Business Turnaround Delivers Double Digit CAGR
Situation at Hand
A division of a large aviation MRO was in a revenue free-fall due to lost clients and overall market decline. We were hired to conduct a business turnaround and to position the business for profitable growth.
Problem to Solve
There were many key problems that were quickly identified. The revenue had dropped consistently over an 8-quarter period totaling to about 30% revenue decline and more than 35% share loss. The client’s profitability was on the decline as cost cutting measure were becoming less effective and customer VOC scores were more than 50% dissatisfied. Additionally, the employee satisfaction was at an all-time low of less then 25% satisfied and more than 20% regrettable loss.
Approach and Solution
Our focus was placed on a quick and structured assessment of people, processes and systems. An in-depth assessment we conducted of the culture revealed areas of quick and effective change to address employee and customer experience. Next, we ensure that a customer advisory board with clear accountability and deliverables was established. A VOC feedback assessment drove front-end structure and process change to improve sales. Lastly, we established a re-focus of the business on core competencies and service offerings with aligned incentives to drive improved performance.
In 12 months the following results were achieved:
- 72% improvement…of employee satisfaction ratings
- 55% improvement…in VOC ratings
- 28% revenue growth...
- 18% profitability growth...
Over a 4 year period…
- 24% CAGR…in a market that grew at <1.5%
- 5% reduction…in employee regrettable loss