Posted on Tue, Oct 20, 2009 @ 04:23 PM
Industry: Hospitality (Accommodations & Food Services)
Function: Executive
Location: Domestic
The client had built a boutique high-end hospitality business which included a top Zagat-rated restaurant, unique luxury lodging and a complete destination wedding business. A private school on a large adjacent property closed and the property including a unique but dilapidated country manor house and gymnasium- class room building was to be put on the market.
The entrepreneurial owner both saw opportunity in the unique country manor house and the potential risk associated with the development of this adjacent property which might be contrary to his property's ambience. To mitigate this risk, he opportunistically and defensively purchased the adjacent property and began to develop it, but was struggling with the debt load.
The acquisition and renovation of the country manor added considerable guest room capacity - as well as substantial debt. Both the regional tourist season and the wedding business combined to accentuate seasonal cyclicality which capped the business' peak profitability and depressed the off-season cash flow.
Working with the owner and general manager, we explored the owner's vision and risk profile to guide market research and alternative solutions. MMG's business growth management consulting supported extensive market research into new services and amenities that would complement the existing business and its clientele, utilize newly created excess housing capacity and ameliorate the cyclicality of the current business model. Finally, we developed a range of scenarios, at different risk and debt levels, including general business plans and full pro formas.
The down stream implications of the work included:
- Refinancing debt and adding a full service spa as destination amenity
- Creating new products & services, including counter cyclical spa-based packages
- Identifying spa services and pricing profile
- Targeting incremental sales of services for traditional guests, non-guest visitors to the area and local resident population
- Selling the restaurant and non-strategic portion of housing to a strategic partner
Based on this work, the owner created a more profitable business venture and increased asset value - while restructuring debt to levels more in line with the business' cash generation capabilities.
Posted on Sat, Mar 14, 2009 @ 07:45 PM
Industry: Financial Services
Function: HR; Strategic Planning
Location: Domestic US
This
regional financial institution was stalling in its growth, under
scrutiny from regulators (US Treasury Department, Office of the
Comptroller of the Currency) and faced take-over threats.
Working with the firm’s strategic planning and
organizational development functions as well as senior management, we
aligned the firm’s human capital “management systems” (business
planning & individual development planning, incentive plans &
systems, training and development offerings), and to link these systems
with business performance. We built a corporate-wide performance
management system that enabled comparison of business results across
the firm, establishing effective communications across internal
stakeholder groups. Every senior manager accountable for a business
unit or function (more than 30 in total) built business and personal
performance plans, was evaluated against those plans, was
incentive-paid based on performance, and had an integrated development
plan.
On the basis of this effective performance
management system, the organization was able to move out from beneath
regulatory scrutiny, and return to profitable growth.
Posted on Sat, Mar 14, 2009 @ 07:40 PM
Industry: Global Industrial Equipment Manufacturer
Function: Process Improvement
Location: Global
The President and Board of a multi billion
Japanese company decided that the future growth of the overall business
depends on the growth of the international businesses. Through a
combination of market analysis and meeting facilitation, we worked with
the CEO to create greater alignment and coordination among the senior
management team, the leaders of each of the international businesses
and the critical functional heads for R&D and manufacturing in
Japan.
The key result of the work thus far has been
greater consensus between Japan and the businesses in North America,
South America, and Europe regarding required product and market
development investments in each region and line of business. The
businesses are achieving short-term sales and profit objectives and
investing substantially in the product development essential for
continued growth.
Posted on Sat, Mar 14, 2009 @ 07:29 PM
Industry: European Luxuary Automotive Sales/ Distribution
Function: Sales
Location: Domestic US
Our client had an aggressive three-year goal:
increase sales in a franchise distribution channel by 40% without
adding dealers or hiring more sales people. Only one approach could
achieve that outcome: make the existing sales force more effective and
productive.
In this case, “more productive” means taking a
group of already-high achievers at the retail outlet and individual
level, and making them better.
We have helped our client to profile, replicate
and recruit the objective metrics among retail locations, and the
elusive professional and personal traits among individual sales
performers, that define "Top 10%" - and help our client to develop the
people, processes, tools and support, and working environments that
help them to thrive at these dramatically higher levels of performance.
The goal was ambitious - to infuse “top
performer” attributes throughout the retail channel, creating a culture
populated by top-performing stores and people. Early-stage results for
this program and related initiatives showed an effective double-digit
productivity increase in sales.
Posted on Tue, Mar 03, 2009 @ 01:47 PM
Industry: Medical Devices OEM Manufacturer
Function: Executive Management, Strategic Planning
Location: Domestic US
The new CEO of a technology-based medical device
original equipment manufacturer wanted to revamp his management team
and instill a new culture of innovation and performance.
Working with the management team, we helped to
rationalize the initial complex mix of business lines and strengthen
the portfolio of companies, and supported the disposition of non-core
assets to the marketplace (taking a lead role in selling off several
non-core ancillary businesses).
In the next phases, we worked with the senior teams
of each business unit to identify and pursue opportunities for growth,
through both internal investment and focused acquisitions. The client
made several successful acquisitions; we worked with them to
successfully integrate these, and to create a broader, deeper market
presence for this firm in its core markets.
The work resulted in a dramatic increase in this
client’s profitability, from less than 10% to more than 50% ROA, growth in business revenue from $200MM to more than $800MM, and an
800% increase in stock price.