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.

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If you are a business leader that recognizes the need for cultural change, we should talk. Call us at +1 (817) 705 -1313, let Alphanova Consulting facilitate the transformation of your people, processes, and culture.

Alphanova Consulting is a business transformation firm that specializes in cultural transformations and increasing performance. We differentiate ourselves due to our approach. We help companies adopt behaviors to continuously improve their performance and engage their people.

Start Improving Your Bottom-Line with Alphanova Consulting

Our approach is hands-on as we work with all levels throughout your organization during our engagement. We focus on middle market businesses in the manufacturing, service, construction, distribution, and aerospace industries.

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

 

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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