Name

Overcoming underperformance and doubling EBITDA in B2B environmental services

Environmental services, B2B

Situation

Market leader in environmental inspection, testing and consultancy, with £50m revenue and 600 employees operating in 6 European markets.

Key SBU underperforming and in need of fast-track turnaround given overall impact of SBU on EBITDA and criticality of timelines. Intensive coaching of functional heads whilst recruitment of new SBU head was run in parallel.

Approach

Two-stage approach using fast-track toolkit:

  • Fast-track Scoping: one week review of all key business areas including organisational review; assessment of core processes; benchmarking vs best practices; evaluation of performance improvement potential and agreement of targets; and design of project delivery approach.
  • Fast-track Implementation: the approach included the following key elements: 
  • Establishment of a PMO (Programme Management Office) including governance structure and processes
    • Formation of project teams centred on each key functional area
    • Use of workshops, training and coaching to promote engagement and the development of a more proactive, performance-centred culture
    • Re-engineering of key processes to deliver a step-change in service levels and cost-to-serve
    • Revision of performance standards across all key functional processes
    • Zero-basing of resources following implementation of process improvements in order to crystallise productivity increases
    • Development and implementation of best-practice management operating systems and coaching of managers from front line up in their application in order to drive performance

Once the new SBU head was on board, supporting their induction and carrying out an audit to assess improvements made and identify next steps in further consolidating and improving performance.

Results

Doubling of EBITDA to bring it into double digits, including:

  • Increased staff utilisation in the field, in laboratories and in administrative areas
  • Improvement in customer service levels
  • Development of fast-track service offering for clients with time-critical requirements

Handover to new SBU head included a review of all improvements made and action plan to add a further, absolute 5% to EBITDA.

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