DON'T JUST BELIEVE WHAT WE TELL YOU.
See some real life case studies below and the results these businesses had from using Herrmann Advantage Consulting.
CASE STUDIES
CASE STUDIES
INDUSTRY: RETAIL
BUSINESS TYPE: Multi Store Retail
SITUATION: This is a family business. They began their engagement with our firm due to declining business and having been placed on their lenders "watch list". The owner had made several poor decisions regarding product placement and inventory purchase. The owner had also made sever other business decisions that had essentially turned his business into a new "start-up" that generated concern on the part of the lender. This company was engaged with Herrmann Advantage Consulting for a total of 13 months.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 15 (not including owner) | 15 |
| Managers | 2 | 2 |
| Revenue | $875,000 | $1,230,000 |
| Margin % | 29% | 60% |
| Gross Profit | $253,750 | $738,000 |
| Cash On Hand | $15,000 | $73,000 |
| Net Profit | $6,500 | $59,000 |
BUSINESS TYPE: Specialty Retailer
SITUATION: This is a midsize small family business. The business was losing money monthly and was not growing. The owner did not know why and did not know what it cost to provide their product to the consumer. A refinement of their processes, eliminating excessive waste and the development of a new sales compensation plan was completed. The new plan focused on growth in new business while retaining existing business.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 11 (including owners) | 11 (including owners) |
| Managers | 1 | 1 |
| Revenue | $1,200,000 | $1,400,000 |
| Margin % | 26% | 54% |
| Gross Profit | $312,000 | $756,000 |
| Cash On Hand | $9,000 | $27,000 |
| Net Profit | -$10,000 | $338,580 |
INDUSTRY: MANUFACTURING
SITUATION: This Northeast Wisconsin engraving and fabrication company is a family business. They began their engagement with Herrmann Advantage Consulting due to nearly non-existent new business development and production inefficiencies. The business was eroding at approximately 24% per year and had significant production problems due to antiquated equipment. The owner was nearing retirement age and, not only was there no transition plan in place, but the lack of business growth was jeopardizing the future of the business for the two adult children who were going to succeed the current owner.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 15 (not including owners) | 18 |
| Managers | 2 | 3 |
| Revenue | $2,840,000 | $5,370,000 |
| Margin % | 48% | 62% |
| Gross Profit | $1,363,200 | $3,329,400 |
| Net Profit | $340,800 | $1,032,114 |
SITUATION: This was a 25-year old Metals Industry business that had grown without plan or direction. The founding owner is nearing retirement and wanted to improve his business in order to retire in the next 3-5 years. Over a 3-year period, we achieved the results shown. The owner is now working with a broker while continuing our services on a periodic basis to ensure the gains made remain.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 26 (not including owner) | 28 |
| Managers | 3 | 3 |
| Revenue | $4,800,000 | $6,720,000 |
| Margin % | 32% | 49% |
| Gross Profit | $1,536,000 | $3,292,800 |
| Net Profit | $384,000 | $988,000 |
SITUATION: This was the Americas Division of a Global OEM Manufacturing Business. The business was experiencing financial performance challenges due to the economy, decreased demand for its products and an under motivated workforce. The Company HR leadership and America's President approached us about developing and executing a solution that involved changing the Workforce Culture and thereby improving engagement.
Over the next 18 months, we facilitated a process that redesigned their strategic workforce plan, executed that plan and deployed it to all segments of the Americas Operations. When the project ended we had:
- Increased Sales from $82M to $105M
- Reduced Takt time by 15%
- Reduced COGS by 22%
- Reduced G&A by 14%
All through developing and executing an appropriate performance focused Workforce plan.
SITUATION: This Manufacturing company was less than three (3) years old and was experiencing numerous delinquent or overdue account receivables. The owners were fearful of bankruptcy. The company desperately needed immediate help from a professional management company with small business expertise. We continue to work with this company with the significant results outlined below.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 10 (not including owners) | 11 |
| Managers | 1 | 2 |
| Revenue | $1,320,000 | $3,200,000 |
| Margin % | 46% | 54% |
| Gross Profit | $607,200 | $1,728,000 |
| Net Profit | $9,275 | $387,440 |
SITUATION: This is a family Metal Industry business. They began their engagement with Herrmann Advantage Consulting shortly after they lost 40% of their revenue when losing a client. The owners were nearing retirement age and there was no transition plan in place.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 7 (not including owners) | 13 (not including 2 owners) |
| Managers | 1 | 3 |
| Revenue | $7, 820,000 | $12,800,000 |
| Margin % | 32% | 44% |
| Gross Profit | $2, 502,400 | $5,632,000 |
| Net Profit | $552,480 | $1,689,600 |
SITUATION: This metal industry business was experiencing growth and stability issues due to the shortage of skilled labor and the basic job skills (Knowledge, Skills, Abilities, Experience, and Behaviors) KSAEB's of its workforce. Engagement levels were low and the shortage of skilled labor was having an impact on the productivity of the workforce. We were hired to improve business performance through the development and execution of a comprehensive workforce strategy that removed much of the challenges of the skilled labor shortage.
Our engagement began with our facilitating the development of a new strategic plan for the business. Using this new plan we facilitated the development and execution of a Workforce Success Strategy that included metrics, processes and a focus on strategy execution. This resulted in:
- KSAEB rankings of staff increased from 3.1 to 5.0 on a 5-point scale due to skill identification and alignment with strategic plans and in-house training
- Performance per employee increased from $307K to $338K after the first year, to $372K after the second year and to $407K after the third year.
- Beginning revenue was $22M per year. This increased to $25.6M in the first year and by the third year had increased to $31.3M.
INDUSTRY: SERVICE
SITUATION: This is a family business. The business was losing money monthly and could not sell more to become profitable. In fact, each sale cost them money. The "cash" in the business was the original equity from an online bank loan.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 16 (including owners) | 14 (including owners) |
| Managers | 1 (0wner) | 1 (Owner) |
| Revenue | $2,175,000 | $3,765,000 |
| Margin % | 13% | 28% |
| Gross Profit | $282,750 | $1,054,200 |
| Net Profit | -$32,000 | $295,176 |
SITUATION: This North American Financial Services Company had become a newly formed business following the acquisition and integration of 5 separate businesses. The Private Equity Firm that had created this reached out to us to assist with Post Acquisition Integration and the design and deployment of a comprehensive result producing Workforce Plan.
After 2.5 years the results of those efforts were:
- Increased sales from $600M to $850M
- Reduced COGS by 18%
- Improved productivity performance by 22%
- Increased Net Profit by 43%
INDUSTRY: Construction
BUSINESS TYPE: Distribution
SITUATION: This company was a long-term, established family business. The company wanted to grow and was experiencing some internal issues that prevented that from happening. Additional issues of labor, inventory, and production processes were causing the business concerns. We worked with this business for two years before we ended the relationship.
| CATEGORY | STARTING POSITION | END RESULTS |
|---|---|---|
| Employees | 18 (not including owner) | 25 |
| Managers | 3 | 5 |
| Revenue | $3,400,000 | $6,670,000 |
| Margin % | 36% | 60% |
| Gross Profit | $1,230,000 | $3,990,000 |
| Net Profit | $369,000 | $1,225,000 |