. The distributor
is at best in the number five position of 10 similar businesses
in the marketplace. The task at hand is to find key performance
indicators (KPIs) and utilize them to grow revenues and profitably,
and manage sustainable growth ratio (SGR) indicators so avoid
additional equity or debt capitalization requirements. The
distributor triples sales volumes, improves profitability,
and leverages vendor terms and conditions to improve cash
flow to maintain his SGR.
SERVICE
Case Study #
A regional network operator and communications service provider,
the recent acquisition of a privately held nationwide operating
company, requires integration and performance improvement
to leverage assets and customer base. Sales, administrative,
billing, and technical operations capabilities are optimized,
new IT systems are implemented, and new service offerings
are introduced to increase sales productivity and support
customer growth. Business metrics and performance accountability
measures are applied. Sustainable recurring revenue growth
is achieved, operating costs are reduced, and the cash flow
improvements in excess of 20% flow through to the bottom line.
Case Study #
An international investment group plans to deploy a new
technology solution for telecommunications in an emerging
country. A consulting firm had provided a business case supporting
the viability of the investment. Recommendations lead the
group to revisit the assumptions of the previously supplied
business case. The primary business driver supporting the
investment was identified by solid market research and analysis.
Reviews of current domestic law found it would be impossible
to take advantage of the business driver in the target market
space. The situation was discussed with governing bodies resulting
in changes to domestic law. The investors could now take advantage
of global economies of scale. Investors proceeded with a revised
business plan, based on executable business drivers. A $20
Million investment was made in a business model supported
by two of the worlds leading solution providers.
Case Study #
A privately held network operator and service provider envisions
a national footprint for high-value, low-cost personal communications
services for business and consumer customers in second and
third-tier markets. With venture capital and bank financing
support, a core management team is formed, an aggressive acquisition
roll-up strategy is executed, and highly effective organic
sales growth plans are implemented. Recurring revenues and
cash flows grow by over 200%, new customer activations exceed
industry averages, and a successful Initial Public Offering
is launched.
Case Study #
A regional accounting firm requires a way to improve the
service offering and better manage relationships with clients.
A benchmarking and operating metric software tool is demonstrated,
adopted and supported by training resources. The firm now
provides value added reporting metrics to their clients across
the entire dash board of small business issues, including
ROAI, SGR, NPG, and Valuation. The firm has found new sources
of revenue and enhanced relationships with the client.
RETAIL
Case Study #
A top ten computer retailer is looking to capture the success
factors of two of its retail outlets and apply that success
to 14 other outlets. Careful research and benchmarking define
the success process; a pilot program confirms the finding
and new policies and procedures supported by corporate wide
training improve the performance ratios at all remaining outlets.
The retailer moves up the top ten list of outlets in the category
two rungs within 90 days of the training program conclusion
delivering a 30% increase in net margin.
Case Study #
A top ten art retailer wants to sell the business to a Fortune
500 investor. The investor wants proof that the business is
sustainable beyond the influence of the entrepreneurs who
created it and maintained it. Focus on the key performance
indicators for growth and success lead to the development
of an algorithm for stocking the retail stores that reduces
inventory SKUs by 45% and increases sales by 30% with an improved
margin increase of 12%. Other business policies for stocking,
display, sales procedures, store personnel training, selection
and scheduling are carefully documented and then piloted beyond
the entrepreneur’s involvement. Focus groups and market
research identify Leading Performance Indicators (LPI) suggest
store re-naming and category up scaling will improve profitability.
Investors reduce the anticipated time between LOI and acquisition
and close the deal at a premium based on profit margin increases
of 34%
Case Study #
A regional provider of a high-value, low-cost communications
service in B-to-B segment wants to grow revenues and penetrate
new market segments. A comprehensive distribution strategy
is designed that establishes both direct and indirect channels,
utilizes strategic relationships with other service providers
to expand product offering, and increases measurable penetration
in both business and consumer market segments. Sales teams
are created to serve distinct market segments and retail presence
is established in multiple markets to support both business
and consumer customers. Recurring revenues increase by over
200%.
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