Developing a Balanced Scorecard Reporting Framework

Our client was a professional Services company turning over around $3.2M p.a undergoing rapid growth but encountering frustrations due to internal team issues. Whilst the directors were technically brilliant, the organization lacked even basic systems and financial controls. The Managing Director was frustrated with the high level of staff turnover and that the same problems kept re-occurring

The brief was to identify a succession plan for the Managing Director via development and implementation of a strategic plan, development of key performance indicators, systems and processes, together with on-going coaching and support

Together with the senior management team ROCG developed a balanced scorecard reporting framework specifically tailored to meet the needs of the particular industry. Performance reports addressed financial profit and loss, cash flows and balance sheets, client feedback on a job by job basis, team member feedback as well as training and professional development needs.

Results

Some two and a half years later business had doubled along with staffing levels. A global company bought out the whole operation and paid a generous multiple of the current year’s earnings. All three equity holders were contracted to the new entity as senior executives

Succession Planning – Handing over to the Next Generation

This brief related to focusing on taking action to grow the business, systematize the operation, stop the Directors “stuffing the envelopes” themselves and implement a succession strategy to hand-over day-to-day management to the ”next generation”. This was a long established even management company founded nearly 30 years ago that hosts 50+ events each year and turns over about $3M pa. The firm supports its four working owners and employs three administrative staff plus casuals at events as required. Whilst the owners remained passionate, the organization was very “laisez-faire”, and management found it difficult to make even simple decisions. The owners were frustrated and not enjoying their business at the very time they felt they had earned the right to slow down and be rewarded for what they had created.

Key work steps extended to the definition of strategic plan elements and development process including a Vision Statement, definition of KPI’s to measure efficiency and financial performance, and accountabilities built into all job roles. The Directors were charged to co-ordinate special projects to drive new business via sourcing new venues and “product development” initiatives including an emarket strategy. ROCG produced an HR Manual covering legislative requirements, recruitment processes, position descriptions, training plans, staff review process, succession planning and so on. At the same time, on-going Market Research was carried out via surveys as well as staff being trained to be able to conduct and process this research in-house for all events. A Risk Management Strategy focusing on site-reports, OH&S inspections and check-lists, review of all insurance and contractual agreements with key stakeholders was implemented.

Results

A Proposal to conduct events for a new venue operator was presented. Feasibility revealed this would increase turnover by 30% and NPIT by $100,000 Expense controls built-into the financial forecasts showing further savings of $100,000 pa and ROI of 30+%p.a.. The founders’ daughter was appointed as General Manager on a 12 months performance based contract with salary packaging and profit share entitlements; The company was nominated as a finalist in the Victorian Tourism Awards

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