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Challenge details
To reach its EBITDA transformation target, the company needed help with the integration and SG&A optimization of corporate and local markets, footprint rationalization for overlapping markets, core operational improvement initiatives, and pricing optimization.
Transformative initiatives in performance improvement
See how our team can help you maximize the profitability and performance of your business.
Solution snapshot
Integration: Facility consolidation and organizational alignment
Our team worked with the client to:
- Analyze the company’s footprint within each region and then create a prioritized list of facility rationalization opportunities
- Develop detailed financial models for regional consolidation
- Facilitate all requirements to close a number of facilities, acting as the single point of contact for contractors and regional leaders
Operational improvements: Warranty reduction and field labor improvements
Our team worked with the client to:
- Create Microsoft Power BI™ software dashboards that provide real-time visibility to margin leakage and actionable root causes for warranty and rework
- Implement a three-tiered accountability process to increase data visibility and drive operational improvements
- Facilitate several facility kaizen events focused on continuous improvement to develop a prioritized action plan to reduce margin leakage
- Deliver a Power BI software field management dashboard to give leadership visibility to field manager utilization
Pricing optimization
Our team worked with the client to:
- Develop and implement a new Microsoft-based tool for the entire price action life cycle (target setting, negotiation, acceptance, contract, validation)
- Establish an overall price effectiveness metric to capture individual performance
- Train account executives, sales support team members, revenue assurance personnel, and regional champions
- Assist revenue assurance teams to migrate all price actions to the new price tracker system, helping with proper revenue forecasting
Takeaways
With Crowe guidance, the client also achieved the following results:
- More than $20 million in EBITDA impact
- More than $50 million in price coverage
Improving business performance requires investing in and implementing the right strategies, technologies, and processes throughout your company at the right time. Contact our team to see how we can help with your performance improvement needs.
