Business Transformation (Turnaround) Consulting Services by SigmaPro

SigmaPro is a full service business transformation (turnaround) consultancy with global headquarters located near Denver, Colorado.  Business transformations or turnarounds can be complicated, and you might have some questions.  As you consider the trajectory of your business, some commonly asked questions and corresponding answers found below might be useful to you.  Please contact us if you have further questions, or if you are ready, please request a complimentary assessment of your transformation needs.


Do I Need Business Transformation/Turnaround Assistance?


There are many reasons to engage a business transformation consultancy, but financial performance is first and foremost. The most direct measure of financial performance is whether your business is adding value each year. Economic Value Added (EVA), developed by Stern Stewart Co., is a measure of financial performance relative to the expectations of the owner or investors. Simply put, EVA compares the net operating profit after tax to a capital charge which is the amount of profit that investors would expect the business to generate in order to remain an attractive investment. Positive EVA means the organization is adding value over time, while negative EVA means that even though your organization may be profitable, its attractiveness as an investment is decreasing over time.


In layman’s terms, EVA is the amount of money left at the end of the year after everyone is paid – suppliers, employees, the government, investors, etc. If money is left over after everyone has been paid, then your organization has added value to the business. If not, then your business may have turned a profit, but someone got shorted, thereby affecting the attractiveness of your business as an investment.


If your organization has a positive EVA, then you will likely have the opportunity to develop a successful strategy, create alignment in the organization with the strategy, and execute on the strategy on your own terms, and SigmaPro can certainly help you accomplish such activities. Even so, a positive EVA does not mean that your organization does not face issues or have pain points that might be addressed by transformation techniques. Every organization has opportunities for improvement in the overall business lifecycle which will add to the bottom line and fund future growth.


If your organization has a negative EVA, it means that value is being destroyed with each year of operation.  If so, then time is limited, and you should seriously consider a focused business transformation effort. For negative EVA organizations, the first step is often to alleviate cash flow issues.  The easy but problematic methods for raising cash are debt or equity offerings.  SigmaPro can help you find and execute a sensible strategy for each line of business that provides significant financial returns in a shorter time period and is sustainable for the forseeable future.  If you would like more information on Economic Value Added (EVA), please see our publication entitled "The Right Decision."


What Types of Business Transformations or Turnarounds Should I Consider?


SigmaPro has experience with the two main types of business transformations or turnarounds – consultative transformations and guided transformations:

  • Consultative Transformation – In this case SigmaPro consultants act as external advisors to existing management.  Implementation of the business transformation plan and the corresponding results are the responsibility of the client organization.
  • Guided Transformation – In this case the client hires SigmaPro consultants and places them into key executive roles at the C-level or Senior VP-level to lead the transformation.  In this manner, SigmaPro consultants are tightly integrated with the leadership team and can maximize results in a much shorter time period.

In either case, SigmaPro will provide your organization with a business transformation or turnaround plan that addresses structural, operational, internal, and external issues and can be implemented within the resource constraints of the organization. Our consultants use the proven SigmaPro business transformation (turnaround) methodology as the basis to create and customize your plan.


What is the SigmaPro Business Transformation (Turnaround) Methodology?


During our 20+ years of business transformation (turnaround) experience for some of the world’s best companies, SigmaPro has created, practiced, and constantly refined a roadmap for business transformation. While we can’t just put everything on the web, we can certainly share some of the high points as to how we have helped organizations in many different sectors revitalize their businesses.


Business performance begins and ends with financial performance. After gaining a clear understanding of the financial performance for each of your lines of business (LOB’s), we would help you determine the next steps. Our first step might be to help you stabilize your cash flow and put creditors at ease, or it might be to move ahead and examine the strategies that you have put in place in your organization. Having the right strategy for each LOB, such as concentrated growth, market development, product development, innovation, horizontal integration, vertical integration, retrenchment, joint ventures, concentric diversification, diversification, or even divestiture, is key to a successful transformation.


Once the organization’s strategies are optimized, we would look closely at how your organization has created alignment among the functional areas of the business according to the strategic objectives. The process of setting goals throughout the organization is known as policy deployment. A well-done policy deployment system involves making goals, timeframes, owners, metrics, etc. clear at all levels of the organization.

With clarity and alignment at all functional areas of the organization, SigmaPro can then help you examine current performance against expected performance in all functional areas of the business. It is at this point that we would identify all performance issues and then help you create a customized plan to address such issues and opportunities. This customized plan might involve restructuring, retrenchment (cost-cutting), or a number of different scenarios depending on the business function and issues. This is where SigmaPro excels as we have a vast amount of experience across many different sectors, and we can tailor a transformation plan to virtually any business scenario.


