Revitalization

As a strategic advisor to a small, private manufacturing company, praeeo partnered closely with the founders to completely revitalize the business. Now going into our third year of this relationship, we have completely turned around the business resulting in new leadership, greater efficiencies, high productivity, increased revenue and cash in the bank.

Applying our proprietary organization effectiveness alignment model, we began this complete turnaround by creating a 3-year rolling strategic plan. This included full analysis of market, competition, product lines, inventory, production and distribution. We also assessed the current culture and engagement within the organization.

Efforts then moved into right sizing the product line, revamping key processes and renegotiating vendor agreements. We analyzed the technology solutions and determined way to optimize existing systems for better data analytics and reporting. This led to a structural reorganization and the hiring of a new executive leadership team. New people management processes where also put in place to further support the renewed culture including new policies, compensation programs and development efforts.

Results

• Sales increased by 18% in first year, 28% second year, 42% third year
• Moved from over 500K debt with no cash on hand to debt free and 9 months of reserves
• Increased profits by 22% in first year
• Inventory reduction by 58%
• Product turn rates improved by 120%
• Employee engagement increased by 62%
• Culture now healthy, stable and inviting
• Employee Retention up 95%