Arnold Business Advisors

While we are the first to point out that not all contributions to the “success” of a business can be quantified, businesses are in business to make a profit; thus, business owners and their employees should periodically quantify their contribution to profitability.

We generally challenge teams to identify specific tangible results which at a minimum equate to 1 ½ times their annual compensation.  As a management consultant, we like to see our contributions equate to a minimum of 3 times our fees.

Over the past 5 years, we have averaged contributions of over 5 times are compensation through the leadership and inspiration of multiple High Performance Teams.  We are passionate about Manifesting Results and would love to speak more with you about opportunities.

Company C has a facility which has been idled for 10 years.  They have a couple different ideas for what the facility could be used and it has some existing equipment which needed to be assessed for application and its ability to restart.  One of the ideals for reuse was the development of unproven technology for downstream processing of their products.  Deliverables were established and five different options for the facility were outlined.  Time allocations were primarily focused on two projects which would bring the highest returns.  Utilizing internal and external resources, plans were established, time-line agreed upon, and executed.  The end result was a feasibility study with capital outlay requirements for five different options of which one was the sale of the property.

Company B owned a plant which has not been profitable since start-up several years earlier.  Numerous managerial changes had been made over the years at the facility in order to find the right leadership.  An in depth analysis of the companies financials was conducted, opportunities for improvement were identified, and strategies were submitted to the Team for implementation.  A breakdown of accountability occurred within the internal management team’s implementation of the plan.  Arnold was given interim management responsibility for the facility.  Departmental barriers were removed, expectations were set that we all play on the same Team, and the original strategic plan was used as the basis for the beginnings of returning the Company to profitability.  Through the “process” and the engagement of all the employees, the facility became profitable within a 5 month period.

Company A wants to reduce cost by $1.0M over the next 12 months.  Outside of Labor Cost which the organization has a good control on, Material Cost #1(MC1) and Material Cost #2 (MC2) are the two largest controllable costs.   It was determined that in order to achieve a $1.0M reduction, MC1 Usage would need to be decreased by 1% and MC2 Usages would need to be reduced by 10%.  80/20 analysis was done in both categories.  Teams were presented with this analysis, brainstormed opportunities for improvement, outlined initiatives, assigned responsibility and target dates.  Through weekly, monthly, and quarterly reviews, progress was monitored, persons were held accountable for action items, and the plans were reassessed.  The net result was a 5% reduce in MC1 Usage, 20% reduction in MC2 Usage, and a net annualized savings exceeding $2.5M within the first year.