The following are examples of ways that Roggen Management Consultants can assist your company in achieving its management and financial objectives – click on the links to see a brief summary of our consulting experience in each of these areas:
1. ASSESS COMPANY VIABILITY - evaluate overall company situation, develop yardsticks to project future performance, and identify required actions to improve operations, marketing, and future profitability.
2. EVALUATE ORGANIZATION AND MANAGEMENT - review and critique company and departmental organization structure, effectiveness, and the placement of responsibilities and decision-making authority. Evaluate company personnel, working relationships, and existing performance incentives. Make recommendations for improvements as required.
3. FINE-TUNE REPORTING AND INFORMATION FLOW - review and evaluate company-wide and departmental reports, data collection, and information flow to assure the provision of required information for effective control of operations and decision making, on a timely basis.
4. EVALUATE POTENTIAL ACQUISITIONS – evaluate management, operations, sales, marketing, positioning, and future profitability potential of companies targeted for acquisition. Calculate fair market purchase price, other significant acquisition costs or savings, and associated return on investment.
5. CHAPTER XI REORGANIZATION - reorganization planning for companies which have filed for chapter XI status under the bankruptcy act. Determination of which operations, functions and facilities are still viable and required, effective culling of management and staff, and determination of financial requirements for continuing operations.
Scroll-Down to read brief summaries of our consulting experience…
ASSESSING COMPANY VIABILITY
- Performed two separate operational audits and evaluations of the potential for future profitability for a small northeastern motor carrier and a New England bus line.
- The results of these studies indicated that through an aggressive marketing campaign and improved efficiency in pickup and delivery operations, the trucking company could once again assume a profitable posture; and through adjustment in scheduled run times and frequencies, along with improvements in vehicle maintenance, office staffing and marketing programs, the bus line could dramatically improve profitability and operating ratio.
- Conducted a review of organization structure, management capabilities, manufacturing procedures and financial planning for an aircraft manufacturer establishing production operations for a four engine turboprop transport in Puerto Rico. Study was critical factor in manufacturer receiving financing guarantees from both the Farmers Home Administration and the government of Puerto Rico.
Areas of concentration in both of these studies included:
- Review of recent financial performance
- Review of current operations and organization
- Evaluation of management personnel
- Asset valuation
- Recommendations for improved profitability and control
- Projection of cash flow requirements
- Timetable for implementation of improvements
EVALUATING ORGANIZATION AND MANAGEMENT
- Performed evaluations of company and department organization structures for a wide variety of consulting clients. Objectives of these evaluations have been to improve functional operations through better internal communications, paperwork flow and correct placement of responsibilities and decision-making authority.
- These projects have included preparation of detailed job descriptions itemizing duties, responsibilities, reporting relationships, compensation ranges and experience and education prerequisites for key management personnel.
- Evaluated client management personnel whose performance directly affected areas involved within consulting studies performed, and projected their respective capabilities to assume broader working responsibilities.
- Established the criteria for management incentive programs including:
- Installation of cost and profit center accounting techniques
- Identification of functional areas directly affected by management performance
- Establishment of performance goals for incentives achievement
- Development of incentive rewards structured to enhance company profitability
FINE-TUNING INFORMATION FLOW AND REPORTING
The majority of these consulting assignments involved utilization of client operational and financial reports to develop data for use in surveys and analyses. Continuous exposure to these reports led to many recommendations that have resulted in both reduced clerical expenses and improved company control.
A specific study conducted in this area involved review of the operations management reporting system for an east coast motor carrier with annual revenues of $40 million. New report formats and associated data collection channels were developed for:
- Linehaul Balance and Empty Move Report
- Shipper Profitability Analysis
- Terminal Profit and Loss Statements
- Sales Expense Reports
- Claims Reports
- Driver Safety Reports
- Driver Turnover Reports
EVALUATION OF POTENTIAL ACQUISITIONS
Evaluation of a potential acquisition conducted in a manner similar to the projects described under assessment of company viability. After the prospect company’s state of health is determined, return on investment is calculated as a yardstick in determining a reasonable purchase price.
Analysis of current and future demand for the prospect company’s products, competitiveness of the market for those products, and the ability to maintain reasonable market share and pricing into the future are also key factors in evaluating a potential acquisition.
- A specific study performed in this area evaluated manufacturing systems, plant layout and machine utilization of a Canadian manufacturer of valves for use in nuclear reactors. The study was structured to be utilized as a decision-making tool on the part of a U.S. corporation which was considering acquisition of the Canadian company. Findings indicated that production operations could be better controlled through increased standards coverage and establishment of proper reporting discipline for existing piece work operations. Annual cost reduction through implementation of proposed recommendations was estimated to be in excess of $350,000.
CHAPTER XI REORGANIZATION
Teamed with another consulting company in a study to outline reorganization planning for a major US textile conglomerate following its declaration of chapter XI status under the bankruptcy act. Review and evaluation included:
- Determination of continuing viability of existing spinning and weaving plants based on demonstrated productivity and facilities configuration
- Evaluation of continuing sales and marketing efforts being conducted by various corporate divisions
- Evaluation of organization structure and management personnel best suited for continuing operations
- Determination of financial requirements for continuing operations