Organization Transformation

image36

Overview

Gathering the right group for a dinner party can be challenging. Can Susan and Jim find something to talk about given their different political perspectives? Will Charlene and Jamal hold a grudge over the heated discussion that happened during the last soiree? Will there be enough space in the living room for everyone's voice to be heard? Transforming organizations has similar challenges and starts with a strategy for the right people, culture and structure. 

Perhaps more important is aligning these people with the right incentives and tools for success. DPO&Co supports clients in navigating cultural hurdles to build efficient teams that work towards a common goal of driving value throughout the organization.

CASE EXAMPLE

9-Week Project: Modeled employee utilization, queue wait times and efficiency gains at a large non-profit, designing a 25-FTE sales organization to support $103M of revenue at risk


Situation  

  • The client was highly dependent on internal and external sales teams to drive revenue, but had >30% employee turnover
  • Despite emerging from the recession, the client’s revenues declined 3.1% CAGR
  • The percentage of revenues being allocated toward mission activities was well below client target and other non-profits as a whole
  • The client had a large suite of mission and fundraising programs that did not fit well into the overall client portfolio
  • The competitive landscape within the client’s mission had gotten more challenging with more participants

Approach

  • Quantified gravity of vacancy issue
    • Identified when and why people left the client and estimated average time to fill a position
    • Calculated unmanaged revenue
  • Detailed sales operating procedures
    • Ran time studies for support activities and time requirements
    • Mapped processes, created RACI and tools to facilitate processes
  • Sized the organization
    • Identified mitigation strategies during peak and uses of capacity during off-peak
    • Benchmarked spans of control
  • Created structure & calculated cost
    • Wrote job descriptions & identified potential candidate pipelines
    • Totaled cost using client grades
    • Calculated hurdle rates the team must hit to justify the group


Impact and Results

  • Proved that annually there was about $103MM of unmanaged revenue at risk
  • Highlighted peak cumulative impact in July- Sept and trough during Jan- March
  • Identified criteria for support that served as paradigm for staffing going forward, which discussed cadence, methodology and scope of touchpoints
  • Job descriptions were used to hire qualified staff
  • Management had flexible structure that could be scaled up or down depending on whether value proposition was being met
  • Client created remote internal salesforce based on project, increasing revenues and covering more fixed costs, ultimately meeting mission objectives