Case Study

Background

A private equity portfolio company in the finance and insurance industry had significant growth targets. The objective was to grow rapidly, primarily via acquisition, while ensuring that the top-line growth didn’t correspond with a proportional increase in costs. The leadership desired to achieve improved efficiencies and cost reduction by utilizing operational excellence principles in the key operational processes of the core business as well as the acquired companies.

Solution

Our team performed assessments as part of due diligence on the supply chain and warehouse operations of potential acquisition targets. Additionally, we assessed the transactional operations of the core business, including claims, new business, customer service, and the call center. The assessment identified opportunities for transformational projects and continuous improvement resulting in over a 30% reduction in operating expenses.

We additionally worked with the combined companies, post-integration, to identify significant additional opportunities for asset rationalization and expense reduction across the network. Also, a Lean Six Sigma Green Belt program was implemented in the core business to achieve quick-wins and short-term operational improvements. This program achieved a 10X ROI in just the first wave of projects.

The private equity company has since achieved a profitable exit.

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