Innovative Product Development Poses Enormous Competition for Automotive Company
Challenged with producing comparable product for Automotive Company to compete with GPS, which was to be offered free of charge as a deal closer on commercial fleet accounts. Product was critical because Automotive Company attempts to discount its vehicles, in lieu of offering a GPS product, had been unsuccessful.
However, a rapid software development cycle and product transformation were necessary to create specialized product. Also needed to perform complicated conversion from client server to Web-based format in abbreviated timeframe. While Ford declined to fund development expenses, leveraging their sales volume, they still expected extensive customization with rapid development turnaround.
Negotiated arrangement with other Automotive Company to adopt co-ownership of design process, which bought time for development and subsequently created feasible rollout dates. Ultimately created innovative and highly competitive alpha product through lightening speed collaborative design and development that ensued. End product was set to be offered on 500,000 commercial vehicles.
Driver Behavior CO2 Measurement Capitalizes on Future Needs of Key Industries
Currently there is no accurate way to quantify how individual driving behavior affects carbon dioxide (CO2) emissions or one's personal carbon footprint. Because companies compliance standards may be tied to carbon budgets in select industries in the future, companies are currently investigating sustainable ways to address anticipated requirements in cost-effective manner. To capitalize on this opportunity, company needed external funding sources to be willing to fund technology development, because at this point there was no paying customer to absorb the cost of an experimental concept.
First, formed joint-venture partnership to obtain complementary technology to close development gaps, and then used off-the-shelf technology to shorten time to market. Persuaded stakeholders to sanction pilot, including securing funding from Energy Corporation and deployment sponsorship from the City and County. Designed and developed accelerometer to capture data and created driving scores, akin to credit scores, to report daily effects of greenhouse gases/fuel economy with real-time data, which individuals could access and self-monitor using the Internet. Finally, raised $400,000 to fund pilot, and implemented it with great success, garnering nationwide media attention with assistance from mayor's efforts to facilitate awareness.
Pilot will unlock the door to an entirely new $100 million market, generating projected sales of 10,000 units to utility companies, 5,000 units to oil and gas companies, and 7,000 units to interested cities.
GPS Solution Opens Doors to Immense New Oil & Gas Market
To avoid breaching contract and facing millions of dollars in penalties, Company needed to change mapping vendors to complete work for an oil and gas client. Due to high theft rates and immense demand for equipment in this industry, new mapping vendor needed to redevelop current GPS product with capability to track equipment as well as install an alert feature for workers to use in emergencies in remote locations. However, both features required costly and time-consuming development activity. Moreover, because most companies run rural operations, cell phones were not viable, and satellite service was cost prohibitive.
Filled new mapping vendor position, electing to capitalize on opportunity to fullest extent by creating new industry benchmark by redeveloping product into premier industry offering. To that end, created joint venture with our company and the energy company, creating instant collaborative partners for projects as well as additional sources to fund necessary specifications. Together, sourced and piloted dual-mode products that reduced hardware expenses five-fold and network expenses four-fold. In addition, interfaced product with WhiteStar's wellhead location data, creating ability to track activity at operation's sites, and added new hardware for satellite-based, remote worker alerts.
Team successfully implemented software and presented it to five subsequent energy companies that immediately engaged pilots. This success has opened the market of 150,000 U.S. vehicles and one million assets, representing baseline revenue potential of $150 million with recurring monthly earnings of $5 million. Initial revenue forecasts are expected to greatly increase in two years.
Establishing Accreditation as Industry Quality Benchmark Grows Market Share
Ambulance industry desperately needed a meaningful way beyond price to differentiate quality among service providers. Specifically, company needed to enhance its brand at national level and overcome perception that some providers engaged in pernicious profiteering. Several additional issues posed challenges including fact that most people preferred local family providers and viewed national companies with suspicion. Finally, because largest market share of sustainable ambulance service contracts are won through responses to requests for proposals or sole-source contracts, company needed to qualitatively differentiate itself effectively for these major contract proposals.
Assembled, spearheaded, and collaborated with teams of subject matter experts to respond to RFPs with professional and comprehensive proposals featuring state-of-the-art innovations and rock-solid quality commitments. In addition, prepared winning presentations for evaluation committees, employed savvy political tact to close and sign contracts, offered deft sole-source contracting with guaranteed service levels, and continually surpassed customer expectations facilitating numerous yearly contract renewals.
In addition, led effort to create and comply to rigorous national accreditation standards for all areas of paramedic operation as well as a process modeled after an accreditation commission for hospitals , which featured an independent accrediting entity. Company was among first in industry to earn this platinum standard of quality by passing stringent inspection, audit, and certification criteria.
