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Category Archives: Business Practices

Business Practices, Uncategorized

Navigating Late-Stage Risks in Acquisitions – The Impact of Timely Intervention

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Acquisitions represent both opportunities for growth and potential pitfalls. While meticulous due diligence is typically conducted to uncover any lurking risks, some threats manage to evade detection. Early-stage risks are those that lay dormant for a while, until they reach their tipping point in year 2 or 3 of the investment cycle where they often derail the progress. Late-stage risks are those that have already manifested themselves by the time of acquisition and will pose a significant challenge. Undisclosed risks, early or late-stage, are the nightmares of acquisition teams, as they emerge from the shadows post-close, revealing their full impact on the acquired entity.

Logically, late-stage risks and their impact should be obvious to everyone, and they often are. However, their presence may be accepted as “part of doing business,” or may have persisted so long they are effectively “hiding in plain sight,” where everyone (including leadership) has grown used to their presence. Until appropriately addressed, these late-stage risks will remain undisclosed and will continue to impact the business. Their consequences will eventually become dire and rectifying them comes at an exorbitant cost – to your finances and your reputation.

These risks may include reliance on tribal knowledge, business interruption, margin compression, unplanned capital expenditures, cultural misalignment, or technological obsolescence. Regardless of their nature, the common thread among them is the damage they inflict on operations and the urgency they demand for corrective action.

The cost of rectifying late-stage risks is staggering. It involves not just financial resources but also time and effort, often leading to disruptions in operations and potential harm to stakeholders. Moreover, the negative consequences resulting from these risks serve as a wake-up call, prompting a scramble for remediation.

But what if there was a way to preemptively address these risks before they spiral out of control? Enter OpWise with The ProAction Group, a strategic ally for PE companies in navigating the treacherous waters of acquisitions.

OpWise, a people, process, and resource approach from The ProAction Group, uses advanced analytics, industry expertise, and a results-driven methodology to empower PE companies to identify risk before the deal closes, and plan to address them before they wreak havoc. This is a pragmatic approach to identifying risk and estimating the time, effort, and resources necessary to mitigate or eliminate risk during post-close integration.

Here’s how OpWise, with The ProAction Group, can be instrumental in averting late-stage risks:

Early, Pre-Close Identification:
OpWise conducts comprehensive assessments of target companies, uncovering potential risks and vulnerabilities early in the acquisition process. Initial costs to address the risks are modeled, as well as the impact they will have on financials. By shining a spotlight on these issues, we enable PE firms to make informed decisions and take proactive measures to mitigate risks (before they write the check).

Strategic Intervention:
Armed with actionable insights, we collaborate with PE companies to develop tailored strategies to address risks and operational improvement. Whether it’s optimizing processes, enhancing compliance measures, or fostering cultural alignment, we provide practical solutions to address late-stage risks and bring stability.

Timely Execution:
We don’t just stop at planning; we ensure that strategies are implemented swiftly and effectively. Through meticulous execution and continuous monitoring, we help PE companies navigate the complexities of post-acquisition integration and mitigate risks in real-time.

Results Based Training:
Execution is not something we do to your team!  We use the opportunities to address risk or realize an improvement as a way to develop the team and find leaders hiding in plain site.

While late-stage risks may seem insurmountable, they are not inevitable. The ProAction Group can help PE companies identify and assess risks (early and late-stage) before the deal is signed and develop a post-close plan to mitigate these risks – safeguarding the investment and fostering long-term success by turning potential crises into opportunities for growth and resilience.

Business Practices, News

Successful Acquisitions Include Navigating Risks and Understanding its Nuances 

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Acquisitions can be both lucrative opportunities and potential minefields of risks. Understanding and effectively managing these risks is crucial for success. Among the myriad of risks, it’s essential to differentiate between controllable and uncontrollable risks, as well as early and late-stage risks. This nuanced understanding can make or break an acquisition deal. At The ProAction Group, we specialize in helping private equity companies navigate these complexities, ensuring informed decisions and managed risks.

Controllable Risks: Taking Charge of Operational Safety

Controllable risks are those directly influenced by behavior and operational decisions within the acquired company. For instance, safety hazards such as bypassing safety measures pose significant controllable risks. These risks stem from failures in appropriate setup and maintenance protocols. Addressing controllable risks requires proactive measures, such as reinforcing safety protocols, implementing robust training programs, and ensuring diligent maintenance practices. By identifying and addressing controllable risks, private equity firms can enhance operational safety and mitigate potential liabilities.  Addressing controllable risk normally requires minimal capex.  It requires attention.

