Capturing value from a marquee acquisition
A multinational digital firm had recently been acquired by a global customer experience services company. The acquisition was intended to be a marquee investment for our client, complementing their strong market position in contact center offerings (outsourcing, software implementation, analytics) with a suite of digital experience capabilities, creating an end-to-end CX consultancy and managed service provider. Just months into the integration, however, revenue began to plummet as account growth stagnated, new customer acquisition slowed, and an increasing number of enterprises were bringing the exact capabilities our client just acquired in-house.
Our client needed a blueprint to rapidly cut costs while simultaneously developing a formula that would reignite revenue growth, all while assimilating 20% staff growth into their org structure, solution offerings, and delivery model.
Valorem started with a detailed inspection of the acquired company’s cost model to understand underperforming segments of the business and more importantly, where cost and revenue drivers were misaligned. A new delivery model was designed. One that refocused the way resources were used so that delivery efficiency was maximized, improving resource utilization, reducing total staffing needs, and shortening delivery timelines.
The second critical component was developing a new talent strategy that made better use of high-cost resources to help drive incremental revenue growth. Valorem shifted workforce responsibilities at key levels of leadership to create better alignment between delivery management and sales. This created the opportunity for a reduction in annual operating costs while also better positioning our client for account-based revenue growth.
Establishing an integration strategy was key to unlocking the growth potential behind the new delivery model
Valorem started with a detailed inspection of the acquired company’s cost model to understand underperforming segments of the business and more importantly, where cost and revenue drivers were misaligned. A new delivery model was designed. One that refocused the way resources were used so that delivery efficiency was maximized, improving resource utilization, reducing total staffing needs, and shortening delivery timelines.
The second critical component was developing a new talent strategy that made better use of high-cost resources to help drive incremental revenue growth. Valorem shifted workforce responsibilities at key levels of leadership to create better alignment between delivery management and sales. This created the opportunity for a reduction in annual operating costs while also better positioning our client for account-based revenue growth.
To ensure success, Valorem established an integration strategy for GTM capabilities that would help realize bi-lateral synergies and help stem the tide of account atrophy, boost net new logo acquisition, and drive revenue growth across all channels. This included detailed roadmaps for implementing both the delivery model and talent strategy in a manner that helped accelerate cost savings from any team restructuring but also minimized risk to daily operations through controlled movement. The last piece of the puzzle was to redefine business KPIs that reflected the new way of work, ensured proper measurement of integration performance, and drove accountability to appropriate levels of the organization.
Our client is operating under the new delivery model. With critical KPIs in place to help manage new operational norms, teams are seeing an increase in profitability across the board.
The new talent strategy continues to be rolled out incrementally with a focus on minimizing disruption in key talent areas while evolving cultural norms around sales and client management.
40%
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$4.2m
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24%
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3x
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