After earning accreditation, persuaded most customers to establish this benchmark as a minimum standard for contracting. Governments, health plans, and hospitals also adopted this benchmark, effectively establishing it as a key quality differentiator in obtaining new business and setting RFP requirements. Because no other ambulance service provider in service area had earned accreditation, company preserved significant market share and grew it dramatically over time, which led to award and retention of more than 20 major service contracts, representing $50 million in regional revenue. Ultimately, personally sourced, negotiated, and closed $1 billion in numerous multiyear service contracts with private sector and government clients.
Successful Turnaround Restores Unit to Sustained Profitability
Failed integration had stranded $75 million, 2,500-employee business unit with hemorrhaging cash flow and $1.2 million in hard cash losses monthly. Experienced local management team was in denial and had failed to remedy rapidly deteriorating situation. Furthermore, poor contracts had tied unit to inflexible, low productivity levels, which had also fueled escalation of overtime expenses as short-staffed operations department attempted to meet unrealistic requirements.
Designed and implemented zero-based turnaround plan. Specifically, divested or terminated unprofitable contracts and implemented new billing, collections, and chart audit procedures to facilitate transformation into new, smaller, profitable business with high productivity. In addition, reduced staffing levels by half, introduced new scheduling methods, and eliminated overtime.
These efforts restored unit to breakeven profitability three months ahead of a mandated six-month milestone and produced sustained profitability on $6 million annualized run rate in six months. In addition, changes inspired several major, high-margin customers to restructure contracts, which helped unit to retain market share and improve its response times at substantially increased productivity levels.
Comprehensive Turnaround Positions Business Unit to Grow Four-Fold
Company had recently acquired all three competing ambulance service businesses in Colorado as part of its rollup strategy. However, two months after closing this deal, new business unit failed to meet $2 million earnings expectation, and in fact posted losses of $1.8 million. Situation was critical, and there were many problems that needed to be remedied to rebuild business, including replacing or repositioning local managers with skills to effectively manage organization that had tripled in size overnight, transforming dysfunctional administrative functions, and reversing poor customer service. In addition, needed to assist former competitors with history of personal grudges and biases to function as a cooperative management team. Employees were also angry about new, inappropriately implemented major benefit discrepancies, which manifested into preliminary efforts to unionize.
Conducted three-day audit and was appointed CEO with full profit and loss authority. Immediately began initiating comprehensive, zero-based turnaround plan in every facet of business with goal of reaching breakeven profitability in one year. Reorganized unit's leadership based on individual strengths and empowered each manager with specific, measurable objectives. Unfortunately, this also meant the release of several managers who could not meet expectations. Then, presented customers and employees with honest appraisal of turnaround environment and provided them with set of detailed commitments and timelines that would improve level of company's service quality. Proved commitment to employees by instantly reversing all arbitrary decisions that yielded negative impact.
Financial performance steadily improved as each element of turnaround plan was executed. Customer and employee confidence improved as each milestone was achieved earlier than planned. Specifically, customer service quality rose and quickly surpassed prior levels. Company honored its commitments to employees and won election to remain union-free by a wide margin. By end of fiscal year, operation generated strong cash flow and $3.6 million in positive net earnings, which greatly exceeded analyst's breakeven expectations and subsequently boosted company's stock 50%. Entire business unit team earned bonuses that year, and personally accepted board of director's "CEO of the Year" award on their behalf.
Leading-Edge Wireless Gateway Solution to Revolutionize Senior Health Support
Healthcare company wanted to capitalize on its exclusive market channel to create a wireless gateway device that would bond senior citizens to company's call centers, support bio-metric sensors, and contain navigation and location-based services. However, because no such senior-centric device was currently available in marketplace, a vendor would need to absorb risk of expensive product development.
Partnered with company, who held customer contract with the healthcare company. Then, studied prototype of senior-centric device European entrepreneurs previously developed and used example to create turnkey solution. Co-opted joint ventures to obtain clinical content and call center support. Then, presented it to the healthcare comapny and secured almost immediate endorsement. Sought additional capital to fund conversion, manufacturing, and testing, for an ultimate initial rollout of two million units, opening a new billion-dollar market.
Reengineering With New Field Force Technology Will Boost Cash Flow Dramatically
Company maintained 11 regional billing centers where more than half of each staff was engaged in data integrity, data entry, skip tracing, and quality assurance duties. Because these staff used bills generated from paper reports, information was often incomplete or illegible, stalling reimbursement process. Moreover, average days for outstanding bills had climbed to more than 100 companywide, and currently three disparate, poorly organized, and expensive local efforts were underway to test technology solutions.
