Case #1
Design Build Contractor with Growth Issues
Challenge
Niche privately held design/build contractor has growth issues struggling with too much market and not enough company, along with lack of senior team and organizational structure to offload owner responsibilities. Owner wants to consider various growth scenarios and eventual exit strategies.
Role
Fractional COO/Strategic Advisor
Strategy
- Develop strategic plan with ownership and select existing staff
- Implement organizational structure and personnel changes
- Develop and implement new business flow process
- Establish financial controls, forecasting and reporting
- Assist with company operations and mentor senior staff
- Develop company ownership scenarios, select and carry to conclusion
Implementation
Organization
- Developed new organizational structure
- Developed new job descriptions for new positions
- Standardized recruiting, hiring and on-boarding process
- Implemented Project Management team as matrix to functional departments and hired new project managers
- Hired new senior staff (Director of Finance, Director of Production, Director of Client Services, Director of IT, Executive Assistant)
- Implemented Performance Review Process
- Developed and implemented company-wide incentive compensation program
- Mentored staff
Financial
- Worked with new Director of Finance to develop monthly reporting package
- Instituted monthly forecast process
- Developed annual financial and business plans
- Tightened financial controls to be in audit-ready condition
- Established new bank financing
- Developed product profitability analysis
Operations
- Acted as Chief Operating Officer, co-managing company with President/Owner
- Set up standing meeting schedule for operations review and scheduling
- Set up standing meeting schedule for senior staff department reviews
- Conducted quarterly all company presentations to review operations performance
- Worked through new operating system to establish efficient workflow process
- Developed standard project status and scheduling reports
- Oversaw office building renovation and new building construction for expansion
Marketing
- Spearheaded new corporate literature package
- Refined style guide
- Developed new Website
- Managed advertising and community engagement programs
Ownership Trajectories
- Developed multiple business configuration scenarios
- Developed multiple scenarios for future ownership
Results
- Company experienced 75% revenue growth in three (3) years
- Achieved sustainable 15% EBITDA
- Fully functional and scaleable organizational structure
- Company positioned for continued growth
- President/Owner has improved work/life balance
- Positioned company for future ownership scenarios
Case #2
Family Owned Business Transition & Growth
Challenge
Family owned multi-location retail agribusiness needs stability and direction while going through ownership transition to next generation, remedy institutional vulnerabilities, improve operations performance and staff engagement, improve financial performance and reporting and reset growth trajectory through organic improvements and future locations. Retail marketing good but needed further resource to offload senior staff.
Role
Business Advisor
Strategy
- Map out family ownership and operations transition process
- Identify senior management team and next level operations group
- Develop and implement strategic plan with senior and operations teams
- Set and achieve financial and growth targets
- Build senior staff to offload new owners from day to day operations to achieve strategic initiatives
Implementation
Organization
- Instituted cross-functional committee structure to implement strategic plan
- Standardized recruiting, hiring and on-boarding process
- Implemented performance review process
- Refined company-wide incentive compensation program
- Built confidence with previous family ownership to let go
- Identified and remedy areas of institutional vulnerability
- Identified high performing staff for future management positions
- Weeded out under performing employees
- Cultivated customer service and team oriented business culture
- Added new Finance Director, Marketing Director and business office personnel to offload new ownership
- Improved salary structure
- Mentored new owners
Financial
- Developed annual plan(s)
- Defined new financial and business reporting
- Set and achieved growth and financial performance targets
- Bank financing for several facilities initiatives
Operations
- Instituted and joined regular senior management committee meetings
- Instituted regular operations team meetings
- Instituted regular plan implementation committee meetings
- Transitioned to new POS operating system
- Improved labor utilization through new scheduling program
- Developed new inventory storage site as hedge for leased property
- Renovation project for flagship store
- Developed business plan for additional store operation
Results
- CAGR of 6%
- EBITDA increased 300% in first year
- Family transition complete