Assuring near term performance, through sector and margin focus

PE Backed Portfolio Firm

Context

With a widening gap between performance and plan, our client had an aspiration to realign strategic commitments, and commitments to specific market sectors, to ensure target growth and margin performance. The firm was PE backed and mid-cycle:  3 to 4 years from sale.

Solution

We refreshed the 5 year strategy for increasing enterprise value: reviewing sector priorities and investments, all supported by financial modelling / scenario-testing. The key two shifts were, 1., realigning the strategy from a revenue focus to one that focused on both revenue and margin, with a detailed plan for meeting margin goals with specific propositions on price and service; and 2., re-focussing on fewer sectors that offered higher growth and margin opportunity.  

The plan required significant liaison and alignment with the Board and investor, working alongside the executive team.

It also included a plan for accelerated effort on ESG and culture change. 

Outcomes

There was a renewed focus and energy for performance and opportunity – by sector, customer, service, tender – working with the BD Director and sector facing teams. 

Also a defined a programme of operational and margin improvement initiatives  - working with the Operations Director and Engineering Director and their teams. 

Plus, modernising the enterprise goals to match the industry’s aspirations for ESG, culture and employment proposition. And in doing so, we built alignment within Exec and the needed co-ordination within the business to deliver these goals.