Under current arrangement, billing centers were finding it increasingly difficult to meet all regional and plan-based variable requirements for reimbursement, as well as emergency medical service agencies' state-by-state variances for medical chart requirements. In addition, bolstering hardware and software capabilities for field environment at a cost-effective price was incredibly challenging.
Organized multi-regional, cross-functional team to standardize specifications, simplify chart requirements, examine transition/staffing plans, and conduct workflow planning. In addition, team investigated implementation impact on cash flow, reviewed technical specifications and IT interface issues, and planned pilot projects.
These changes, whose rollout would pay for itself two-fold in the first year, were estimated to improve cash flow $50 million, including staff reductions. Specifically, changes made dramatic improvements, including standardizing billing specifications with allowances for local requirements and paying for medical chart improvements with early savings by moving them to a second phase of implementation. Moreover, finalized hardware and software specifications and chose vendors for selected field trials for upgraded contract renewals of several major EMS programs.
Revamping Service Contract Methodology Raises Margins as Much as 20%
Local teams' current practice of submitting major contracts to national office for approval after they had already been negotiated was resulting in low margin and underperforming contracts. Problem resulted because teams lacked expertise and financial analysis skills required to evaluate contracts properly and often agreed to service requirements without securing revenue to support them. However, the national review process was also inefficient, as central control was cumbersome, unwieldy, and inappropriate for business model.
Created new contract templates, used client margin profiles as measurement tools, installed new key performance indicator (KPI) metrics, and established default audits. In addition, developed training programs that provided local executives with instruction on margin-based contracting and necessary analytical tools to improve performance. Ultimately, decentralizing contract-related margin accountability increased margins as much as 20%. In addition, establishing efficient national KPI monitoring system and educating and developing effective professionals raised company's competitive edge.
Skillful Reengineering Transforms $25 Million Losses to $12 Million Profit
Company established multi-state regional headquarters to provide leadership, infrastructure, and support for execution of its rollup strategy. However, these new regional teams often faced daunting integration challenges or lacked necessary skills and experience.
Teams were under pressure to produce impressive quarterly results, and there was no time to wait for management to remedy performance problems. More than anything, teams needed an effective plan and committed leadership.
Guided and mentored reorganization efforts for four different regional management systems, dramatically improving operations, marketing, business development, administration, and finance. In addition, introduced sophisticated management practices, best-in-class programs, and business processes, which enhanced quality, service, and net profitability.
Through these efforts, transformed combined $25 million in losses to positive net earnings of $12 million. Specifically, executed various reengineering turnarounds of regional teams in Chicago, Dallas, Houston, Austin, San Antonio, Boston, and Atlanta, and exceeded targeted business plan objectives for three years.
Aggressive Growth Earns Distinction as Top-Performing Business Unit
After turning around faltering business unit created after acquisition of three prior competitors, company wanted to continue its nationwide rollup strategy in order to reach annual top-line growth goals of 20% with accretive earnings. Meeting these goals was challenging because there were few desirable properties left to acquire, and many sole proprietors were reporting negative worth. Furthermore, business unit had already captured 90% of Colorado market share and maintained 4% organic growth.
Grew company's presence in 12 new states by establishing new operations, forming partnerships, conducting acquisitions, and bidding on requests for proposals with highly differentiated services. In addition, cultivated new lines of business with government, health plan, and hospital partners, and assumed control of underperforming business units in other regions, turning around performance and profitability.
As a result, achieved status as company's top-performing business unit, growing revenue from $36 million to $120 million in five years on net earnings of nearly $10 million, exceeding earnings goals by 146%. In addition, expanded cash flow 40% and produced $1 million above plan in cash on hand. Team boosted stockholder value 156% above plan with highly effective maintenance and asset management. Business unit also surpassed business plan targets in 19 of 20 quarters.
Core Values-Based Service Programs Win Prestigious "Best-in-Class" Industry Awards
After executing major merger and rollup acquisition of several established local companies into national brand, company needed to combat escalating perception that new organization would focus solely on profits, impairing cherished local identity, compassionate spirit, and personal service touch of the past. However, changing this perception was difficult because most ideas that would make an impact in minds of customers and media were expensive, and company was currently underperforming financially.
Instructed task groups of field personnel to create programs that would honor service and compassion values of total patient care and give back to community at the same time. Task groups leveraged company's business network and ultimately created broad range of programs and novel charity events.
These programs facilitated company winning first place in nine major national award "AMBYs" categories for community, service, and education programs, which garnered major local and national news coverage for company. Company continues to execute these programs and charity events and touts them to new hires, customers, and involved politicians as a business differentiator and means of highlighting resources of a national company with a local heart.
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