Case Study.

Transformed the growth projections of a global systems integrator that was struggling to turn a profit.

The Problem

A fintech firm initially brought in Orchid Black to evaluate a potential transaction and to perform a Value Creation Assessment (VCA) with the goal of identifying areas of opportunity and provide an estimated valuation in the marketplace. 

After performing the VCA, which included reviewing company data, conducting market research, and holding internal and external interviews with stakeholders, Orchid Black quickly identified massive opportunities for growth, but certain factors were inhibiting the organization’s ability to grow.

Key factors included: 

  • Drastic misalignment between the board, investors, CEO and the management team led to an uneven vision, strategy and general roadmap.
  • The goals, metrics and KPIs that the staff was held accountable for did not drive the strategic plan; in part due to inconsistencies in the plan as well as insufficient operational knowledge. 
  • General operational knowledge and processes were insufficient. Despite good content, tech and a go-to-market engine, their system didn’t create a clear hand-off from sales to operations and delivery.
  • Too many key staff held unique organizational knowledge. If key staff left, the company could not recover. 
  • Product pricing strategy was based on a non-recurring revenue subscription, which boosted short-term gains, but lacked long-term sustainability.
  • No clear understanding of who all customers were, what they wanted and how they used their products, as well as a lack of strategy around building customer success. 
The Team
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Background

The Outcome

- Established firm as Platinum Salesforce.com consulting partner
- 100% increase in revenue and gross margins over 24 months
- Oversaw successful private sale, doubling shareholder value

The tactics deployed by Orchid Black operators achieved the desired objectives. Refined market alignment put the company on a deterministic path to revenue growth and increased stakeholder value in an incredibly competitive market.

The Partnership



The Solution

Entering a company with limited runway and a dysfunctional revenue model, Orchid Black operators took the role of CEO and brought operational execution to bear in the following areas:

  • Strategic leadership. A new business model and set of solutions offerings were needed to bring the company to profitability. Orchid Black articulated and implemented a new revenue model, positioning the company as a top-tier Salesforce.com consulting partner targeting enterprise companies.
  • Architected global go-to-market initiatives. Orchid Black architected a completely unique set of go-to-market strategies and plans, rolled out on a global scale. The new revenue model – focused on delivering high-margin enterprise solutions to larger players on leading CRM platforms – proved incredibly effective. Forging an identity as a top-tier Salesforce.com consulting partner was an essential piece in this new endeavor.
  • Recruited top talent. High-caliber operators across functional areas were brought in to assist in the implementation of the new revenue model. Aligning the entire team with a common strategy and specific performance goals was critical to achieving objectives.

    ALSO:

    - Managed all components of company sale. Remarkable growth over a two year period led to an acquisition by a major market player – with the sale doubling shareholder value. Orchid Black operators were instrumental in the throughout the process of the sale, including due diligence, legal proceedings, and financial reporting.

The Challenge

Key Takeaways:

- 300% increase in revenue and gross margins over 24 months

- Took company from negative growth to positive growth

- Oversaw successful private sale, doubling shareholder value

A global systems integrator was struggling to turn a profit, weighed down by an unsustainable revenue model and a lack of differentiation in a highly competitive market. Working with Orchid Black, the company transformed their business model, generating an incredible increase in revenue growth and leading to a successful private sale.

A system integrator and solutions provider using leading CRM and HCM tools had sound IT infrastructure and valuable IP assets, but were struggling to stay afloat with high operating costs, low margins, and a lack of creative solutions. The board – facing the prospect of diminishing returns – sought elite operational engineering to turn the business around. Transforming the bottom line and growing revenue to a profitable state were the core objectives for Orchid Black operators in this engagement.

Accelerating Results by Repositioning Solutions
The Results



Testimonial

"Orchid Black was able to come up with phenomenal insights in a matter of weeks just by analyzing the data that was already within our own company. That alone was worth every penny of the VCA (Value Creation Assessment)." 

-CEO & Founder, fintech company


This project embodies the archetype of an organization built by a brilliant, visionary founder who has a good product, then builds a successful company as large as he possibly can. However, like most great founders, he eventually hit a wall and needed to bring on a growth partner to make a decision on where to go next. The Orchid Black team was the perfect complement to help take this company to the next level, increase the value of the business, and exit quickly.
––Jim Barnish, Managing Partner, Orchid Black