A training company had been generating over $510 million in annual revenue. It had purchased several businesses, trusting that diversification would reduce risks and create new opportunities. That didn't work for various reasons. Because of market disruptions, revenues plummeted and company lost over $105 million in one year.
A turnaround CEO was hired, and we partnered with him to launch and provide leadership to the implementation teams. These teams were responsible for reducing costs, streamlining operations, and developing the new products.
We started the turnaround by identifying those activities that were core. This involved refining a unique value proposition and identifying those activities that tied directly to that proposition. This is where we chose to invest. We then set about trimming everything else. That included selling off many portions of the business.
Product development was our key enabler. In other words, it was key to our future. We redesigned our product development process to align with best practices.
We identified and analyzed our support processes. We compared our costs with industry benchmarks, and ultimately outsourced our supporting functions (e.g., technology, customer support, and manufacturing.)
The company climbed back from a net income loss of $105M to $25M in profits and has remained profitable since.