What Business Transformation (Turnaround) Services Does SigmaPro Offer?


SigmaPro is a full-service provider of business transformation (turnaround) consulting services. With expertise spanning two decades and locations in key cities around the world, you have access to the following services:


  • Business Transformation or Turnaround Planning
  • Strategic Planning Assessments
  • Policy Deployment Assessments
  • Business Model Optimization
  • Business Model Validation
  • Cash Flow Crisis Management
  • Financial Modeling and Projections
  • Financial & Sales Forecasting
  • Negotiations with Lenders, Creditors and Customers
  • Raising Capital (Pitch Decks, Investor Presentations, PPM's, etc.)
  • Refinancing and Capital Acquisition
  • Revenue and Margin Optimization
  • Industry Positioning
  • Market Research and Analytics
  • Marketing Plans
  • Product Line Analysis
  • Cost Reductions and Restructuring
  • Internal Performance Assessments and Action Plans
  • Operational Assessments and Action Plans
  • Performance Improvements and Action Plans
  • Productivity Improvements and Action Plans
  • Quality Improvements and Action Plans
  • Supply Chain Assessments and Action Plans
  • Executive Education
  • Middle Management Education
  • Design for Six Sigma Training and Certification
  • Lean Six Sigma Training and Certification
  • Lean Training and Certification


Are We the Right Transformation-Turnaround Specialist for You?


There are several parts to the answer for this question. First, you should examine the following attributes of successful past clients and decide if these fit you and your organization. These are key success factors that we have seen repeatedly in our prior engagements, and we have found the best with clients that have:

  • The desire to make the business successful. The leadership team must be “bought in” and not exuding a “wait and see” attitude.
  • The willingness to make hard decisions. An objective eye will find areas of the organization that truly require change. The leadership team must be willing to make those changes.
  • The maturity to know that the transformation may not be easy. There will be a lot of hard work involved at every level of the organization. True change is only accomplished when the strategy is clear, goals have been defined at all levels of the organization, and the organization is aligned around the strategy.
  • The maturity to know that a successful transformation takes more than just money. Borrowing money is relatively easy to a point, but it does not affect long-term change.
  • A firm grasp of your current organizational structure. The SigmaPro business transformation (turnaround) roadmap can work for an organization of any size. Larger organizations that are well-organized or small to medium organizations that have only a small number of business lines are best suited for quick and easy transformations. In other cases, restructuring may be warranted in order to enable a successful transformation (turnaround).
  • The time to determine a better path forward and to implement it. There are always stopgap measures for an organization that is hemorrhaging financially, and we can certainly help you if that is the case. SigmaPro is however expert at helping clients create, implement, and sustain a long-term business model that provides profitability and stability, and such a path usually requires 1 to 3 months.


A second consideration is SigmaPro’s experience. Obviously, you would like to hire an expert in business transformations or turnarounds. SigmaPro has helped hundreds of organizations around the world improve business performance through guided or consultative transformations. When clients exhibit leadership maturity as mentioned above, we have been successful and our references will attest as such. One of the reasons that we are consistently successful in business transformations is our wealth of experience with different organizations across many sectors – automotive, aerospace, defense, chemical, oil, mining, manufacturing, financial services, medical device, pharmaceutical, electronics, consumer products, government services, healthcare, and more.


A third consideration is the type of consulting firm that you want to work with. As you probably know, the “usual” consulting model is for a firm to hire relatively junior consultants and try to make as much as possible by billing at rates that are perhaps not commensurate with the consultants’ experience. SigmaPro is different, and we are proud of that fact. SigmaPro’s lead consultants and leadership team have been with the company for at least 10 years in all cases. We have kept our organization relatively lean so that we can focus on quality of service rather than quantity. We have detailed several reasons that SigmaPro should be your preferred provider of business transformation or turnaround services, and we hope that you will consider these carefully.


How Do I Get Started?


If what we have described above appeals to you, the next step is to answer the questions provided in the form on this page and submit your answers to us. Once we receive your information, we will investigate your situation and arrange a complimentary one-hour videoconference in which we will explore and understand your business transformation needs, discuss ways in which SigmaPro can best help you, and see if the fit feels right.   Please provide as much information as possible so that we can determine the right contact for you.  All information you submit will be held in the strictest of confidence, and if you wish to download and execute our mutual NDA form please do so and attach it with your submission.


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