$180 Million NYSE Environmental Testing, ISO Registration and Technical Staffing Company
Environmental and Functional Testing, ISO Registration, Supply Chain Management Services
Aerospace, Defense, Automotive, Software, Communications, Transportation, Medical, Electronics, Nuclear
Existing $180 Million company servicing markets worldwide
Company X is a diversified engineering services firm, providing environmental and functional testing and certification, design consulting and supply chain management solutions. The company had expanded over several years by acquiring testing labs in different parts of the country. By 2001, the company consisted of 12 labs nationwide. However each lab was operating as a separate fiefdom handling its own marketing, sales development, accounting, human resources and production departments. The net result was an accelerating decline in sales and revenues for a leading company already fighting a marketplace increasingly relying on desk top computerized testing.
The PH Advisory Group’s senior staff’s initial analysis of the company’s sales and production operations revealed several glaring problems. Their disjointed expansion system lead to an overall reduction in efficiency and increased administrative strains both of which greatly hampered the companywide sales effort. In addition, sales personnel specialized in one area of the company’s services as opposed to cross-selling all services. The result was missed business opportunities and an overabundance of sales people. The lack of internal structure and organization of X Company negatively influenced the sales effort. Accountability was nonexistent and sales personnel were reaping handsome commissions on the same accounts year after year instead of pro-actively acquiring new business. Furthermore, because sales personnel were responsible for both selling and serving accounts they were unable to render the best pro-active service to existing accounts, resulting in a huge number of dissatisfied customers. Finally, one division of the company was dangerously relying on two or three customers for more than 80% of its revenue.
- Established weekly sales meetings to discuss the strategy for closing hot leads and manage the “top 20” leads in each territory.
- Produced a high quality Corporate Capabilities Brochure combining all divisions as well as a series of other supporting sales materials.
One year after the launch of the program, Company X posted a 20% increase in sales, of which 25% was new business. Additionally, Company X posted its first substantial quarterly profit in several years and posted an anticipated overall profit for the following fiscal year. Finally, sales personnel began to successfully cross-sell the company’s services to maximize profits on new business opportunities.
In 2010 after a year of rapid expansion and the acquisition of almost a dozen ancillary organizations, The PH Advisory Group was once again called in to assist in the assimilation of those new companies and to streamline now a considerably larger corporate entity.
The PH Advisory Group performed its normal observation, investigation and assessment analysis and provided top management with a blueprint with which to run the company for the next decade. The next year witnessed substantial profit and sales growth which ultimately resulted in the sale of the company at a price approximately 300% higher than when PH Advisory Group began its second revitalization program in 2011.