Situation
As a privately held Product Lifecycle Management (PLM) consulting firm this client hired Penn Valley to help them develop a growth strategy for their business and to build an infrastructure to drive and manage that growth.
Solution
PVG adopted a 3-part methodology to help them plan for and achieve growth: (1) debt restructuring, (2) development of key metrics and reporting, and (3) system implementation. By negotiating mutually favorable terms with a lender, PVG was able to successfully restructure the debt. Penn Valley also assisted with the implementation of a new accounting system and improved process definition. Finally, PVG established metrics to fully capture costs associated with providing services, and then developed a reporting tool for evaluating those costs on a regular, ongoing basis.
Impact
By establishing a regular process for defining, obtaining, and evaluating key performance measures, this client was able to translate this information into critical knowledge that helped them better manage resources and drive growth. The ability to understand what works best and continue to replicate it, while eliminating those efforts that fail to work, can have a remarkable impact on a business. Perhaps nothing states it as dramatically as this: company revenues are up 66% over the prior year, and profitability has skyrocketed, with quadruple-digit growth.