Uncontrollable Risks: Managing External Factors

In contrast, uncontrollable risks are external factors beyond direct operational control, such as political instability or natural disasters. While these risks cannot be prevented, their impact can be mitigated through proper planning and preparation. Establishing response plans and training teams to handle unforeseen events, such as chemical spills or extreme weather incidents, is essential. By preparing for disruptions, companies can minimize the adverse effects of uncontrollable risks and maintain business continuity.

Early-Stage Risks: Preventing Potential Dangers

Early-stage risks represent latent hazards that have yet to manifest into tangible problems. These risks often exhibit subtle signs, such as disorganized workspaces or inadequate safety protocols. Addressing early-stage risks is cost-effective and relatively straightforward, requiring proactive measures such as training initiatives and infrastructure improvements. By identifying and rectifying early-stage risks, companies can prevent potential harm and avoid costly consequences down the line.

Late-Stage Risks: Dealing with Immediate Threats

Conversely, late-stage risks are imminent threats that have already materialized, posing immediate danger to employees and operations. These risks are characterized by visible deficiencies and complacency, such as ignored safety protocols or neglected maintenance issues. Rectifying late-stage risks is significantly more challenging, time-consuming, and costly, often necessitating extensive corrective measures and rehabilitation efforts. By addressing late-stage risks promptly, companies can mitigate harm and prevent possible damage to personnel and assets.

OpWise with The ProAction Group – Informed Decision-Making for Successful Acquisitions

At The ProAction Group, we recognize the critical importance of understanding and managing risks throughout the acquisition process. Our expertise lies in identifying controllable and uncontrollable risks, as well as distinguishing between early and late-stage risks. By leveraging our insights and methodologies, private equity can feel confident about their acquisitions with clear understanding of their target’s risk dynamics.

Business Practices, Uncategorized

Enhancing Private Equity Success: 5 Ways Organizational Development Can Improve Culture and Drive Profitability

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For private equity, success often hinges on more than just financial metrics. The role of human factors, encompassing organizational culture and employee engagement, is increasingly recognized as a critical component in driving profitability and overall success.  In The ProAction Group’s role of operational due diligence, organizational culture and development is a key focus of our read-out to Private Equity clients.  We’d like to share five ways in which Organizational Development (OD) can be a strategic lever for private equity firms to foster a positive culture and enhance financial performance.

  1. Cultural Due Diligence – Beyond the Balance Sheet:  Before investing in a company, private equity firms traditionally conduct a financial due diligence. However, incorporating cultural due diligence into the process is equally vital. Understanding the existing culture within a target company helps identify potential risks and opportunities. A misalignment between the existing culture and the firm’s vision can hinder post-acquisition integration and impact long-term profitability.  Identifying the misalignment allows the firm to address it.  
  1. Leadership Development for Sustainable Growth: Effective leadership is a cornerstone of successful organizations. Private equity firms can leverage organizational development to identify and nurture leadership qualities within portfolio companies. Investing in leadership development programs ensures a pipeline of capable leaders who can drive innovation, navigate change, and foster a positive corporate culture. A strong leadership team not only enhances organizational resilience but also contributes to long-term profitability.  Our OpWise™ approach, builds on continuous improvement and leverages improvement projects to create a leadership development machine.
  1. Employee Engagement – A Catalyst for Performance:  Engaged employees are more productive, innovative, and committed to the success of the organization. Private equity firms should prioritize employee engagement initiatives during and after the acquisition process. Through OpWise™, firms will be able to gauge employee satisfaction and identify areas for improvement. Fostering a positive work environment not only boosts morale but also enhances the overall efficiency and effectiveness of the workforce.  The ProAction Group offers a more effective approach through continuous improvement and by involving employees in the transformation… our approach leaves the firefighting culture behind and leads to the development of a problem-solving culture.  Mic drop. 
  1. Change Management – Navigating Transitions with Finesse:  Private equity transactions often bring about significant changes within organizations. From structural reorganizations to new technologies, navigating these transitions requires a strategic approach to change management. Organizational development can provide the framework and tools necessary to facilitate smooth transitions, ensuring that employees adapt effectively to changes. By minimizing disruption and uncertainty, private equity firms can expedite the realization of value and drive profitability.
  1. Nurturing a Learning Culture:  In a rapidly evolving business landscape, organizations must embrace a culture of continuous learning. Private equity firms can play a pivotal role in instilling this mindset within their portfolio companies. Organizational development interventions, such as training programs, mentorship initiatives, and knowledge-sharing platforms, can foster a culture of continuous improvement. A learning culture not only enhances employee skills but also positions companies to adapt and thrive in dynamic market conditions, ultimately impacting the bottom line.

