Origen Consulting

Business Challenges. Practical Solutions.
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Business Enhancements
 
1. Problem: An established, privately owned Health Care Company found that it was growing less profitably.

2. Scope: This project covered a retail store, service and delivery department, and the business office. They required a business assessment, an operational improvement plan, a profit retention plan, and a strategy to keep the business on track.

3. Business Context: The Company is known for outstanding customer service and for their outreach program for hospice and special needs homes. Their service area is the largest in the United States and covers rural areas with unmarked dirt roads in several state jurisdictions. Their fleet of vehicles was aging but well maintained considering the challenges of a cross-compartment environment.

4. Constraints:
The overarching constraint to the project was that the company was not willing to reduce services to the most needy of their customers. This presented a unique challenge because the cost/performance profile of these customers reflected a net loss.


Another constraint was the reluctance to change to a more efficient business information system. Implementation of the existent system was painful and although it did not meet their needs, everyone was familiar with the work-arounds and tolerated the extra work.

 

5. Solution Summary: Our assessment prioritized the needed improvements and we took a three-pronged approach.
Administrative solutions included training, job descriptions, performance evaluations, and a formal organizational structure.

Financial Management solutions included a profit retention strategy and a business investment structure was designed, product pricing was recalculated, an annual operating budget and cash management system was implemented, and the accounting package was linked to their accountant to speed reporting.

Operational solutions included hyper-optimizing the delivery systems, product mix, and service timeframes. An improved routing & dispatch system using GPS was implemented that improved customer satisfaction. The retail store was optimized and bar code scanners were used to speed transactions. Finally, a new business information system was implemented that improved billing and claims payment.
6. Financial Results: Inventory was reduced 20% and vendors delivered supplies Just-In-Time which resulted in a significantly improved cash-to-cash cycle. Gross sales were reduced and the profitability increased annually by 3%. The entire project was paid from cost savings, to include a new business system which management insisted on having after seeing the other results.
 
Strategy Development
 
1. Problem: A very successful web-based, direct-to-consumer Company in the health and beauty sector needed a new operating strategy for their growing distribution business.

2. Scope: The Company required a set of prioritized recommendations for the effective and efficient layout/operation of their consolidated distribution facility, an Assessment of operations, document observations and findings, and an list of identified best practices for picking/packing/shipping of products in the most efficient method utilizing the most appropriate technology. Additionally they requested assistance in space planning, equipment recommendations, procedure documentation, and personnel skills evaluation.

3. Business Context: The Company serves an international client base and maintains product development teams in the US and overseas. They operated in several states and felt that it would be more advantageous to consolidate distribution, but they were unsure of where and how to best accomplish this.

4. Solution Summary: Our assessment prioritized the needed improvements and we implemented the following solutions.
Their distribution facility network was rationalized and consolidated. We designed four operating options for the remaining facility which provided for growth and expansion to new product lines.

The Company benefited greatly from a comprehensive best practice structure which permitted them to accommodate profitable growth of over 300% without increasing their distribution facilities and with minimal overhead increases.
5. Financial Forecasts: This project was conducted under stringent confidentiality rules due to the competitive nature of this industry. We can say that the new strategy was successfully implemented by the Company and they experienced significant financial & operational improvements.
Not-For-Profit
 
1. Problem: Two not-for-profit organizations, each very well respected in their field, saw tremendous synergy in joining forces.  They decided to merge, but they were not exactly sure how to proceed. 

2. Scope: The "new" organization required a business strategy, merger strategy, a management plan, and an improved business understanding among the employees.

3. Business Context: We take a very strong client-centric approach to our work.  If a course of action is good for the client, even thought the consequences for us are unclear or adverse, we do what is best for the client. 
 
The Executive Teams of these organizations had never met.  It was crucial to get them together and explore the interpersonal dynamics. 

4. Solution Summary: Our assessment prioritized the needed changes and we presented the following solutions.

A new break-even analysis was conducted, cost structures were changed, a job costing & estimate system was developed, and purchasing program were established.
It was imperative to have the strongest elements of each organization leading the new team.  An organizational transition plan was developed.

A new 5-year business strategy and accompanying plan was developed and management committed to using this roadmap. Periodic Review & Analysis sessions ensured the plan was on track and permitted sufficient time to respond to fluctuations. The entire Company team recommitted to helping the Company grow and prosper.

We insisted that both management teams meet in person to discuss the merger.  We scheduled a 5-day meeting for the discussion.   
5. Project Results: We always take the client perspective in any engagement.  From the client's perspective, their discussions were successful...they didn't make a serious mistake by going through with the merger.  
 
When the Executive Leadership Teams met, it was "oil & water" from the beginning.  They didn't like each other, they had different visions, and clearly they had different expectations as to how the merger would be structured.   
 
Although the engagement didn't work out for us, it did work for the clients.  Upon our insistence that they meet and discuss the merger, they realized that it wasn't going to be a good fit.