Highlights
- We were brought in by the new CEO to assist him in a corporate rescue and recovery operation. Major action steps taken include:
- Developed and executed restructuring plan across all departments
- Recruited new sales team and rebuilt all marketing processes
- Reduced operating expenses by 50%, resulting in reliable positive cash flow from operations after 5 consecutive years of losses
- Sold company to a Private Equity firm.
Background
A publicly traded healthcare information systems company that had been in business for over 30 years. It supported 250 hospitals and medical centers, and was in severe financial distress. The company was losing $5 million per year with minimal capital remaining. While it enjoyed a strong historical reputation, the company’s sales and marketing practices were unsophisticated and ineffective. It had an aging and splintered product suite, deficient customer support, excessive executive turnover, and a very tired and disenchanted board.
Business Challenges on Arrival
- Stagnant growth due to lack of sales momentum along with material operating losses
- Minimum R&D investment in the past 5 years resulted in significant functionality deficits relative to the competition
- Outdated marketing materials and inadequate demand creation efforts
- Depleted sales team lacked motivation and was failing to bring in new customers
- Inconsistent sales and qualification process for leads and prospects
- Undisciplined use of CRM system to manage opportunities, monitor and forecast sales activity, and automate key sales processes
Actions Taken
- Took company private to eliminate SEC and other reporting requirements, significantly reducing financial and legal expenses and removing the need to disclose negative information that was being used by competitors against the company
- Recruited/restarted entirely new sales force. Rebuilt critical sales infrastructure including coverage model, comp plan, product and process sales training
- Established disciplined sales processes and uniform selling steps from lead qualification through close
- Cleansed and qualified more than 5,000 contacts in CRM system through intense call campaign
- Conducted wellness check of installed base of customers and instituted ongoing account management extending the sales reach through the customer support organization
- Launched new marketing strategy, incorporating review of competitive landscape, brand and positioning plan, market segmentation analysis
- Reinvigorated marketing efforts around a neglected but high potential product division, which offered the opportunity of serving key new market segments. Developed marketing initiatives to target these new markets
- Performed marcom gap analysis and cost/benefit assessment resulting in prioritization of total marketing spend
- Redesigned and relaunched entire company website including new branding, case studies, data sheets, and testimonials
- Developed and deployed new lead generation, email marketing campaign, product webinars, targeted regional and national trade shows, industry research portals, and new press releases
Results
- New business pipeline grew from $0 to $5 million within 90 days
- Rightsized company by 40% and reduced operating expenses by 50%, resulting in annual positive cash flow after 5 consecutive years of losses
- Directly assisted CEO in successful sale of the company to a Private Equity firm