
The client, a leading environmental services company, specializes in the operation and construction of wastewater facilities, sludge treatment, and bio-resource facilities. The company operates in an industry characterized by steady revenue generation regardless of economic cycles, ensuring stable performance. However, intensifying competition and changes in bidding policies by project owners led to a decline in revenue. Following its acquisition by a private equity fund, the company embarked on a Value-Up project to improve performance and enhance enterprise value.
Strategic Approach
As a service-oriented business with a high proportion of labor costs and strict requirements to maintain service levels for clients, identifying opportunities for improvement required a holistic analysis of operations. Through comprehensive diagnostics covering sales, workforce management, facility operations, and procurement, the project identified actionable improvement initiatives. This demonstrated the effective application of Value-Up strategies in the service industry.
The project was structured around three key areas for improvement: procurement, sales, and site operations. Key initiatives in each area included:
Procurement Optimization
- Transitioning bulk purchases of general chemicals, consumables, and maintenance materials to centralized procurement.
- Identifying new suppliers for water treatment chemicals and implementing an RFP process.
- Consolidating outsourcing services into a unified national RFP process.
- Optimizing telecommunications networks and transitioning to integrated contracts.
- Overhauling the procurement framework, including redefining organizational direction and clarifying R&R (roles and responsibilities).
Sales Enhancement
- Expanding revenue streams at operational sites and increasing B2B client acquisitions.
- Securing contracts for process engineering and technology-based projects.
- Establishing a robust sales pipeline management system.
- Disseminating best practices for operational contracts across the organization.
Operational Improvements
- Upgrading treatment plant facilities and prioritizing improvements at key operational sites.
- Establishing a monitoring framework for operational performance metrics.
- Developing workforce management guidelines for operational sites.
Results and Ongoing Impact
The project identified opportunities to increase profits by 38% relative to the client’s baseline operating income. The client is now closely monitoring individual Value-Up initiatives and has established an innovation task force to sustain and expand performance gains over time.
This Value-Up project highlights the adaptability and efficacy of performance improvement strategies in service-oriented industries, providing the foundation for sustained growth and competitiveness.
The client, a leading environmental services company, specializes in the operation and construction of wastewater facilities, sludge treatment, and bio-resource facilities. The company operates in an industry characterized by steady revenue generation regardless of economic cycles, ensuring stable performance. However, intensifying competition and changes in bidding policies by project owners led to a decline in revenue. Following its acquisition by a private equity fund, the company embarked on a Value-Up project to improve performance and enhance enterprise value.
Strategic Approach
As a service-oriented business with a high proportion of labor costs and strict requirements to maintain service levels for clients, identifying opportunities for improvement required a holistic analysis of operations. Through comprehensive diagnostics covering sales, workforce management, facility operations, and procurement, the project identified actionable improvement initiatives. This demonstrated the effective application of Value-Up strategies in the service industry.
The project was structured around three key areas for improvement: procurement, sales, and site operations. Key initiatives in each area included:
Procurement Optimization
Sales Enhancement
Operational Improvements
Results and Ongoing Impact
The project identified opportunities to increase profits by 38% relative to the client’s baseline operating income. The client is now closely monitoring individual Value-Up initiatives and has established an innovation task force to sustain and expand performance gains over time.
This Value-Up project highlights the adaptability and efficacy of performance improvement strategies in service-oriented industries, providing the foundation for sustained growth and competitiveness.