New Organizational Structure Increases Cooperation, Raises Morale
Company's Virginia-based office was not functioning effectively, lacked leadership, and did not communicate well with headquarters in Los Angeles. Problem was exacerbated by egotistical project managers who did not communicate with each other and showed no desire to change.
Gained owners' buy-in to restructure office's organization. Next, identified most powerful project managers and recruited them to sell new functional department/project team structure, which reduced or eliminated operational redundancies and provided employees with functional "home." Project managers created regular forum of their own volition to share experiences across contracts and programs, improving employee morale and team performance.
Organization change decreased turnover, reduced human resource-related expenses 7%, and lessened indirect, non-management net cost of doing business expenses more than 15% during two-year period.
Manual System Provides Unexpected Solution, Saves $350,000
Company needed to create custom software for two customers on same development platform. Reaching this goal was difficult because customers employed disparate equipment configurations, and reconfiguring hardware with automated solutions cost more than double allocated budget limits.
Led engineering design effort that included logistics, contract manufacturing, procurement, and technical expertise to replace costly automation options with manual system that utilized existing, onsite staff.
While manual option seemed counterintuitive, system worked efficiently at below budget cost, saving minimum of an additional $350,000 for automated solutions.
Custom Software Solution Protects Customer Relationships Worth $2.7 Million
Company's customer back-office operations and engineering departments were using two versions of software that were incompatible. Moreover, different vendors made these two software packages, and there were no converters or translators available.
Analyzed two systems and created custom software solution that allowed both customer back office and engineering departments to continue to use current software packages, which protected customer relationships worth more than $2.7 million.
Separate Sales & Operations Functions Yield $25 Million in New Revenue
Company was asked to rebuild Middle East/North Africa (MENA) program office and reestablish organic operations capabilities in region. Request came as company was emerging from bankruptcy, and considerable friction existed between Virginia-based sales staff and operation's vice presidents because sales team was geographically separated from Texas-based operations team and had barely sustained operations during bankruptcy using subcontracted vendors when MENA operations' assets were largely sold off and its staff eliminated.
Rotated travel obligations among staff and built cooperative sales team environment by maintaining almost uninterrupted presence with sales team. Also enabled team to focus on core sales functions by relieving it of oversight duties for subcontracted operations services. Finally, established onsite, organic operations teams to serve MENA for all assigned programs.
These efforts improved customer service and margins and created up-sell opportunities that yielded more than $25 million in new revenue during second year.
Highly Effective Reorganization Reduces Project Lead-Times 31%
Custom software development and customer satisfaction were being negatively affected by long lead-times for network engineering products and services. Problem developed because hand-off mechanism between functional departments of engineering, procurement, installation, and commissioning was broken and beset by longstanding walls of separation between silos.
Reorganized wireless operations into product line organizational structure that combined functions into operations teams. Furthermore, placed engineering professional at helm of each project to lead it from start to finish.
These improvements reduced project lead-times more than 20%. Decreased lead-times another 11%, for total of 31%, by implementing additional changes based on employee feedback. New efficiencies freed up more than 5% of company's overall time and capital for other priorities.
Stronger Internal Controls Win Company's First $3 Million Prime Contract
Company needed to grow its prime contract work with Department of Defense (DoD) and Department of State (DoS). To fulfill this goal, company needed to improve its finance system, quality control documentation, and proposal quality in order to adhere to higher standard of integral controls required of United States government prime contractors.
Began by hiring new director of finance to implement compliance system. Then, formed cross-functional team and tasked it with rewriting quality control processes and procedures to meet higher prime contractor standard. Finally, required entire business development team to attend Shipley training and implemented gate review process that used operations personnel to generate proposals. These efforts positioned company to win its first prime contract worth $3 million.
Prime Contracts Replace & Almost Double Revenue
Company's prime contractor had poor management skills, which were increasingly requiring out-of-scope work that damaged customer relationships and company's bottom line. However, company's owners did not want to confront contractor because 90% of its revenue was generated through subcontracts to this division of a major Department of Defense (DoD) prime contractor.
Tasked sales and business development teams with executing12-month plan that entailed establishing company as a prime contractor and identifying new, large DoD contractor with whom to establish a strategic partnership. Within six months, company signed its first teaming agreement, followed by its first subcontract and then a long-term information operations partnering agreement.
After six more months, company effectively replaced $15 million in subcontract revenue with $28 million in new annual revenue by winning three prime and subcontracts.
Language Skills & Cultural Knowledge Provide Edge to Win $25 Million Contract
Europe, Middle East, and Africa (EMEA) sales market required technical support to capitalize on opportunity with Egyptian military. In addition, members of military's delegation to U.S. possessed limited English skills.
Used personal Arabic skills to assist team in creating presentations and conducting tours of customer sites to demonstrate company products. In addition, leveraged knowledge of Middle Eastern culture and daily life to help customer feel comfortable expressing concerns about receiving reliable power.
Personal language skills and cultural knowledge played significant role in company securing contract for almost $25 million, including unexpected additional work of building robust backup power plant.
Exceptional Due Diligence Avoids Unwise Purchase
Company was considering either purchasing a whole other company or one of its operating divisions. However, operating divisions were distributed across more than 100 sites throughout Afghanistan, and no one in sales or operations divisions wanted to inspect these sites.
Traveled throughout Afghanistan visiting, evaluating, and/or auditing almost every operating site, including finance, customer service, and engineering departments in Kabul. Furthermore, interviewed employees and customers, and monitored and researched competitors. Finally, implemented peer review process for findings before making final submission to decision makers.
Based on findings, company did not proceed with purchase, but instead bought approximately 30% majority-minority stake in company in order to help it mature relative to its competition and other developing markets, a decision which freed up more than $50 million for other initiatives.
Partnerships & Increased Communication Reduce Production Schedule 33%
Product for Department of Defense (DoD) customer in Iraq required components and services that necessitated that product be shipped back and forth to other Middle Eastern countries, which resulted in excessive production timeline that did not meet internal standards or customer's expectations. Decreasing timeline was challenging because shipping and transportation services in Middle East are severely limited.
After thoroughly analyzing problem, created and instituted three-part plan that included implementing satellite-based VPN that linked company offices to its vendors and subcontractors. In addition, forged new partnership with global freight forwarder in Middle East, and relocated selected personnel and equipment to customer's site as well. These changes reduced delivery times more than 33% without increasing costs.
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