Proactive Turnaround Management
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Proactive Turnaround Management Proactive Turnaround Management Presentation Transcript

  • WWW bizedgegroup.com Proactive Turnaround™ M a n a g e m e n t © Copyright 2009 Business Edge International, LLC all rights reserved. 1 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565
  • WWW Our Brand Statement The Go-To Company for bizedgegroup.com Business Reinvention. The Best Business & Executive Coaching. Period TM © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 2
  • The Business we are in Business Edge International provides critical conversation, distinctions, tools, leadership models and practices that allow business leaders access to creating a fulfilling impossible future, now. We are in the business of listening for and reliably delivering that which makes a measurable difference in what business leaders are dealing with and what they really care about. We are doing so through the following business propositions: 1. High Impact Business & Executive Coaching™ 2. Business Reinvention 3. Proactive Turnaround Management™ 4. Executive Advisory Board 5. Interim Management Services © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 3
  • Our Clients •Bank One •HAP- Health Alliance Plan •People's Auto Choice •BestInService.com •Harvard Resources •Power Stream •Berisha & Associates •Help My Team.Com •Quinco Tools Inc. •Breakthrough Resources •Henderson Financial Assoc. •Rose City Industries •Center for Wealth Mgmt •Humax Corporation •Sterling Commerce •Century 21 Town & Country •I.D.S Corp •Softura, Inc. •Clean Team Incorporated •IMT Studios •Ripinski Real Estate •Continental Automotive •Ingersoll Rand •Rose City Industries •Connect Inc •IPS Ltd •Rosewood Family Solutions •Credant Inc •JSC Consulting •RSL Ltd. •DMC- Detroit Medical Center •Johnson Control Automotive •Family Justice Center •DMB Group •JP Morgan /Chase •The Inspired Box •EDS •Karcher Financial Services •The Rockmore Group •Epilepsy Foundation of Mich. •Michigan National Bank •TransTech Inc. •Doshi & Associates •MSX International •UGS •Dynasty Funding •MYCO Enterprise •Vision IT •Ford Motor Company •Nationwide Insurance •West Pole Technologies •G. Long & Associates •National Australian Bank •XilliX Corporation © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 4
  • What makes us different? 1. What we do really works 2. Our principles are tested and highly effective 3. We are partners, not advisors – our skin is in the game! 4. We have great compassion for what it takes to be a leader 5. We listen 6. We talk straight 7. You can rely on our integrity 8. We don't shy away from tough, challenging work 9. We discover leadership talent everywhere 10. We love our work © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 5
  • Model Overview © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 6
  • The business case Historically, when we ask a business owner or corporate executive the question; “What do you think the problem is?” they often answer: “We have a problem with ….” as if they identify the source of the real problem. We have learned that more often than not, they are actually describe the symptom and not the root cause. If you address and treat the symptoms alone, it will keep coming back again and again over time. Our Proactive Turnaround™ model operates with the assertion that there is a root cause for every symptom (a problem) and finding it is 80% of the solution. If you treat the root cause (source of the problem) the symptoms will not keep re-occurring and your Organizational Health i.e. higher performance becomes permanent. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 7
  • Traditional Turnaround Traditional Turnaround is a process that focuses on restructuring the balance sheet and shedding debt to improve the cash flow of the company. It focuses primarily on financial indicators to determine a course of action which relates to the company’s debt to assets ratio as a viability matrix and not Healthy Organization’s Operating Habits™. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 8
  • Traditional Turnaround Symptoms Financial Breakdown Low E.B.I.T No Sales Customer Retention Operational Breakdowns Service Issues Customer Complaints Communication Problems High Turnover Delivery Breakdowns Slow Production Credibility Issues Loss of Productivity Root Cause Traditional What is the cause of the Turnaround symptoms? Temporary Impact © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 9
  • Proactive Turnaround Proactive Turnaround™ is a process that focuses on improving the profitability and operating performance of a company. Throughout the process, there is an emphasis on changing the Management and Leadership Operating Habits™ so that the implemented plans and improvements become permanent. [The way a company (wins) operates is based on a collection of Management and Leadership Operating Habits™. There are habitual ways in which the organization is operating - habitual ways management is thinking and acting - habitual ways that management is listening and speaking to their employees, customers and stakeholders. ] A critical change in management culture and Operating Habits™ will take place during the process. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 10