Private equity firms looking to maximize returns and drive profitability must recognize the integral role of human factors in organizational success. By incorporating Organizational Development strategies that prioritize cultural due diligence, leadership development, employee engagement, change management, and a learning culture, private equity firms can create a positive ripple effect throughout their portfolio companies. The ProAction Group, using their OpWise approach, can provide the operational insight needed to ensure your targeted investments in the human side of business will enhance organizational resilience and position the portfolio companies for sustained success.

Business Practices

The Dance of Organizational Development: Leading with Purpose and Precision

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Audie Penn, Vice President, Business Development and Service Delivery

What exactly is development?  The root of the word develop, to unwrap, converges on a specific point.  For example, when I unwrap something, a gift for example, I find something specific.  A gift, if it is thoughtful, has meaning and importance.  The added benefit of unwrapping a gift is the association of the gift to the sender.  Now I have a permanent association of the gift and the giver, but the value of the item, if it is a good gift, still has significance to me.  I needed and wanted it.

The idea of general development gives me pause.  General development is like an unwanted gift that has no value to the recipient.  Why do I need this?  Do you notice something that I don’t?  Is this something you think I need in my work?  Are you disappointed in my performance?  What is it that I am missing? 

To avoid creating this spiral of negative thinking and worry, we must be precise in our development work. Development has a purpose, but we must be cautious with the idea of purpose.  A shared purpose is best; one that you and I both agree is necessary and desired (need and want from above).  If one suggests it is needed, but the other does not want it, the spiral is downward and lands in coercion.  However, if there is agreement and desire, the upward spiral has unending value.  What we learn in development creates its own forward momentum, and a continuous surfacing of opportunities and one learning leads to another and another and another.  This really is the fundamental power of continuous improvement or operational excellence. 

The dance between function and relation can be beautiful if the lead knows the dance.  Like the elegance of a dance partnership, the lead guides the partner to opportunity and watching the partner drift into intuitive interpretation of movement and purpose can be mesmerizing to those observing and can immerse the dancers into flow. Mihaly Csikszentmihalyi explores the 8 ideas of flow:

  1. Complete concentration on the task
  2. Clarity of goals and reward in mind and immediate feedback
  3. Transformation of time (speeding up/slowing down)
  4. The experience is intrinsically rewarding
  5. Effortlessness and ease
  6. There is a balance between challenge and skills
  7. Actions and awareness are merged, losing self-conscious rumination
  8. There is a feeling of control over the task

There is also a relationship between flow and innovation.  When we slip into a flow state, we can easily see relationships within our work that were impossible to notice when not in that state.  When the development process is working, and what we are learning we are also loving, the dance begins, the state of flow has opportunity to exist, and the innovations come more naturally.  As a leader, it is my responsibility to create these environments to release the potential of my team members and create a community in which everyone can flourish more fully.  When communities flourish together, immeasurable value is created.

Business Practices, Resources, Uncategorized

Playing Blind:  The Impact of Uncertainty on the Field and in Business

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Close your eyes.  Imagine you are a football player, stepping onto the field during a crucial game. The stakes are high, and the pressure is immense. Your heart races with adrenaline as you take your position.  You hear the thunderous cheers of the crowd. The energy is electrifying, and you are determined to give it your all.

But then, something strange happens. As the referee blows the whistle to start the play, you realize that you have no idea what the score is or how long you have been playing. The scoreboard is blank where the scores should be, and there’s no clock in sight to show how much time is left. You try to shake off the confusion and focus on the play ahead, but that nagging uncertainty lingers in the back of your mind.

Without knowing the score, you can’t gauge whether your team is winning or losing. You don’t know if you need to push harder and take risks to catch up, or if you should play it safe to maintain a lead. Every move becomes a gamble, and anxiety creeps in, making it difficult to think clearly and execute your plays effectively.

As the game progresses, you notice that your teammates are also affected by the lack of information. Some seem to be playing with a newfound sense of urgency, assuming that they must be behind. They take bold, reckless actions, hoping for a miracle comeback. Other players seem overly cautious, unwilling to take any chances, fearing they might jeopardize a potential lead.

