The Organization’s Issue
The company salary and wages stood at 48% of gross revenue and vendor contracts, cost of goods, and outsourced services needed evaluation. Many of the leaders stayed loyal to existing employees and vendors and preferred to pass on a hard look at the financial results. Wage and salary variations by location seemed significant but difficult to assess without salary or wage tables. Leadership tended to focus on ways to grow revenue to justify the expenses instead of emphasizing cost reduction and revenue growth. This resulted in a bleak financial trajectory.
- Collaborated with the finance team to acquire micro / detailed data and analyzed the P&L reports.
- Implemented a pay scale and adjusted employees to the scale.
- Implemented a staffing metric based on performance to customer to employee ratios and downsized as needed.
- Oversaw the AP department through a re-bidding process with all vendors and directed the corporate team through an outsourcing evaluation.
Decreased total expenses by $2 million in annualized operating costs within the first three months by analyzing P&L data, evaluating the staffing model, and reducing operational inefficiencies.