Absolute was an investment of The Innovation Group plc (TIG). It was a small disruptive insurance claims BPO organisation that had secured investment from TIG to significantly develop the business. TIG invited Work Source to advise on their on-going investment and following a due diligence review, asked Work Source to oversee the business on a part time interim basis as a condition of the final tranche of their conditional investment, in order to safeguard their interest. TIG sponsored the project and our stakeholders were the two principals and their team of twelve claims specialists
TIG had become concerned about the growth and performance of the business and asked Work Source to undertake the Interim CEO role to mentor and direct the two principals and the business team to create shareholder value. Our Principal Consultant, Zed Vakil, was appointed to this position and charged with stemming losses and turning around the business, setting it on target for growth, positioning it for a buy out by TIG or a third party, and providing for a good return for the principals and the investor.
The situation on arrival was that the company was loss making at the rate of around £750,000 pa. The two principals were also disagreeing over the course of the business and their relationship had descended into an adversarial one. There was little in the way of professional business development, marketing and executive governance and nothing in the way of positioning the business for growth.
Zed provided immediate leadership to the business, first concentrating on positioning the company to break even within the first 6 months by stringent cost control strategy. This was achieved by mentoring the principals and instigating a detailed review of monthly management accounts, taking immediate action on remedies required on costs, debtor control and a detailed analysis of the operational requirements of the company each month to meet objectives.
Zed instigated a proper and robust organisation structure that was fit for purpose, and drove a full business development, product market fit, re-branding, marketing and CRM programme. Zed mentored the two principals to manage the business against revenue and profit drivers and other kpis, such that the business was more focussed towards the customer during which there was a sustained period of new client acquisition of large insurance companies claims divisions.
Within 12 months the business was out performing expectations and on our exit was showing 200% revenue growth, a run rate of £2.5 million and a 19% net contribution.