A stagnant market, costly acquisition and declining sales prompted this library supplier to get a better read on operational issues and labor expenses in three core business areas. Margins were flat; the acquisition of a competitor did not deliver anticipated benefits; and labor costs were rising with no connection to outcomes. Following an encyclopedic assessment, The Powers Company transformed management operating systems, provided critical insight into needed resources, reset performance standards, and instilled a more proactive supervisory culture. The happy ending? An available $2.1 million in annual labor savings, accurate planning, and improved customer service.
Our client is a provider of library and archival supplies, and library design services. Operating in a market that is shrinking, and seeing its core sales decline, the company acquired a competitor in 2010 expecting to boost revenues and economies of scale. Although the client experienced sales growth during 2010-2011, the acquisition and integration costs were high, and the acquisition added complexity.
The company brought in The Powers Company to examine and address its operational issues and labor expense at both of its facilities. Its leaders’ chief concern: Labor costs remained constant while revenues were dropping. And, they lacked an effective Management Operating System that would allow them to achieve the performance potential of their operations.