Engaged for over two years to help drive initiatives in the client's services business unit, ranging from developing and implementing a new organizational structure, to evaluating TCO for an acquisition target, to putting in place a strategic roadmap to address industry-wide and internal dynamics. Partnering with Waterstone, the management team is transforming its Services unit, improving gross margins by 10 percentage points in the first 18 months.
A communications equipment manufacturer had just been acquired. A critical lever in the acquisition business case was to improve the financial and operational performance of the Services business unit, including its maintenance, professional services, and managed services businesses. The business unit was experiencing single-digit growth, sub-par operating margins, and was in the midst of an industry-wide technology shift. The new owners brought in fresh management but wanted to augment the team to quickly address external and internal dynamics with a pragmatic strategy and rapid execution.
Waterstone partnered with the leadership team to develop a business unit strategy and spent the next two years executing key strategic initiatives. Our initial engagement was the development of a business unit strategy for significantly growing operating income, with specific initiatives and execution plans, including mileposts by quarter, and the implications for shareholder value. We then worked closely with the client to help execute critical initiatives ranging from implementing a new organizational structure (in less than 10 weeks), to evaluating TCO for an acquisition target, to hands-on leadserhip in the launch of a major new service offering.
Business unit performance has impoved significantly. A Waterstone Partner became an extension of the management team and, over the course of the relationship, helped bring resolution to some of the businesses' most challenging issues.