Company is a technology integrator focused on selling products and services to commercial enterprises, educational institutions and the Federal market. The largest portion of the Company’s revenues come from hardware resale; however, the opportunity for significant profit margin comes from installation and service revenues. The Company is a leader in its regional market, but will compete for national opportunities — both commercial and Federal.
As a technology integrator implementing large installation projects, the Company constantly seeks ways to build recurring revenue. Recently, after concluding a year of record revenues and strong profitability, the Company brought in a new Sales executive from outside its industry with the goal of aggressively hiring additional Sales producers.
That effort proved unsuccessful and the Company’s revenues and profitability slid. The Company needed ways to reverse this trend.
Reclinata was retained to assess the Company’s operating performance and recommend actions to restore profitability to the business. Reclinata’s analysis focused on Sales team performance, operating expenses, new market opportunities, and rebranding.
The Company’s CEO brings a dynamic Sales background and is driven to close business opportunities, but operating issues were often a distraction. Reclinata believed in this case that the CEO was also the best Chief Revenue Officer available and that the Company needed organizational redesign to support that finding.
Reclinata Group Analysis
Reclinata’s Value Creation Plan leverages a fractional Chief Operating Officer with financial experience who oversees operations, finance, and administration and enables the CEO to drive Sales performance. With this move in place, the Company redesigned its Sales Compensation system, is hiring new Sales producers and recently managed a brand relaunch.
Also positively impacting Revenue, Reclinata is assisting the Company with reorganizing and expanding its health services offering, which has the added benefit of driving monthly recurring revenue.
Finally, the fractional COO has implemented an expense management plan to reduce Operating Expenses by 20% without headcount reduction.
Value Creation Plan
After seeing significant erosion in revenue pipeline and forecast, the Company has now rebounded to monthly profitability with revenues now achieving target levels.
With its CEO fully focused on closing business with the Sales team, plans are in place to make additional Sales hires. The Company’s renewed growth prospects have made the Company a market leader in its segment once again.