  • Operating Habits Define Habit - dictionary definitions: • manner of conducting oneself • the prevailing disposition or character of a person's thoughts and feelings: mental makeup • a settled tendency or usual manner of behavior <her habit of taking a morning walk> • a: a behavior pattern acquired by frequent repetition or physiologic exposure that shows itself in regularity or increased facility of performance b: an acquired mode of behavior that has become nearly or completely involuntary <got up early from force of habit> © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 11
  • Proactive Turnaround Symptoms Financial Breakdown Low E.B.I.T No Sales Customer Retention Operational Breakdowns Service Issues Customer Complaints Communication Problems High Turnover Delivery Breakdowns Slow Production Credibility Issues Loss of Productivity Root Cause What is the cause of the Proactive symptoms? Turnaround™ Management Operating Habits™ New and Changed Operating Habits™ Business Transformation © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 12
  • The framework Proactive Turnaround™ impacts and addresses the 1. Business Model (10) most critical factors in 10. 2. Strategy organizational and business Customers success. The process focuses on 9. Finance 3. improving the Leadership profitability, operating Rock Solid Business performance and the overall health of the company. 8. 4. People & Operations Culture 5. Products 7. Sales & Services 6. Marketing © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 13
  • Ineffective Operating Habits Poor cash flow management Emotional decision process Poor or no communication Hope Reactionary decisions Denial Do not want to know… Ignorance Internally focused leadership Being right or “righteous” Resistance to change Lack of accountability Management by fear We’ve always done it that way… We’ve tried that before… Whose fault is it? etc.. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 14
  • The (7) Seven States Process Proactive Turnaround Business Reinvention Traditional Customer Turnaround Business/ Organization Performance X-Ray Financial Supplier/ Analysis Vendors Employees Management Success Built to Business Probability Control Prevent Restore Accelerator Rating Last Engagement Business Partners Board Members Market Analysis Exit Stakeholders Business Exit Transaction CPR Voluntary Input Liquidation or Exit State #1 State #2 State #3 State #4 State #5 State #6 State #7 Discovery Analysis Control Prevention Restoration Reinvention Fulfillment Operating Habits Paradigm™ – High Impact Management Coaching © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 15
  • State One - Discovery This is the first state in the process and one of the most important, we will collect all of the relevant data and conduct a comprehensive analysis of the current viability and health of the business. Customer The activities will include: Business/ Organization Performance X-Ray Financial Supplier/ Analysis Vendors Organization Performance X-Ray: Employees (Include the 10 most critical Key Performance Indicators) Comprehensive financial analysis – (Current and future) Management X-Ray Summary Complete market analysis includes: - (Current and future) Report Company positioning Business Partners Competitive analysis Board Members Service level and customer satisfaction review Market Analysis Brand management evaluation Stakeholders Marketing department evaluation Input Sales department evaluation © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 16
  • State Two (2) - Analysis This is the most critical state in the process. In this state we will review all of the information, findings and summaries to determine the Success Probability Rating – SPR to Success determine if to proceed with a proactive turnaround or to Probability move with a Voluntary Liquidation. Rating The activities will include: Complete review of the Discovery State ? Conduct a strategy session Complete a Probability Rating analysis Voluntary Complete an immediate action plan 30-60-90 days Liquidation or Exit © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 17
  • State Three (3) - Control The activities will include: Cash management. Projection of income and collections with time. Prioritize cash outflow – critical expenses: Control (payroll, payroll taxes, benefits, insurance, leases, utilities, bank payments, CODs.) Prioritize unsecured creditors & suppliers: category 1, 2, and 3. Implement cash management control to keep the critical outflows covered, with the residual available for partial distribution to the unsecured. Cash management must be forward looking – 4, 8, 12 weeks. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 18
  • State Four (4) - Prevention The activities will include: Product line profitability evaluation Product pricing evaluation Customer profitability analysis Inventory analysis Cost reduction identification Prevention Direct cost evaluation SG&A cost evaluation Financial structure evaluation Refinancing options identification Establish metrics to track implementation Evaluate and change management reporting system © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 19
  • State Five (5) - Restoration The activities will include: Debt restructuring and refinance Implement plans for product line rationalization Implement change in pricing and bid practices Implement all cost reduction programs Restoration Implement short/long term improvement programs Establish metrics to track implementation Establish management operating budget © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 20
