Case 2: Strategic Refocus"High expectations are the key to everything." ~ Sam Walton |
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| Situation | The 2008-2009 recession caused a 25% drop in revenue for an equity-owned building products company, clouding its outlook for the foreseeable future. | |
| Background | Initiated candid relook at business direction and go-to-market model in order to reverse the decline. Engaged senior management to re-focus business and critically examine opportunities for growth. | |
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Analysis & Action: Our Process |
- Had each senior manager independently forecast segment sales, GP and EBITDA for
each of three years and identify additional resources needed each year to achieve
results. - Led management meeting to review projections, securing consensus that the three year results would be inadequate to sell the company and give management an acceptable return. - Secured management agreement for up-tempo plan – product development into unnerved price segments, geographic expansion, factory cost improvement and leveraging SG&A. |
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| Result |
-Oriented management team and company around key growth initiatives and market expansion
hiring. - Provided over $10 million of incremental revenue in the first year and cross-country expansion. |
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