Organization
Establishing Efficient Organization Structure And Processes To Drive $100MM In EBITDA Uplift
Conducted 12-week operations diagnostic to identify opportunities to streamline and reduce cost of client’s operations. To this end, Gotham: redesigned the corporate organization; surveyed 300+ front-line employees to understand their activities; visited multiple local markets and toured homes; mapped all processes front-to-back; and conducted deep-dive analyses of the client's operational performance to establish and quantify savings opportunities. Gotham identified opportunities to increase the client’s EBITDA by $100MM and developed project charters, role-specific KPIS, and a technology plan to jumpstart the capture of identified opportunities. The client launched the implementation effort immediately, with organizational restructuring implemented within 4 weeks.
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Establishing “One Company” Organization and Operations to Realize Cost Synergies at Direct Marketing Services Company
Conducted a 5-week operations diagnostic of a recently acquired portfolio company to identify cost reduction opportunities and establish organizational and operations end-visions. Gotham undertook an extensive analytic effort to reconcile and align data from 3 separate, independently operating systems corresponding to each business unit and create in-depth profiles of purchasing spend and labor efficiency. We also identified opportunities to improve salesforce effectiveness, including salesforce restructuring and a new compensation system. Finally, working with management, Gotham developed a “One Company” organizational structure to eliminate disconnect and facilitate savings opportunity capture within and among the 3 business units. Following the diagnostic, management launched efforts to capture these opportunities, which were expected to improve the company’s EBITDA margins by 6+ percentage points.
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Improving Profitability and Revenue Performance at Multi-disciplinary Engineering Services Firm
Conducted a 6-week operations assessment to turn around the company’s margin performance and position it for a successful exit in 2-3 years’ time. Analyzed historical project and employee utilization performance; developed target staffing leverage model; and created target business development model to improve efficiency of business development effort while driving profitable revenue growth. Our detailed assessment gave our client a solid understanding and roadmap of the levers to achieve the target margin performance (5-7% points growth); client requested Gotham to provide ongoing support through quarterly performance audits.
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Rapidly Capturing Manufacturing And Logistics Cost Reduction Opportunities At Ethnic Foodservice Products Manufacturer
Captured $1.2MM in operations run-rate savings in 12 weeks at an ethnic foodservice and retail private label products manufacturer by implementing shop floor management best practices. Gotham worked on the shop floor to: observe operations; identify potential improvement opportunities; provide immediate guidance to client personnel; and troubleshoot and pilot solutions. We improved line through from ~225 cases/shift to ~375 cases/shift, reduced fill weight by 3-7% to minimize overfill, reduce floor scrap by 50%; and eliminated expired rework scrap. To ensure sustainability and further improvements, we: trained client personnel, put in place process changes, tools, KPIs and reporting system; and identified/planned next set of improvement opportunities. Gotham also launched logistics savings capture by developing direct ship pilot and facilitating conversation between company sales teams and foodservice distributors.
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Determining Standalone Organization Structure And ERP System For Carved-out Specialty Chemical Manufacturer
Conducted a robust carve-out assessment of current situation and transition requirements to enable organizational and ERP decisions for a specialty chemical manufacturer. Effort included: interviewing corporate HQ, manufacturing facility, and sales personnel; evaluating ERP options and developing ERP recommendations; cataloging and establishing criticality and transition, implementation, and annual costs of business applications and IT infrastructure; and developing target organization structure. Our assessment allowed the client to make fact-based decisions and successfully transition to a standalone company.
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Establishing Quick Read On Cost Savings at National Coffee Roaster and Distributor
Conducted 2-week operations assessment of target to establish initial read on cost reduction opportunities. Despite limited access to the target’s management, plants, and operations data, Gotham was able to create a clear picture of the target’s cost structure in both operations and its DSD network. While the cost reduction opportunities needed to achieve our client’s financial target did exist, capturing those savings posed significant culture and business strategy challenges. Given the high valuation of the target and the significant hurdles standing in the way of savings, the client leveraged our work to make a fact-based decision at the early stage of the process to exit the auction process.
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