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Case Study #1 Case Study #2 Case Study #3

Case Study #1

BACKGROUND
Texas based high-end retailer with over inventory, declining sales and fear of going bankrupt
CHALLENGES TO BE ADDRESSED
  • Dead stock
  • Overstaffing
  • Significant debt
  • Cash shortages
  • No sales tracking
  • Company disorganization
  • Buyers buying without budgets
ACTIONS
Set up all departments on Open-To-Buy
Shift staff to reduce layoffs and improve morale
Implemented progressive mark-up / mark down procedures
Implemented departmental budgets and seasonal sales analysis tools
Organized into departments with authority and responsibility for profitability

RETAIL OPERATION FINAL RESULT
  • Reduced $3.8 million debt to zero in six months – revised purchasing and inventory procedures.
  • Trained management in all aspects of merchandising.
  • Developed a strategic long-term plan for expansion and selected personnel.
  • Gross profit increase of 10%, net profit increase of 5%.
  • Total Financial Improvement over $500,000 – Project completed in 12 weeks.


Case Study #2

BACKGROUND
Michigan based HVAC Contractor – stagnant sales, jobs over budget, production facility that was losing money, and no accounting reports that worked to report the business condition.
CHALLENGES TO BE ADDRESSED
  • Flat sales/ no sales results
  • Animosity between production and installation personnel
  • Jobs ultimately losing money
  • Administration bogged down
  • No effective plan to transition the business to next generation
ACTIONS
Created an effective sales department,
Developed next generation transition plan,
Reduced job costs by incentivation plan,
Established attainable production goals and reduce facility costs,
Appointed an advanced accounting manager and transferred former accounting manager to administration.

RETAIL OPERATION FINAL RESULT
  • Boosted sales from $5.5 million to $9.5 million in one year: increased profit 600% using Six Sigma processes.
  • Reduced meeting times, improved internal communication and personal accountability.
  • Total profitability improvement from $73,000 to $522,000 in one year.
  • Project completed in 9 weeks.
  • Strategic Plan developed to transition the business to the next generation within
  • 10 years with tactical training schedule with benchmarks and defined criteria


Case Study #3

BACKGROUND
California based General Contractor whose sales were well below expectation, low profitability, inaccurate work/call backs, owner frustration, owner dissatisfied with salary and lack of free time.
CHALLENGES TO BE ADDRESSED
  • Inaccurate / late estimates
  • Low company profits – low productivity
  • Owner not experiencing the life he wanted
  • Divorce threatens the security of owner and wife, as well as company and employees
ACTIONS
Hired a qualified estimator and a part time estimator,
Increased bid capacity,
Increased market presence,
Employee Incentive plan developed,
Effective budgets were established.

RETAIL OPERATION FINAL RESULT
  • Increased sales from $1.4mm to $3mm. Increased profitability from $15,000 to $235,000.
  • Allowed the owner to work 4-day weeks.
  • Installed budgeting processes and controls that drove $200K profit improvement in the current fiscal year.
  • Streamlined bid process – increased bid capacity 50%.
  • Created an effective, welcomed incentive plan.
  • Total financial improvement over $200,000. This project was completed in 1 week of initial work and quarterly visits over a two-year period.
  • Helped client negotiate a temporary but amicable separation from wife with security for both parties, researched and recommended counseling.



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