client stories - business turnaround

company profile

• Non-Governmental Organization (NGO)
• High profile, 40 year old establishment

• Financial viability under threat due to level of debt and falling profits
• Increasing competition for services putting pressure on prices and sales
• Increasing operational costs
• Slow decision making and missed opportunities

After completing an operational review of the NGO in less than two weeks, we were requested to act as Interim Executive in order to implement the following six findings we had recommended:

• create a clear overall vision and strategy with a clear operational plan by business unit
• review organisation structure and implement changes within the local legal framework
• review existing management capabilities in light of structure and future requirements
• restructure debt and raise capital for future investment
• reduce operational expenses by 15 percent
• implement a governance structure

We created a clear, five year business strategy with specific breakdown details for the first 12 months. This strategy was created in unison with existing business unit management and senior employees, and agreed to by the Chairman and President. It was communicated to management through a clear performance-management process that ensured accountability at all levels across the business.

Key results included:

• cash negative to cash positive within 8 months with cashflow increase of 192%
• increased revenue by 10%
• net reduction in operating expenses of 15%
• restructured (aggregated) debt with banks
• new Executive team of Finance, Human Resources, Marketing, Research, Commercial
• clear governance and board process with monthly operating rhythm established
• new HR policies and procedures, along with training on performance-management for all employees with new salary scale and grading system for all organisation levels