In late 2023, we engaged with a business struggling to manage profitability alongside revenue growth. This case study highlights the strategic shifts implemented to transition the business from inefficient growth to a period of record-breaking revenue and profitability in 2024.
Key Strategies
Structured Business Scorecards: Introduced scorecards to monitor department performance and align team actions with business goals.
Leadership Training: Conducted quarterly leadership training to empower managers and improve team alignment with objectives.
Standard Operating Procedures (SOPs): Established SOPs to streamline operations and reduce internal conflicts.
Structured All-Team Meetings: Implemented regular meetings to foster communication and team cohesion.
KOLBE and DISC Assessments: Used assessments to optimize team balance and improve productivity by aligning strengths with tasks.
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By the numbers
Record Revenue Growth: Achieved the highest-ever average monthly collections of $164,846 in 2024, an 18.1% increase over 2023 (Figure 1).
Significant Profitability Increase: Monthly EBITDA reached $19,387 in 2024, marking a 128.9% increase from 2023, showcasing the impact of operational efficiency (Figure 2).
In November 2023, we began working with the client to address their historical profitability and growth challenges. Through the implementation of structured business strategies, we helped the business transition from inefficient growth to sustainable success. By mid-2024, the business was experiencing record-breaking revenue and profitability, marking the most successful year in its history.
Initial Situation (2020-2023)
Before our engagement, the business struggled to balance collections growth with profitability. Between 2020 and 2021, collections jumped from $88,827 to $130,159 per month, a 46.5% increase. However, EBITDA income dropped by 55.4%, falling from $16,680 to $7,432 per month, reflecting the challenges of managing operational inefficiencies despite revenue increases.
From 2021 to 2023, revenue stagnated, growing only modestly from $130,159 to $139,631 per month, while EBITDA saw little recovery. In 2022, the business nearly broke even with -0.9% EBITDA before recovering slightly to $8,468 per month in 2023. This period highlighted the need for structured changes to improve profitability while maintaining steady growth.
Strategic Shifts
Structured Business Scorecards: We introduced business scorecards to monitor performance across departments. These scorecards provided actionable insights that allowed leadership to make informed decisions, aligning team performance with key business goals.
Leadership Training: We implemented quarterly leadership training events that empowered managers and team leads. This training improved team alignment with broader business objectives and equipped leaders with the skills to drive growth and improve operational performance.
Standard Operating Procedures (SOPs): To address inefficiencies, we introduced SOPs for key processes. These operational guidelines streamlined daily operations, reduced internal team conflicts, and improved overall workflow, creating a more organized and efficient work environment.
Structured All-Team Meetings: We rolled out regular all-team meetings to improve communication across the organization. These meetings provided a platform for teams to align on business objectives and fostered a unified approach toward achieving the company’s goals.
KOLBE and DISC Assessments: By leveraging KOLBE and DISC assessments, we optimized team balance and enhanced communication. These tools allowed the business to align team members' strengths with appropriate tasks, resulting in better team dynamics and productivity.
Results in 2024
By 2024, the business had undergone a remarkable transformation. The results of the strategic initiatives were clear:
Record Revenue Growth: The business achieved its highest-ever average monthly collections of $164,846 in 2024, an 18.1% increase over 2023.
Significant Profitability Increase: Average monthly EBITDA in 2024 reached $19,387, a 128.9% increase from the previous year, marking a dramatic turnaround from the stagnation seen in 2022 and 2023.
Conclusion
Our strategic initiatives, including business scorecards, SOPs, leadership training, structured meetings, and team assessments, helped turn this business around. What began as inefficient growth and stagnation has evolved into structured, sustainable growth with record revenue and profitability. The company is now poised for continued success in 2024 and beyond, with a solid foundation built for both operational and financial efficiency.
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