Family-owned company beginning transition from father to the next generation. The company was under-performing with narrow margins, high level of client-impacting errors, and stagnant growth.
Primary operations IT system was not designed well for any of the roles in the firm to be logical or help Client Service Reps lead conversations with clients.
Sales team was compensated on revenue generated, not on profit of the deals they won.
Culture did not hold workers accountable for the quality of their work.
Evaluation of deal economics was ad hoc with no consideration for fully-loaded costs to deliver the project.
Several long-serving senior executives refused to follow the new strategic direction of the firm.
Redesigned IT system to provide information with customized views by role, including a layout that facilitated Client Service Reps’ discussions with clients.
Changed Sales commission model to provide greater incentives to sell high margin, larger projects which increased motivation for high performing Sales Reps and caused lower performing Sales Reps to leave.
Implemented new management practices, reports and employee evaluation process to increase visibility about worker performance and increased individual performance and managers’ ability to manage their teams.
Established a minimum order quantity and margin to ensure every project was profitable when executed effectively.
Brought in bright new talent who were more aligned with strategic changes to address significant executive turnover.
Productivity increased dramatically while revenue more than doubled, margins grew 60%, and headcount increased only by a third.
Current and new customer relationships increased in quantity, average revenue size and profitability.
Morale improved as poor performing employees were removed and higher performing employees were rewarded with better compensation.
Company sold for a price more than 300% above the valuation from the beginning of our engagement.