Driving Operational Efficiency and Growth: A Service Industry Case Study

Published on August 29, 2024

In 2021, Bigham Consulting was approached by a leading service-oriented company operating across Europe to address pressing operational and market challenges. Despite a strong market presence, the client was facing significant inefficiencies, particularly in emerging regions, which were hampering profitability and customer satisfaction. Additionally, the company needed to prepare for a major upcoming merger while maintaining growth and operational consistency.

The Challenge

The client’s growth in certain regions was not matched by consistent service delivery across its international locations, leading to noticeable operational inconsistencies, particularly in growth areas across Europe. The lack of a standardized approach was impacting customer retention and overall business performance. The leadership team recognized the need for a comprehensive transformation to align operations, optimize costs, and prepare for a successful merger.

Bigham Consulting's High Impact Management Approach™

Bigham Consulting implemented its proprietary High Impact Management Approach™ to drive the transformation. This approach is built on four key diagnostic areas: Peer Group Analysis, Financial Analysis, Human Capital Analysis, and Operating Model Analysis.

• Peer Group Analysis: We benchmarked the client’s operations against industry leaders, identifying high-performing locations and pinpointing regions with service delivery inconsistencies.
• Financial Analysis: Our financial assessment focused on uncovering key cost drivers and optimizing capital allocation, with particular attention to fleet management and procurement efficiencies.
• Human Capital Analysis: This analysis revealed challenges in talent retention and workforce development, which were contributing to the operational inconsistencies across different regions.
• Operating Model Analysis: We evaluated the client’s existing operating model, identifying inefficiencies in service delivery and opportunities to standardize processes across locations.

Strategic Planning and Transformation Execution

Following the diagnostic phase, we developed a comprehensive strategic plan, focusing on KPIs that were critical to shareholders, such as enhancing shareholder value and optimizing the operating model. The transformation strategy was divided into two main areas: Front of Business Operations and Support Functions.

• Front of Business Operations:
  • Product Development: We aligned product development processes with market demands, ensuring that the client’s offerings met customer expectations.
  • Marketing and Sales Growth: A new marketing and sales strategy was developed, targeting underperforming regions with tailored approaches to drive growth.
  • Customer Service: The introduction of a new digital platform streamlined customer interactions, leading to a more consistent and personalized service experience across all regions.
• Support Functions:
  • Cost Management: We optimized support and service provider costs, including renegotiating supplier contracts and improving fleet management practices.
  • Board Governance and Transparency: Improved governance structures and transparency measures were introduced, enhancing the board’s oversight of operational and financial performance.

Results and Impact

The transformation initiative delivered significant improvements across the client’s operations:

• Revenue Growth: A 4% increase in revenue was achieved, driven by organic growth in all service lines and enhanced customer retention.
• Profitability Enhancement: The client saw a 12% increase in adjusted EBITDA, with improved margins due to optimized cost management strategies.
• Operational Consistency: Standardized processes and successful replication of high-performing region strategies led to more consistent service delivery across Europe.
• Merger Preparedness: The client was well-prepared for their upcoming merger, with aligned operational models and systems, ensuring a smooth transition and maximizing value from the merger.

Conclusion

This case study highlights how Bigham Consulting’s High Impact Management Approach™ can drive meaningful transformation in complex, service-oriented organizations. By focusing on strategic planning, operational optimization, and workforce improvement, our team successfully positioned the client for sustainable long-term success. The transformation not only addressed immediate challenges but also ensured that the client was well-prepared for future growth and operational efficiency.

Ready to Transform Your Business?

If you’re interested in learning how Bigham Consulting can help your organization drive sustainable growth and operational efficiency, contact us today for a consultation. Let’s work together to unlock your business’s full potential.