Situation
A construction company was concerned that they were underperforming the competition and wondered why. The financials were not segmented by business line, so performance was difficult to ascertain. Additionally, management and the Board were not aligned on expectations.
Solution
A review of the strategy was conducted, financials were reviewed and segmented by business line and results were benchmarked to competitors. As it turns out, the core business was performing in a comparable manner to other similar businesses. However, the company had entered a number of unrelated markets, hired staff and were investing heavily with no clear business strategy.
Results
- Management and the Board became aligned on strategy and earnings expectations
- Millions of dollars of spending unrelated to the core business were identified and either halted or targeted for quick wins
- Key risks in growth areas of the business were identified and addressed through targeted hiring to close skill gaps
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