This is the fourth blog in the series “Staying Competitive in a Tough Private Equity Market.” The first post in the series provided recommendations of essential elements that private equity firms should implement to stay competitive. This blog will focus on the recommendation: Improve the business.

The due diligence process should have uncovered the potential opportunities for improvement. Refer to our blog post: Building a strong due diligence process.

The importance of uncovering these opportunities is that if improved upon, the business can reap bottom-line impact in a very short timeframe. Key performance indicators such as cash flow, EBITDA, profitability, sales, and administrative expenses can be significantly improved.

Focus on the following three aspects of the business to have the most significant impact on performance: People, process, and culture.

People – Businesses are successful because of the people behind them. Make sure you have the right people in the right seats on the bus. More specifically ensure you have a strong leadership team. The leaders within the organization must display certain behaviors in order to lead effectively. Here is a blog discussing leadership principles we recommend.

Process – Most organizations, no matter whether product or service have a significant amount of inefficiencies or wasted time in their processes. Look at the illustration below:

Would you believe that as much as 95% of the time an order is in process is spent on non-valued activities? That means that there is an enormous amount of opportunity to reduce that time.

Download our Infographic – “The Case of Lean” to understand why operational excellence could benefit your company.

Culture – Each organization needs to develop their culture identity. This identity should be based on the business’s purpose, the values they adhere to, and the pillars that have made the business successful.

The aspects we explained above are where we focus our approach on transforming a business. Next week, we will publish the final blog of the series: Partner with the Leadership Team.

If you are experiencing a toxic culture and would like to talk about your specific situation, schedule a call today.

Share our Post:

SIGN-UP TO RECEIVE USEFUL CONTENT

How does your business compare with world-class performance? Take our business self-assessment and find out.

Read more related Blogs…

5 Bad Reasons to Promote Leaders [Pt. 2]

5 Bad Reasons to Promote Leaders [Pt. 2]

This post is part two of 5 Bad Reasons to Promote Leaders. In part one we focused on reasons that are reflective of the leader's work ethic. This week we share reasons that are reflective of the hiring manager's perception of the leader's character. Here are the...

read more
5 Bad Reasons to Promote Leaders

5 Bad Reasons to Promote Leaders

When touring different businesses and during the early stages of working with our clients we often see gaps in their leaders. One of the main reasons we observe these gaps is because leaders have been promoted for the wrong reasons. A Careerbuilder survey of over...

read more
5 Signs You Do Not Have the Right Leaders [Pt. 2]

5 Signs You Do Not Have the Right Leaders [Pt. 2]

This is part two of 5 Signs You Do Not Have the Right Leaders. Part one focused on philosophical and abstract signs. In this post, we will focus on more tangible and execution related signs: 3. Negative leadership behaviors – This one could be harder to spot,...

read more
5 Signs You Do Not Have the Right Leaders

5 Signs You Do Not Have the Right Leaders

Having the right leaders on your team has tremendous impact on the success of your business. Unfortunately, we see many businesses promoting or hiring employees into leadership positions for the wrong reasons. These reasons range from strong technical capabilities to...

read more

GROW YOUR BUSINESS PROFITABLY

We help manufacturers achieve and sustain operational costs reductions of 20%+, improve on-

time delivery to 99%+, and reduce defects to improve product quality to 99%+. These changes

help our clients grow company profit margins by up to 25%.

We are committed to going above and beyond our tour of duty. Your service experience with our company should reflect our bias towards adding value at all times.

Contact Us

817-705-1313

info@alphanovaconsulting.com

 

More Info

Fort Worth, TX | © 2018 Alphanova Consulting All Rights Reserved | Powered & Designed by Citryn, LLC

We are committed to going above and beyond our tour of duty. Your service experience with our company should reflect our bias towards adding value at all times.

Contact Us

817-705-1313

 

info@alphanovaconsulting.com

 

More Info

Fort Worth, TX

© 2018 Alphanova Consulting All Rights Reserved.

Powered & Designed by Citryn, LLC