  • State Six (6) - Reinvention After restoration of the company’s vital signs, it is now becomes critical to determine the future direction of the company. Determination may be done based on any of the following factors: Built to Grow ? Owner(s) Stakeholder(s) preferences Financial viability and capabilities Access to expansion capital Or Valid market data Business lifecycle More… Exit ? © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 21
  • State Seven (7) - Fulfillment Identify the strategic objectives Create and agree on 3-5-10 year financial goals Complete a strategic business plan framework Define the project/engagement scope and size Business Agree on a fulfillment and delivery format Accelerator Program Agree on a budget and timeline Or List the company for sale Complete a potential buyer profile Complete a certified business evaluation Complete a possible term sheet Exit Create a sales promotion campaign Transaction Align and agree on deal financial structure © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 22
  • Operating Habits Workout™ Parallel to working on the immediate financial and operational issues, Business Edge senior executive coaching staff will conduct an Operating Habits Workout™ with the company’s management team and other individuals that are critical to the future success of the company. The process includes a quick and effective overview of state 1 to 4 in the corporate reinvention model: Built to Business Accelerator Operating Source Corporate Last Management Engagement Habits Document Strategy Realignment Workout Design Review •Discover •Reason for Existence •New Operating Habits •Brand Design Exit •Retire •Redefine your business •Management Constitution •Biz Model Design Exit Transaction •Reinvent •Brand Statement •Leadership Accountability •Market Positioning •Organizing Values Statement •P/S Realignment •Operating Principles •Cultural Design Platform •Balanced Scorecard • Vision(Context) •Transparency Model •R&D Model •BHAG 5-10Y •Talent Development •Focus 1-2Y Model © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 23
  • WWW bizedgegroup.com Case Studies © Copyright 2009 Business Edge International, LLC all rights reserved. 24 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565
  • Case Study Commercial & Industrial Electrical Co - Toledo, Ohio. CS No. 080906 ■ Senior Project Advisor: David W. Martyn 01 Engagement Profile ____________________________________________________________ A $50 million, minority owned, commercial and industrial electrical contractor had been reporting $2 million in net losses for several years. The owner had focused on growing the company’s top line revenue but was not paying attention to the net income of the corporation. The company needed a new business strategy to allow it to become profitable and a new capital structure to be able to cash flow its existence. The company suffered from poor employee morale and a declining reputation in the industry. The company was faced with: • An imminent bankruptcy filing. • The company’s bank had called its $10.5 million line of credit. • The company was virtually out of operating cash. • Loss of key management personnel. The Predictable Future: - The company was within weeks of going out of business and having its assets auctioned. THE BREAKTHROUGH TARGET______________________________________________________ 1. Secure operating cash for the short term. 2. Identify actions needed to improve profitability in the short and long term. 3. Establish a business strategy to allow the company to recover from its near disaster and begin growing profitable sales for the future. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 25
  • Case Study Commercial & Industrial Electrical Co - Toledo, Ohio. CS No. 080906 ■ Senior Project Advisor: David W. Martyn 02 ACTIONS TAKEN__________________________________________________________________ 1. Negotiated a standstill with the company’s bank to have access to operating cash from its line of credit. 2. Implemented immediate cash and supplier management. 3. Implemented immediate cost cutting, shutting down 2 of 5 offices that were not generating enough cash to cover their operating cost. 4. Retargeted the marketing efforts to bid only on projects that were profitable or that paid a premium for minority owned company participation. 5. Modified the bidding practices to win only profitable projects. 6. Sought an equity partner willing to invest new capital into the business. THE RESULTS ____________________________________________________________________ 1. The company’s financial performance improved from a $2 million net loss to a $1 million net profit in 12 months. 2. Located an investor to inject new capital into the company while maintaining its minority owed status. 3. Structured a sale of assets to the new investor by putting the company into a voluntary receivership. This allowed the assets to be sold while setting the stage for a negotiated settlement with the unsecured creditors. 4. Negotiated an agreement with the company’s bank to have the bank finance the purchase of assets by the new investor. 5. Developed a business plan to allow “profitable” growth at 20% per year. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 26
