Charting a Course to Improved Profitability
The Challenge:
Improve company profitability by gaining management team alignment around a set of actions.
The Results:
- Client improved from $100 million net loss to $45 million net income
- Streamlined the business, shedding poor-performing and non-core assets
- Shifted focus to those businesses where client could attain a long term competitive advantage. Launched new, differentiated products and invested in equipment upgrades.
- Consolidated two divisions under one strong manager and reduced SG&A by eliminating low-value activities
Setili & Associates brought a new perspective to our business,
and didn’t just tell us what we wanted to hear. They gave us a process
to engage the management team in tough discussions, and to hammer
out a plan for moving forward. – Ron Domanico, CFO
What We Did:
- Interviewed senior executives to determine where the greatest leverage points were for improving performance. Assessed competitor positioning and organizational structure
- Planned and facilitated a series of meetings and exercises to
- Agree on current and future sources of competitive differentiation and a plan to close the gap
- Identify those businesses and technologies to invest in, and those to exit
- Discuss options for restructuring the organization to improve effectiveness and reduce cost
