Business Transition

A chance meeting can sometimes lead to a dramatic change in perspective and business opportunity.

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During small talk at a social event I mentioned that I have a financial background to another event attendee who indicated that they worked for an architecture and engineering firm.  The discussion led me to describe what key metrics I would use to measure how to measure the firm's business performance.  I also described how this would inform what business expansions or acquisitions should be undertaken.  I just happen to be speaking with one of three principals of the firm.  

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This led to a meeting with the other principals and thereafter a working relationship that continues to this day. The Principals had considered making acquisitions in the past but did not have an approach to evaluate such opportunities. 

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The firm had a capable finance team in place.  Our first action was to work with the finance team to implement KPI performance reporting.  Unlike what had been provided in the past, performance reporting now included third-party data on the health of the firm's end markets.  This enabled the Principals to re-consider their approach to the operations of the firm such as target staffing levels, geographic and segment focus of sales and marketing efforts, R&D investment decisions and early warning of client projects that may be in jeopardy.  Decision making became much more data-driven and led to increased efficiency and profitability of the firm.

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This work led to the development of a process to identify geographies and capabilities that the firm should consider in evaluating acquisition opportunities.  Further, the metrics served as a means to evaluate other firms in terms of their fit with the organization and the strength of their operations and people.  

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Ultimately, this work has resulting in the firm being more strategic in the projects it undertakes and the investments it makes in its people and capabilities.