Client: Purchased Services Company
The Problem
This client was a small company with proprietary software and services that help hospitals markedly reduce the cost of purchased services— such as food, IT and facilities, and outsourced clinical services—which are dispersed throughout the institution. Despite the solid benefit this product provided, sales were no longer growing and there was not much runway left before the company would have to seek additional financing. PSCo needed an informed and experienced person who understood the supply chain, understood hospitals, and who could help increase sales, cut costs and expand the viability of the company.
The Approach
After interviews with the CEO and members of the board, Alan devised a plan with leadership to reduce staff with the least amount of disruption to conserve funds and extend operating time. Next, he looked at why sales remained stagnant with a focus on developing a new sales and marketing approach for the company. His first insight was that PSCo sales force was approaching the supply chain managers, not the C-suite decision makers who really counted. Alan helped the company recruit a new chief revenue officer, collaborated on a revamp of the sales compensation plan, and developed a sales presentation oriented to CFOs. He also helped Medpricer recruit a board member who had hospital marketing and sales experience and could open doors for the company.
The Impact
This client's cash balance and revenues now exceed projections. Alan helped align management and the board on the company’s strategy and operating milestones, so the company has a coherent and workable plan. They are on their way to achieving that plan and, as a result, are likely to attract additional capital. And the company has a longer runway to accomplish that goal.