BUSINESS TURNAROUND – control regain

  • BACK TO PROFITABILITY
  • CONTROL REGAIN

ORGANISATION

  • Global DMC PLC (Destination Management Company) – 4th Tour Operator in Europe

project SCOPE

  • Bring Region back to profitability
  • Regaining control on the company operations

project GEOGRAPHY

Middle East
UAE – United Arab Emirates, Oman

FINDINGS

  • 5 months delay in booking of purchase invoices
  • lack of control on purchase price
  • ineffective accounting function
  • errors in profitability calculation
  • delays in budgeting / forecasting
  • qualified Audit Report for prior years.

CHALLENGES

  • leadership and culture issues
  • Operational inefficiencies
  • Market challenges
  • Time constrains
  • Uncertainty
  • Lack of resources
  • non standardized procedures and processes in various countries
  • Lack of proper reporting and controlling processes
  • Employee morale

ACTIONS

  • effective process implementation
  • re-building Accounting & Data Processing functions
  • intensive training program for finance
  • roadmap to underpin future growth IT system optimization
  • New cash management system implementation
  • procedures to discuss discrepancies with providers (hotels)
  • establishing proper cooperation of finance & accounting with other departments

DELIVERABLES

  1. Operational savings /EBIT Improvement ($2m)
    • high performing teams of data processing & accounting
  2. IT system gaps fixed
    • proper data uploaded to the IT system, resulted in recovering lost GM by $1m
  3. Clean Audit Report
  4. Finance department rebuild and prepared for:
    • fast expansion
    • proper identification of issues
    • quick and adequate reaction
  5. Reduction of staff turnover by 20%
    • new reward and bonus system
    • new managerial culture (merit based)

EXPERTISE APPLIED

Finance & Accounting

  • Strategic Fin. Planning, Execution
  • Budgets/Forecasts/Actual P&L/BCF
  • FP&A, Statutory, Group Reporting
  • Financial and reporting discipline

Business Turnaround

  • Portfolio evaluation & optimization (sales)
  • GM optimization (operations)
  • Back office costs optimization (SG&A):
  • Restructuring & Process Improvement
    • Centralization
    • Regional Shared Services (SSC/BSC)
      • creation, transition, management,
      • continuous improvement

Change management

  • addressing staff concerns,
  • facilitating cultural alignment
  • operational processes streamlining

Project management

  • proper process planning
  • roadmaps preparation and execution
  • efficient resources allocation

DOWNLOAD FILE

Business Turnaround – control regain (pdf) – less than 1MB

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