4 Mar, 2024

Case Study: Business Turnaround in the Building Restoration and Conservation Industry  

By cmc

Recognising the wealth of skills and expertise within CMC’s team, the business owner of this unique building restoration and conversation company, sought out Jon Corns as their local CMC Business Adviser. They invited him to assist in revitalising operations and addressing performance issues that were impacting their company culture, focus and motivation, thereby aiming for a business turnaround and a change in its trajectory.

The Challenge  

The business faced several significant challenges including:  

  • Poor Cashflow: The company experienced cash pressures due to inefficient cash flow management.  
  • Over reliance on Owner: Sales were too reliant on the owner (a common obstacle many of our clients’ face), which limited scalability.   
  • Cultural Challenges: There was a lack of empowerment and accountability among employees, leading to inefficiencies.   
  • Data and Process Issues: They suffered from poor-quality data and inefficient processes.   
  • Employee Engagement: There were issues with employee engagement, impacting productivity and morale.  

The Solution  

After a thorough review of their business operations, Jon Corns implemented a comprehensive solution addressing various aspects of the business:  

Financial Process Optimisation 

He reviewed and revamped financial reporting and processes, focusing on invoicing, goods received, and revenue recognition. Monthly management accounts were created, ledgers were cleaned, and a large-scale data cleanse project was initiated to ensure accuracy and timeliness in financial operations.  

Sales Team Strengthening 

A Sales Director and additional sales personnel were recruited to lead sales activities. Value stream mapping of the sales process was conducted to identify key selling points in the sales cycle, enabling targeted improvements.  

Structural Changes and Talent Enhancement 

Structural changes were implemented, including top grading of talent and the establishment of clear role profiles and job descriptions. Empowerment and accountability were nurtured through regular forecasting, one-on-one meetings, and a shift in leadership and management style to improve the business culture.  

Knowledge Sharing and Process Optimisation 

Knowledge sharing sessions, including training sessions and breakfast learning sessions, were introduced to enhance employee skills and knowledge. Value stream mapping of processes was undertaken to identify and eliminate waste, leading to streamlined operations. Short interval management and daily huddles were implemented to facilitate quick decision-making and drive change effectively.  

Business Turnaround Outcome  

The results of these interventions were evident for all to see: 

  • Comparing the four months from May to August to the subsequent four months from September to December, sales increased by 10%.  
  • Gross profit saw a notable increase of 17%, while EBITDA surged by an impressive 64%.  
  • December marked the single biggest order intake month, reaching £2 million.  

Through Jon’s expertise and strategic interventions, combined with the trust placed in his guidance, the company successfully overcame its challenges, achieving substantial growth and operational improvements within a short timeframe. 

If you have any questions about this business turnaround project, feel free to reach out to Jon via the button below or LinkedIn.

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