Case Study:
Insurance
Background
A start up medical insurance subsidiary funded with $200 million by the Fortune 400 parent to provide patients to the parent's hospital chain. Projected to be a large medical insurance operation within one year of funding. Assisted with the start up and establishment of initial operations, systems, and procedures. This was a very rapid growth situation commencing with nothing.
Business challenges on arrival
- No overall strategic or business plan or associated financial forecast
- Rapidly hiring over 1,000 employees to commence large scale operations without organizational or operational plan
- No financial, accounting, or internal control systems
Actions taken
- Assisted management in development of a strategic approach and associated business plan. Then developed the financial plan based on the business plan.
- Assisted in development and implementation of the organizational plan derived from the business plan for over 1,000 employees
- Designed and implemented accounting systems for large scale operations and to handle rapid growth
- Developed and implemented various financial management systems for cash, forecasting, and internal and external reporting
- Introduced strong internal controls
Results
- Developed business plan that in one year established operations to handle the growth from 50 employees to over 1,000. Implemented systems and procedures to handle such growth, including accounting, financial and reporting, and with adequate internal controls.