Operations Diagnostic
Establishing Efficient Organization Structure And Processes To Drive $100MM In EBITDA Uplift
Conducted 12-week operations diagnostic to identify opportunities to streamline and reduce cost of client’s operations. To this end, Gotham: redesigned the corporate organization; surveyed 300+ front-line employees to understand their activities; visited multiple local markets and toured homes; mapped all processes front-to-back; and conducted deep-dive analyses of the client's operational performance to establish and quantify savings opportunities. Gotham identified opportunities to increase the client’s EBITDA by $100MM and developed project charters, role-specific KPIS, and a technology plan to jumpstart the capture of identified opportunities. The client launched the implementation effort immediately, with organizational restructuring implemented within 4 weeks.
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Diagnosing Performance Deficiencies at Data-rich But Information-poor Branch-based Underperforming Business to Identify EBITDA Improvement Opportunities/Plan for Their Capture at Heavy Equipment Rental Company
Identified $6.4MM in quick-win EBITDA improvement opportunity in rental, parts, and services businesses by analyzing the company’s revenue drivers, cost structure, and equipment utilization. Working with management, developed a detailed 6-month implementation plan to enable rapid capture of operational improvement opportunities and to establish long-term strategic initiatives to drive top- and bottom-line growth. Management is successfully implementing value creation plan and, within 3 months, has already captured $3MM in EBITDA improvements (vs. same quarter in previous year).
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Establishing “One Company” Organization and Operations to Realize Cost Synergies at Direct Marketing Services Company
Conducted a 5-week operations diagnostic of a recently acquired portfolio company to identify cost reduction opportunities and establish organizational and operations end-visions. Gotham undertook an extensive analytic effort to reconcile and align data from 3 separate, independently operating systems corresponding to each business unit and create in-depth profiles of purchasing spend and labor efficiency. We also identified opportunities to improve salesforce effectiveness, including salesforce restructuring and a new compensation system. Finally, working with management, Gotham developed a “One Company” organizational structure to eliminate disconnect and facilitate savings opportunity capture within and among the 3 business units. Following the diagnostic, management launched efforts to capture these opportunities, which were expected to improve the company’s EBITDA margins by 6+ percentage points.
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Cleaning Up Distribution as a First Step in Establishing a Growth-supporting Distribution Platform at National Seafood Company
Conducted a diagnostic to reduce distribution costs as a part of an effort to integrate the distribution systems of two companies by identifying and sizing cost levers with savings benefits (quick hits, process changes, and cultural changes). Targeted cost savings of $1.5 to 2MM on a base of $7MM, of which $1MM are estimated to be achieved by quick hits alone.
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Harvesting Opportunity from Performance, Capability, and Cost Structure Enhancement at South American Industrial Goods Manufacturer
Identified specific actionable opportunities (cost, service, and quality) to capitalize on post-merger opportunities. Created plan to capture significant near term and longer term performance, capability, and cost structure enhancements. Management-led execution targeted to result in $2MM in cost, service, and quality savings (on a cost base of $5.5MM).
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Creating a Fact-based, Realistic Strategy for Performance Enhancement at Leading Industrial Machinery Manufacturer
Conducted a 2-week diagnostic of current performance as a first step in helping craft and execute an operations strategy. Specific elements of the proposed strategy included: (1) outsourcing non-core activities; (2) rationalizing the vendor based and developing focused supplier partnerships; (3) segmenting operations (equipment vs. consumables) to improve supply chain management; and (4) Moving towards standard and modular system design to greatly simplify inventory and production. Short-term cost savings of $2MM successfully captures and $3+MM longer-term savings capture on track.
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