Construction

The Situation

In March 2008, this Boston-based construction industry organization was facing fierce market pressure and had very little brand differentiation. It had experienced a recession induced erosion in sales along with an explosion in inventory and had overextended its distribution business. Its manufacturing process produced an unacceptable amount of required rework and its business processes were highly manual and not set up to scale. And all this was before the recession which hammered the housing industry beginning in October 2008. We began our relationship as consultants and ultimately led the turnaround in the role of long-term interim CEO and Board Advisor (2008-2010).

Role(s)

Interim Sr. Leadership

  • CEO, Board Advisor

Consultant

  • Financial Advisor

The Work

We set to work with an immediate organizational repositioning from “Largest Inventory in New England” to “Best Customer Experience”. This repositioning permeated everything we did, from day one. Immediately, we began consolidating suppliers and reducing inventory with much more strategic purchases. At the same time, we launched a new high-end (and high margin) product line which differentiated the organization…and that was only the start.

The Results

  • Achieved 36% Profit improvement in FY09 (during severe recession)
  • Achieved industry’s highest customer satisfaction results with 20% improvement in feedback scores in the first 12 months, executed a full rebranding, won 2010 Best of Boston Award
  • Achieved 50% reduction in inventory levels by implementing customer segment-led product management strategy
  • Realized >4X ROI in year one after ERP implementation
  • Reduced sourcing costs by 20% as result of supplier rationalization
  • Planned and executed full-company reorganization and implemented performance improvement process
  • Reduced production errors by 80%; sourced, financed, and integrated fully-automated cnc production equipment with a newly streamlined production facility layout

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Overview

  • Construction Services
  • Interim Management

Engagement Team