The uncertainty takes a toll on team coordination too. Communication becomes fragmented, as each player tries to interpret the game’s situation based on their own observations. Without a common understanding of the score and remaining time, it’s challenging to work together seamlessly as a unit.  The absence of critical information begins to impact your individual performance as well. You find it hard to focus on the task at hand, and doubt clouds your judgment. Your confidence wavers, and you become hesitant in your decision-making on the field. Your plays lack the usual precision and timing, and frustration mounts as mistakes start to pile up. 

OK…you can open your eyes. Not fun, right?   Yet, this is the situation so many business leaders put their workers in… no posted metrics, no start-up meetings, no daily review.

The story of the football game without a known score or remaining time serves as a powerful analogy for business owners. It underscores the importance of having access to real-time data, analytics, and insights to make well-informed decisions.

At The ProAction Group, we understand that success in business hinges on making informed decisions backed by data-driven insights. Our mission is to help organizations thrive by identifying operational improvements, mitigating risks, optimizing procurement, and maximizing revenue and profits. In a rapidly evolving market, the ability to adapt and stay ahead is paramount, and that requires having a finger on the pulse of your company’s performance.

Much like the football player needed to know the score and time remaining to devise an effective game plan, businesses must rely on key performance metrics to make strategic decisions, and managers use key performance indicators to set appropriate expectations on the floor.  Our expertise lies in shedding light on the vital aspects of your business that might otherwise remain obscured. We provide the tools and insights needed to navigate confidently through the challenges, helping you stay agile and responsive.  

Furthermore, we work with your team to establish clear benchmarks of success, guiding you on what to measure and how to interpret those metrics effectively.

Education is also an essential part of our approach. We believe that arming your team with the knowledge of these key metrics empowers them to act decisively and collaboratively towards shared goals. By keeping everyone on the same page and speaking the same language of success, we help nurture a culture of achievement and continuous improvement.

The analogy of playing blind on a football field underscores the importance of having the right information to succeed. With our assistance, you can navigate the complexities of your business’s operational challenges with a clear understanding of your performance metrics, enabling you to seize opportunities, mitigate risks, and propel your organization towards lasting success. Together, let’s bring clarity to your path, so you can achieve remarkable results and secure a winning position in the market.  How can we help?

Business Practices, News

Are you Gambling with Your Portco Investments? The Crucial Importance of Addressing Business Risk

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Risk is inherent in all business transactions, especially when acquiring a new platform. The PE world has long-standing tools and resources to address legal, environmental, financial, and customer concentration risks. Operational risks (business interruption, unplanned Capex, margin compression, physical safety, fragility, “the rabbit hole” …) are often left to the personal experience of the deal team and the operating partner. Add to that, the buyer has a short and diminishing timeframe to evaluate all these risks; a lot can go sideways, fast (or slow… some risks may not manifest in symptoms until year 2 or 3)!

Cue Kenny Rogers and the popular 1978 country song, “The Gambler” for inspiration on the importance of making wise decisions. The tune emphasizes the idea that in life (and money making), one must be able to assess situations, calculate risks and make informed choices to succeed. The tune’s broader message underlines the importance of timing, intuition, and strategic thinking in navigating uncertainties. That is all great and good, but a lot can boil down to luck without targeted assessments and resources. We can get beyond the Gambler as we become aware of undisclosed risks, gain acceptance that they are indeed real, and then take purposeful action to mitigate, manage and eliminate!

In the context of operational diligence, and navigating the stages of risk awareness, acceptance, and action, you’ll need an expert assessment to reveal what is really going on within the operations of a company, when perhaps the financials don’t indicate trouble. It’s easy to believe that a company with healthy EBITDA, a humming production line, and happy employees will promise big financial returns – until it doesn’t.

The potential for undisclosed risk justifies a comprehensive assessment of an organization. Financial, customer loyalty, environmental, legal, regulatory, IT, and HR diligences are ubiquitous today. These areas may not uncover margin compression, business interruption, unplanned Capex requirements and other operational issues. 

The goal here of course is to identify the undisclosed risks that will impact the future performance and success of the target company. These risks are often hidden in plain sight and are often accepted with an unquestioning IIWII (“It-Is-What-It-Is”) attitude… such as that additional operation that takes place just before the order is shipped because no one has taken the time to identify the root cause and fix the error at its source. Here’s another risk, this one is late-stage, and this is a big one – when a company relies on a single supplier for its primary materials and hasn’t established an alternate supplier… they know their business is exposed to interruption risk, but they contentedly move forward, hoping things will continue to be OK. One recent seller explained how this risk was minor because they owned the drawings… when we asked to see one, they commented that the supplier keeps them.  Wow. Hope is not a valid response, and we need to call this what it really is – denial.    

