CASE STUDY: Family Owned Business

Company
A multi-million dollar, family owned, Michigan-based recreational vehicle (RV) sales, parts and service business

Challenges
Steady four year decline in sales and profits, lack of credit line, overdue payables, excess inventory, untrained leadership and fragmented efforts with no bottom line results.

Solution
Define ownership’s vision and goals; profile leadership skills, talent, authority and responsibility. Assess clients, market, past performance and existing conditions. Create core leadership team “road map” consisting of key performance requirements, incentives, accountability scorecards and reporting process.

Objectives

• Develop strategic reinvention plan and new organizational structure
• Create management team responsibility scorecards
• Set up cross-organizational improvement team to share resources and minimize dysfunctions
• Provide personal coaching for owners and other managers to lead new direction
• Reduce cost of services and inventory; improve business revenue

Benefits

• Net gain of $86,000 in spite of reduced sales of 25% in depressed economy
• Reduced inventory costs 75%
• Reduced payables by 70%
• Received line of credit offers from two financial institutions
• Created milestones for sales to increase performance