  • Case Study Hazardous Waste Treatment. Detroit, Michigan. CS No. 08092 ■ Senior Project Advisor: David W. Martyn 01 Engagement Profile ________________________________________________________________ A $250 million environmental company had a $15 million division that treated inorganic hazardous waste in a RICRA licensed facility. The division suffered from flat sales, poor facility conditions, a difficult, manual paperwork tracking system required by federal regulations, and mediocre operating income of $600,000/year. The division was faced with: 1. Inability to grow sales. 2. Low profitability 3. Capital investment was needed to upgrade the facilities to keep up with tightening regulations 4. Capacity was bottlenecked by the manual tracking system for handling hazardous waste treatment. The Predictable Future: - The division would be shutdown or sold off. A shutdown would require $5 million in environmental remediation and closure costs for a facility that was handling hazardous waste. THE BREAKTHROUGH TARGET______________________________________________________ 1. The breakthrough targets were as follows: 2. Identify actions needed to grow sales. 3. Identify actions needed to improve profitability. 4. Determine whether the business could generate sufficient cash flow to pay for the needed upgrades. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 27
  • Case Study Hazardous Waste Treatment. Detroit, Michigan. CS No. 08092 ■ Senior Project Advisor: David W. Martyn 02 ACTIONS TAKEN__________________________________________________________________ 1. Identified the key decision making criteria that customers were using in deciding which treatment facility to use. 2. Implemented an electronic tracking system to track each step in the approval process for waste acceptance from customers. The goal was to reduce the time between the receipt of a customer’s waste sample and the issuing of a permit to allow shipment to the treatment facility. 3. Implemented an electronic tracking system to track each step in the treatment process from waste shipment receipt to final disposition. The goal was to eliminate the paperwork constraints on production capacity. 4. Implemented improvements in communications between the different departments and functions in the business to streamline all business processes. THE RESULTS ____________________________________________________________________ 1. Response time to customer requests to ship waste was reduced from the industry average of 6 weeks down to 2 weeks. 2. The faster response time was the key factor in winning customer orders. 3. Improvement in winning customer orders allowed pricing to be increased without a loss of orders. 4. Elimination of the paperwork tracking constraints increased plant capacity by 30%. 5. Increased capacity, higher pricing, and growth in the percentage of customer orders won increased the operating income of the division from $600,000 to $3.5 million in three years. 6. Sales began to grow at a rate of 15% per year. 7. The division was able to generate sufficient cash flow to finance the upgrades required to stay in business as a healthy, growing business. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 28
  • Case Study Fortune 500 Food Manufacturing Co. Decatur, Illinois. CS No. 041117 ■ Senior Project Advisor: David W. Martyn 01 Engagement Profile ________________________________________________________________ This company had a $50 million revenue division manufacturing specialty products for use in food products and for industrial applications. The division was administered as part of a $1 billion commodity products division. Manufacturing consisted of seven small production plants scattered across 6 states in isolated locations. The division was generating a mediocre $500,000 in operating income on $50 million in sales and had been stagnant for years. The division was faced with: 1. No growth in sales or operating income for a period of years. 2. Lack of leadership in establishing the direction for the business. 3. Lack of capacity to launch new, high margin, specialty products. 4. A need for capital investment to address the lack of capacity. 5. A lack of communication between the manufacturing locations for capacity and talent allocation. The Predictable Future: - The division would be shutdown or sold off piecemeal for lack of return on invested capital. THE BREAKTHROUGH TARGET______________________________________________________ 1. Identify and implement structural changes to the business and its management to improve profitability. 2. Address the capacity issues. 3. Establish a direction and management culture to allow the business to grow in the future. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 29
  • Case Study Fortune 500 Food Manufacturing Co. Decatur, Illinois. CS No. 041117 ■ Senior Project Advisor: David W. Martyn 02 ACTIONS TAKEN__________________________________________________________________ 1. Established a management structure to run the business as a specialty business rather than as a commodity business. 2. Modified the commodity division accounting system to break out the specialty division accounting separately. This allowed the individual plant economic performance and product line profitability to be evaluated. 3. Established each plant as a free standing profit center. 4. Closed and sold one unprofitable plant. 5. Changed out two of seven plant managers to instill new life and fresh ideas into the plants. 6. Eliminated several unprofitable product lines which made capacity available. 7. Eliminated the need for capital investment by using the now available capacity for new, high margin products that were waiting on the capital investment. THE RESULTS ____________________________________________________________________ 1. Over a period of 18 months, the division moved to an annual operating income of $5 million/year, up from $500,000/year. 2. The business culture was changed from running a commodity division of high volume, low margin manufacturing to a specialty culture of low volume, high performance, and high margin products. 3. The plants now ran as free standing profit centers but functioned as a team to allocate both personnel and production capacity across the division to maximize the profitability of the specialty division as a whole. © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 30