In over 20 years of completing operational diligences, we have never killed a deal. We identify risks to create awareness, not to cause panic or worry about falling skies. We quantify the risk and estimate the effort and capital that are required to address the situation. While no investment is risk-free, accepting risk without a realistic and professional evaluation is a gamble with high stakes. Here’s a perfect example – the seller has built the business from the ground up and they know everything about the process. They have been involved from the beginning and everything runs smoothly because of their involvement in the daily processes. But what happens when the business is sold without evaluating this particular risk? The new owners will find it difficult or impossible to replicate the previous results because much of that success was due to the daily energy and expertise the previous owner brought to the business. The good news is, if we have 6 months or a year to institutionalize their knowledge, and we actively do so, the solution is inexpensive, non-invasive, and highly effective. In fact, in every case, the process to address the risk produces meaningful performance improvements. In EVERY case. If you wait to address risk – maybe next quarter, or next year, it will be more expensive, more invasive, and only partially effective by comparison. Which highlights the importance of acceptance. How often do people say, “I’ve been telling them about this problem for years, but no one listens to me!” When we accept that the risk as real, we can generate some data and bring clarity to the situation, and we can have years of meaningful improvement rather than years of loss.

The purpose of risk awareness, and recognizing risk acceptance, isn’t to walk away from the deal, but rather to create an action plan to manage, mitigate, or eliminate identified risks… to be well-prepared to handle the risks and challenges associated with the new company. This will involve collaboration with company leadership and management teams, legal advisors, and operational experts to ensure a comprehensive and well-executed risk management strategy.  This may also require interim leadership resources to ensure that risk mitigation is executed properly.

With risk, it doesn’t have to be a gamble. It all boils down to having the wisdom to fully recognize the circumstances and plan an appropriate response. At The ProAction Group, we know where to look for risk. Whether they’re obvious, hidden in plain sight, or those late-stage risks that won’t fully present until Year 2 or 3 of your investment cycle. We find that having knowledge of what can go wrong and having an action plan to address it will ensure the best possible outcomes. 

Business Practices, News

Leveling Up – Your Deals & Gaming Have a Lot in Common.  What Level are you Operating At?

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Dungeons and Dragons was the first game to bring the concept of character leveling to the mainstream market.  When you level up, you gain experience points and advance to higher levels within a game.  Leveling up is the primary way to measure progress and success within the game, and it’s a helpful concept in M&A as well.

Leveling up isn’t just a way to measure progress, it’s also a way for your company to compete where there’s more risk and higher margins – and that translates to better returns when you’re successful.  As experts in Operational Diligence, we have some ideas about leveling up through pre-close and post-close activities. 

Level 1 – Basic Level of Play

This is where all activity starts – with pre-close diligence activities.  The deal team is looking for risks and operational improvements, and may call on industry leaders for additional insight.  Once the deal is won, the Management team is relied upon to develop the value creation plan to realize the investment thesis, and the deal team takes on a new role as the corporate development team.

At this level of engagement, the risk of post-close negative surprises is very high. Had these negative surprises been called-out earlier by Operational Diligence experts, they would have been part of the value creation plan and likely would have lowered the cost of the deal.

The Basic Level of Play leverages the experience of the deal team and any industry leaders they bring in.  It is low cost, but will not consistently uncover undisclosed risks and latent value.

Level 5 – Significant Skill Set of Play

A level 5 is generally achieved by a player who has progressed beyond the beginner stages of the game.  Level 5 may represent a significant milestone, allowing the player to unlock new abilities, access new areas or questlines, or face tougher challenges.  In our work, Level 5 PEGs often have an Operating Partner or an external resource like The ProAction Group for pre-close activities.  The ops leader works alongside the deal team and looks for hidden risks and operational gains to get ahead of plan and to fuel the value creation plan.  We/they may identify dozens of areas for operational improvement, yet provide the one insight that implementing one single improvement post-close could provide significant scores for the team and begin the momentum for extreme value creation.

This elevated level of play brings focused and experienced attention to the process, identifying risks that the seller may not have disclosed (or even known about) as well as providing fodder for the value creation planning process.

Level 10 – Effort, Strategy, and High Scores

Players who reach the higher levels in the game get amazing skills and can fight dragons, take castles, and save the distressed!  For the gamer, this is endlessly interesting and exciting.  They get to explore the potential of their character and take over the world!

