Contract execution back to profitability for a B2B company

Our client renewed a service contract with Airport

Challenge

  • Our client renewed a service contract with Airport
  • Former contract was largely loss making (-3% EBIT)
  • New contract is based on 3% EBIT (theorically)
  • After new contract disastrous start (loss of 600K € in the first two months) CEO mandated us to review processes, tools, management rituals and management structure to bring contract execution back to profitability as soon as possible.
  • On top, CEO asked us to provide him with a tool enabling him to forecast financial results before month ends.

Methodology 

  • Development of a set of appropriate KPI’s
  • Role and responsibilities review at all management levels and subsequent management structure reduction
  • Management rituals implementation
  • Raised Performance obligation (50%) and improved productivity

Results

  • 3rd successful completed turnaround withing the same client

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