Case Studies:
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SOS Case –A Strategic Reinvention
A small company that required minimal startup investment ultimately had seven competitors enter its field, most of which were started by previous employees. The company was failing. SOS was brought in as a turnaround consultant. Under SOS’s direction the company was able to accomplish the following:
- Took the company in a new strategic direction.
- Provide new offerings to existing customer basis.
- Sold off previous business offerings.
- Sold off previous business offerings.
Today, that company is an extremely profitable mid-sized company.
SOS Case –Using Hats and Ladders to Develop a Culture
Fast growth is not the panacea that many believe it to be, but it is a goal for which most companies strive. In one case, a company doubled in size from one year to the next—for 11 consecutive years. It was then divided into multiple separate companies. During the growth, to manage the massive labor influx, the principle of SOS developed a culture of “hats and ladders” wherein all employees wore a plain, red baseball cap with a red bill. Once eight key lessons had been ingrained in an employee, he or she was issued a new hat—red with a black bill—to signify progression to the next level of a 12-step hat ladder. Employees worked with conviction on their own time to advance to the next hat level in the ladder. The third level simply added a black button on the top of the hat and related to the key metrics of the business. The employees quickly rose to the challenge to gain the black button. This scheme facilitated growth in the company as well as a consistent and strong culture as it expanded to 35 states.
SOS Case –Establishing Management Capability
The owner of a very small company wanted to retire but was unable to sell his company. Therefore, he engaged SOS to assist in selling. SOS internally identified a person whom the owner did not believe could take over since the individual had no funding or management experience. SOS restructured the company and developed a simplified management report system upon which key operational metrics were focused. SOS trained the employee and, by utilizing its banking relationships, assembled a 100% financing plan whereby the employee could buy out the owner. Today, the business is extremely profitable, and all debt has been repaid, including the selling owner’s note.
SOS Case –Financial Pro Forma, Plans, and Metrics
SOS has developed hundreds of business plans and operational budgets. The company streamlines various reports and records to simplify reports for management with a focus on key metrics. The pro forma design is based on the key metrics for the success of the company. The company accounting and chart of accounts are also founded on these key metrics. Metrics can be simple but must be easily observed and measured. In one case, a saw and seal crew in Arkansas was obtaining only 80% of its bid performance. SOS reframed the daily production by placing a traffic cone on the side of the road. By seeing the visible cone as a marker of their daily objective, the crew could view their work goals in terms of physical distance rather than in hours of work.
SOS Case –Systems for Operations - Fix the Foundation
SOS possesses the tools, databases, and expertise to benchmark a company against its industry and competitors. To achieve a comparable analysis SOS normalizes and standardizes the company’s financial reports. After the analysis is complete SOS subsequently categorized the deficiency issues into focused categories and designates a budget for time and costs for each category. SOS works with personnel within the firm, to assemble various teams to drive changes within each category. Using this process in an extreme case, SOS worked with a firm with over 150 items of deficiency for two years of focused efforts .This firm is now has a net profit that places it in the top quartile of its industry.
SOS Case –The Start-Up Specialists
SOS possesses the tools, databases, and expertise to benchmark a company against its industry and competitors. To achieve a comparable analysis SOS normalizes and standardizes the company’s financial reports. After the analysis is complete SOS subsequently categorized the deficiency issues into focused categories and designates a budget for time and costs for each category. SOS works with personnel within the firm, to assemble various teams to drive changes within each category. Using this process in an extreme case, SOS worked with a firm with over 150 items of deficiency for two years of focused efforts .This firm is now has a net profit that places it in the top quartile of its industry.