Water Filtration Solutions
This client is based on the East Coast of Australia, manufacturing and selling complex water filtration systems for large-scale infrastructure projects. They provide project-based solutions for State and Local governments, as well as major builders and developers.
Background
Our client had grown steadily for many years and was starting to win larger projects in the public sector. However, their approach was predominantly reactive, relying on a limited network to stimulate business. A diverse range of products and customer types created a level of complexity that resulted in a lack of focus for a business of this size. Marketing was basic, the sales process was stagnant, and revenue growth had stalled. Furthermore, whilst dealing with medium-sized projects, the business was margin constrained.
The Opportunity
Our client required Specialist support to develop a strategy to scale their business and maximise profitability. The opportunity for us was to take a deep dive into their business and identify the sweet spot in the market where they could focus their efforts — which required rigorous analysis of “where to play” and the investment needed to “win”.
The Process
A Strategy Specialist was engaged to lead the Discovery Roadmap, a strategic planning process to deliver a strategy and plan for implementation. The Roadmap defined the commercial strategy for their primary revenue sectors and the investment required, with the aim of doubling business revenue in three years.
After this process was complete and with our assistance, the strategy and plan were communicated to all levels of the organisation until everyone was unified around the vision. Implementation did not start until we had the full buy-in of the organisation.
Implementation of the Roadmap strategy occurred over a three-year period, with subsequent strategies still ongoing. As part of implementation, a Marketing Specialist was utilised to reposition the brand and website.
As the brand established itself as a leader in this industry, a CFO Specialist was placed in the business to renegotiate all financial arrangements, improve cashflow and receivables, and vastly improve reporting.
While this was ongoing, the business continued to grow and win larger projects, increasing the strain on the management team. Seeing this challenge, Strategic Specialists Group placed a part-time Chief Executive Officer in the business to manage operations at a P&L level, keep the management team focused on implementing the Roadmap strategy, and deliver sustainable income.
The Outcome
Outcomes from the Roadmap strategy over three years:
- Increased net profit by 350%.
- Increased revenue by 210% from FY18 to FY21, achieving the target to double revenue in three years.
- FY22 is on track to be their most profitable year despite the slowdown of major infrastructure projects during COVID-19.
Outcomes from the Marketing Specialist:
- Increased brand awareness and reputation as the leader in complex water filtration systems.
- Attracting higher-value projects across several industries with a win ratio exceeding 75% in the Healthcare sector.
- Consulted on the majority of hospital system upgrades.
- Improved lead flow of higher-value customers, enhancing both top-line sales and net profit.
Outcomes from the CFO Specialist:
- Reduced reporting timeframes to within 10 days of month end (down from six weeks), enabling faster reaction to performance insights.
- Introduced board-level reporting and regular management review discipline.
- Improved financial and reporting rhythms, creating shorter lead times for actionable insights.
- Prepared the business for an exit strategy to release equity back to founding shareholders and transition to a new management team.
Outcomes from the part-time Chief Executive Officer:
- Established scalable processes and systems to manage ongoing growth.
- Introduced accountability and performance measurements, leading to a more focused and committed team.
- Improved company culture and morale, fostering belief in future growth potential.
- Increased board confidence that shareholder value can be realised, and clarity that founders are not best placed to advance the business further.
- Delivered a vastly improved bottom line and balance sheet.
Four years after the initial Discovery Roadmap, Strategic Specialists Group continues to be engaged by this client to build sustainable growth.