  • Case Study Health Care Management Systems. Farmington Hills, Michigan. CS No. 050120 ■ Senior Project Advisor: Doron York 01 Engagement Profile ________________________________________________________________ After 7 years of operating the company is straggling to cause a significant growth in revenue and market share. The company is facing the following challenges: 1. Lack of ability to cause significant revenue growth 2. The revenue stream is sufficient to cover operating expenses and to provide the owners with average yearly income 3. Lack of ability to penetrate a largest market share 4. Creating an effective marketing strategy and marketing management 5. No proactive sales approach 6. Some level of frustration on behave of the management and some sense of resignation 7. To reinvent the company that will live and operate beyond its founders 8. Do the management team has the confidence and the know how that is require to cause the breakthrough The Predictable Future: - The company will continue to straggle in its attempt to growth the business with high level of frustration. The revenue will continue to growth in a very unsatisfactory rate. The financial state of the company will stay the same and more likely will be deteriorated gradually THE BREAKTHROUGH TARGET______________________________________________________ The company owners created the following breakthrough targets: • 230% increases in total revenue • 200% increases in hourly billing • 300% increases in the number of active contract • Create a consistency in owners compensation on a monthly basis • 100% increases in owners personal net worth © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 31
  • Case Study Health Care Management Systems. Farmington Hills, Michigan. CS No. 050120 ■ Senior Project Advisor: Doron York 02 ACTIONS TAKEN__________________________________________________________________ After a year of coaching we produced some remarkable breakthroughs towards the company’s future: 1. 186% increases in total revenue 2. 128% increases in hourly billing 3. 220% increases in the number of active contract 4. Create a consistency in owners compensation on a monthly basis 5. 35% increases in owners personal net worth THE CLIENT SAY __________________________________________________________________ “It is very difficult to measure the return on investment for this remarkable transformation. It is significantly more than 10 fold and over the next 5-10 years will be beyond measure.” Managing Director New Product Development © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 32
  • Case Study West Coast Software Development Co. Palo Alto California. CS No. 030911 ■ Senior Project Advisor: Doron York 01 Engagement Profile ________________________________________________________________ A three year old West Coast Application Development firm that specializes in corporate collaboration tools was facing the following challenges: 1. Lack of ability to cause significant revenue growth 2. Lack of ability to penetrate a largest market share 3. Creating an effective marketing strategy to effectively communicate their value proposition 4. Sales force that is scattered and not focused lacking a define sales strategy and management 5. High level of frustration on behave of the management and investors The Predictable Future: - The company will continue to straggle in its attempt to growth the business with high level of frustration. The revenue will continue to growth in a very unsatisfactory rate. The financial state of the company will stay the same and more likely will be deteriorated gradually THE BREAKTHROUGH TARGET______________________________________________________ The company owners created the following breakthrough targets: • Breakthrough in the ability to generate revenue • Dramatic increases in profitability • Creation of a viable operating model • Complete alignment between the founders • Increase effectiveness to match increasing demands • Creation of a bold future for the company © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 33
  • Case Study West Coast Software Development Co. Palo Alto California. CS No. 030911 ■ Senior Project Advisor: Doron York 02 THE RESULTS __________________________________________________________________ After a year of coaching we produced some remarkable breakthroughs towards the company’s future: • Company increased revenue by 146% year-over-year • Profit rose from $58K in loss to $63K in profit • The founders are aligned and committed to speaking “straight” and full self-expression • Created a bold strategic intent for the company that reached years into the future THE CLIENT SAY __________________________________________________________________ “After 18 months into the engagement, we have merged with a complementary development firm increasing the overall company value in excess of 200%. The personal equity of each partner increased over their initial investment in excess of 1000%.” Founder & CEO © Copyright 2009 Business Edge International, LLC all rights reserved. 32000 Northwestern Hwy Suite 128 Farmington Hills, MI 48334 Toll Free: 888.305.4060 Fax: 248.671.0565 34