The president and owner of Motivated Security Services was running a family business that she inherited from her father after he passed away. After years of profitability and sales growth, the company was caught in the downward cycle of lower prices and lower wages which caused lower customer service. This resulted in the loss of 12 accounts in the prior year which was 33% of the total revenue. As expected, the business turned from a profit to a loss. There was significant tension with the owner’s brother who had a minority stake. He was often not present and, when at work, was disruptive to other employees.
STRATEGIC PLAN EXECUTED:
CCA could not rely on productivity gains, and needed to execute a significant shift in company culture toward great service to differentiate in the market. CCA executed a plan encompassing several key initiatives:
- Negotiated buyout with brother with multi-year payout
- Implemented client satisfaction measurement systems
- Invented a new initiative – WOW service, rolled out to all employees
- Met with clients who agreed to price increases with improved service
- Trained field teams to improve service for revenue share on increases
- Implemented huge cultural shift
- Created budgets and regular reporting
CCA secured $1M in asset based financing from a senior lender.
END RESULT – Returned to Profitability:
Improved customer satisfaction from 67% to 95%.
Reduced guard turnover from 140% per year to 63%, with $175,000 in savings.
Dropped overtime expense by 84% saving $178,732 per year.