This software and services company had a newly appointed CEO and board member, who recognized the business was suffering from an oversized cost structure as a result of multiple acquisitions over a three-year period.
SG&A costs were found to be 7.5% – 13.5% higher than its peer group, representing a $32M – $58M ($430M base) cost optimization opportunity.
The Sales function was inefficiently structured with poor customer segmentation modeling.
Sales also lacked process and role definition as well as inconsistent sales management tools.
Synergetics structured a full organizational, functional and operational benchmark review of the business to baseline and identify key areas of stranded costs, latent value and scalable opportunities.
“Project Drive” targeted $52M in cost savings. The primary drivers included: organization design optimization, G&A expense reduction, sales structure rationalization, and enhancements to Professional Services and Customer Support functions. Synergetics also helped with the:
- Realignment of the sales team and increased use of inside sales (small clients)
- Standard management tools and processes to support the reorganization
- In-sourcing of maintenance renewal process (managed by a 3rd party)