Service Operations Improvements
We assist service company management teams in improving the performance of their operations, including:
- Project/ Job Profitability: Segmenting and analyzing projects/jobs to establish profitability drivers and identify improvement opportunities
- Staffing Model/ Utilization: Developing staffing model to create leverage and improve labor utilization
- Labor Multiplier/ Pricing: Developing strategic pricing approach as to maximize labor multiplier
- Field Service Operations: Developing strategies and tools to reduce field service visits and optimize routing to minimize “windshield time”
- Branch Network/ Operations: Optimizing branch networks, streamlining organizations and processes, and implementing systems/tools and KPIs/measurement to optimize overhead cost structure and improve operational performance.
Improving Profitability and Revenue Performance at Multi-disciplinary Engineering Services Firm
Conducted a 6-week operations assessment to turn around the company’s margin performance and position it for a successful exit in 2-3 years’ time. Analyzed historical project and employee utilization performance; developed target staffing leverage model; and created target business development model to improve efficiency of business development effort while driving profitable revenue growth. Our detailed assessment gave our client a solid understanding and roadmap of the levers to achieve the target margin performance (5-7% points growth); client requested Gotham to provide ongoing support through quarterly performance audits.
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Dissecting Job Profitability and Redesigning Commission Structure to Improve EBITDA Margins at Professional Staffing Company
Conducted a 4-week operations assessment to establish levers to turn around the company’s EBITDA margin performance: 1) dissected the company’s cost and job performance, by cleaning/reconciling raw data from disjointed staffing and ERP software systems, mapping detailed general ledger costs to jobs, and creating job profitability profiles; 2) redesigned sales and recruiting commission structure for a 25% improvement in EBITDA; and 3) developed robust KPI-based reports required for managing cost and profitability moving forward.
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Cost Reduction In Post-sales Service Operations While Ensuring Stellar Customer Service at Residential Exterior Building Products Company
Built a robust fact base of field service spend and cost drivers, interviewed customers to understand their decision-making criteria, compared BuildCo's field service performance vs. competitors, benchmarked other Building Products companies, and built a simulation model to quantify cost impact of various scenarios. Recommended field service model expected to reduce cost by 26.5% (more than double management's ingoing estimate) and improve customer value proposition.
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Instilling Process Discipline Required for Future Growth While Sustaining Performance-oriented Culture at Entrepreneurial Specialty Engineering Services Firm
Conducted operational due diligence to assess the firm’s prospect-to-cash cycle processes and establish a revenue forecasting approach. Our effort included: building a robust fact base of the company’s cost and operational performance using data from ERP and offline database; mapping and assessing sales & marketing, revenue generation, and people management processes; and visiting/interviewing management across multiple offices. Gotham provided an explicit top-level operations end-vision and value creation plan bolstering the company’s ability to support growth, giving our client the necessary confidence to successfully complete negotiations.
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Outsourcing to Achieve Service Enhancements and Risk/Cost Reduction in a Post-Merger Banking Environment at Major European Bank
Created tactical plan for radically reducing the cost of US Dollar clearing and NY branch funds transfer operations. Focused on treasury functions of money market and foreign exchange, from front office deal origination to back office booking, and SWIFT message generation to FTR CHIPS/FED execution. Outsourcing resulted in $1.5M in administrative overhead savings, higher service levels, and significantly reduced risk.
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New Pricing Strategy and Repair Center Shop-Floor Cost Savings at Large Communications Equipment Provider
Facilitated strategic realignment of the subcontracted radio service business by creating a financial tool set to calculate economically optimal negotiation strategies. Led the corporate team through first-round execution of the national program.
