We enable middle market businesses to choose a more strategic and financially rewarding path to growth.
The company’s largest business unit accounted for over 60% of company revenue and more than 80% of its profit. They were the commanding market share leader and clearly the company’s “cash cow”. Notably, the company “cash cow” had two consecutive years of poor, concerning performance and senior management could not answer the simple question of “why” and “how” it happened. More to the point, they needed it “fixed” – quickly.
The company initially hired KGK to assess how the company would solve its prospect data quality issues. In short, it was an enterprise problem, as no one trusted, or could effectively use their own data to make well informed strategic or tactical decisions. At KGK’s request, the company allowed and encouraged KGK to have “free reign” to seek and receive any and all information KGK requested.
Over the course of several months, KGK studied and probed the business unit’s financial statements, strategic plans, market research, organizational goals, ongoing activity, IT systems, key policies, performance metrics, operational data, and routine reporting.
Our findings were jaw-dropping for senior management. In short, KGK uncovered 4 crucial strategic and tactical flaws which had been building for years, and we financially rationalized their effects on the business:
KGK unearthed 4 crucial strategic & tactical flaws which had been building for years, and financially rationalized their effects on the business.
Senior management applauded our discoveries, and after extensive discussion decided the first solutions should address two urgent, important objectives:
The company requested KGK lead the project and hire any necessary third parties to complete the projects described below:
As a major strategic initiative, work began by educating all key managers in the facts, data, and conclusions that we had uncovered. With their buy-in and support, we executed our plan to change policies and exploit technology to inform more purposeful and profitable behavior.
Three months after work began, the client also elected to expand the project scope to include determining the profitability of each customer, defining customer segments, and developing sales and service models in-line with and to maximize customer profitability. In just the initial 9 months, we had achieved:
With these results, this breakthrough initiative is now forecasted to save the company a full 12% in operating expenses, without headcount reduction, exceeding even our most optimistic initial calculations.
This breakthrough initiative is now forecasted to save the company a full 12% in operating expenses and better defend its #1 share position.