Challenge
Our client was a well-established professional services company with a declining to stagnant revenue base and increasing cost structure. We were engaged to perform an operational assessment and devise and oversee the implementation of a turn-around strategy.
SLA Solution
The operational assessment identified a number of deficiencies related to the financial reporting process including inaccurate and untimely financial information, lack of operational/key performance and cash based data, as well as the need to improve back office functions and staffing. As part of the assessment we devised a plan to immediately eliminate all unnecessary expenditures and worked with senior management to implement controls that would require higher level authority to authorize future expenditures. We also implemented a detailed daily cash reporting and forecasting model, as well as a 12 month financial forecast. This work blended with our 90 day restructuring plan – which not only addressed the rationalization of certain costs, but resulted in a revised and enhanced revenue model. While the actual recovery period lasted more than 90 days, we were able to reduce spend so that the Company achieved break even and became cash flow positive within the 90 day period. Revenue enhancements, including the refinement and enhancement of service lines, is underway and we are beginning to see an improvement in revenue growth.
The SLA Difference
SLA was able to devise and implement a plan to quickly and efficiently decrease spend – this provided a run way to address the revenue side of the business. We also were able to implement revised cost controls and detail performance and cash flow metrics that allowed the Company to proactively monitor operational and financial performance.