In our real world of M&A, achieving this level allows us to go into a deal with our eyes open, our models accurate, and with a value creation plan that is clever, practical and designed to drive a real win.  We are in a position to truly explore and tap the full potential of the platform. 

This level often means using an Operating Partner with subject matter expertise for both pre-close and post-close activities – the “been there done that” for several businesses in the target’s vertical.  High achievers in pre-close Operational Diligence will:

  • Calculate Capacity – as currently run, and with improvements in place.
  • Recast Inventory required to run the business (this is the canary in the coalmine…)
  • Segment SKU/service, Customer, and Inventory profitability.
  • Test for numerous risks that would show up in year 2 or 3 if not addressed early.
  • Recast CAPEX requirements.
  • Benchmark sourcing rates and costs.
  • Develop a detailed financial model integrating the addressed risks and operational improvements.

Operating as a Level 10 pre-close also entitles you to bonus play – and post-close magic:

  • Integrate financial model and budgets into expectations for the leadership team.
  • Develop a full value stream and/or process map to expose any additional opportunities and risks.  Understand how the money is made, how to satisfy demand, and how to operate the company among the sponsor, the leadership team, the management team, and the operator expectations.  (This step might bring you to level 15 on its own!)
  • Conduct a formal value creation working session to address identified risks and opportunities.

Don’t we all want to play at Level 10 and access the magical post-close play?  At The ProAction Group we bring Level 10 from day one.

We can implement changes that will get you ahead of plan in the short term, development containment plans to manage risk, stage, and stagger operational improvements based on ROI, confidence, time required, and bandwidth.  We’ll show you how to leverage your opportunities to address risks and improve performance, while developing new leaders and a problem-solving culture.

 Contact us today to Level Up – right to the bonus round. 

Business Practices, News, Uncategorized

What Your Business and Speed Skaters Have in Common and Why You Need to Up Your Ante With a Good Coach

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Timothy Van Mieghem – The ProAction Group

The Olympic games are nothing short of inspiring.  The backstories, the challenges and the opportunities for glory all come together on the world’s stage for these athletes. 

I find speed skating especially incredible and relatable to my line of work.  Speed skating is a racing sport with the primary aim to complete each circuit in the fastest time possible. To win a race, the athletes must adopt a particular set of techniques including balance and positioning – and then add speed. 

The technique, process, and analysis to reach this level of magic is analogous to preparing an organization to win at the profit game (which is my Olympic sport). 

Let me explain.

The road to operational excellence requires balance and positioning of a different kind.  All organizations race for results to earn gold for investors by increasing the internal rate of return, meet loan covenants or personal gain.  As in speed skating, organizations must find the right balance and positioning of whatever the opportunity for improvement is.  If you can identify it, it can be quantified.  Once it is quantified, we can plan for it.   Once an organization has identified and quantified the opportunity for improvement – then speed comes into the equation.  How fast and for how long?

At The ProAction Group we call this the ProActive Profit Process — and we’re excellent coaches.  We can help identify and quantify what needs to improve, and then tell you how fast you’ll need to go to achieve success sooner.  Like any great coach, we’ll work the formula with a proven process that lands you on the winner’s podium in your industry’s competitive landscape (and it won’t take four years to prove it).  We’ll map out the implementation at the agreed speed to assure you that you’re covering the distance between where your organization is now and where it needs to go.  Beyond implementation, we’ll be there to institutionalize changes for sustained results.

Balance and positioning at a high rate of speed is challenging for any organization, however with a good coach, with a proven track-record to guide the way, makes the difference.  Let us help.

Business Practices

Opportunities in Crisis: Implementing and Measuring Supplier Changes

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In our previous posts, we focused on how to objectively identify underperforming suppliers and constructively negotiate needed changes in supplier relationships. However, reaching an agreement on changes and actually seeing them adhered to are two different things. While we are generally trusting of supplier partners, in cases like these it is essential to “trust but verify” that the new elements are being implemented by both companies and accomplishing the desired results. Here again, data is power.
Continue reading Opportunities in Crisis: Implementing and Measuring Supplier Changes →

Business Practices

Opportunities in Crisis: Negotiating with Underperforming Suppliers

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In the first of our posts on crisis-related supply chain opportunities, we examined the benefits of addressing underperforming suppliers and how organizations can approach the process. In essence, that first step is about identifying perceived supplier issues and then resolving to act. Once that decision is made, the word “perceived” should be eliminated and the groundwork for negotiating can begin.

Continue reading Opportunities in Crisis: Negotiating with Underperforming Suppliers →