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PEGS 80/20 > Case Studies
Deep Change, Unparalleled Success
Strategex's Profit Enhancement and Growth Strategies, when implemented faithfully by our clients, led to consistent earnings growth and complete transformations of how our clients do business. We start by taking a hard look at client data, then developing custom strategies for simplification and profit acceleration. The proof of our approach is in the numbers. Read on.
The Pareto Principle
A mid-size company found itself dramatically underperforming financially, despite top-line growth. With far too many products and customers, they were a textbook example of the need for the “Pareto Principle,” also called the 80/20 principle. We suggested several low-risk, moderate-impact moves such as product line simplification and product/customer boxing that, within three months, got them from negative profitability to 5% in the black. more >
Achieving Profitability by Reforming Leaders
The consulting division of a major $3.4 billion utility had been struggling with flat growth and relatively low profitability for five years. Growth plans failed to move the profit needle. In the first six weeks of applying Strategex’s recommendations, the company realized an increase of $2M in profitability. The president of the company was transformed by the 80/20 process, and in just one year, the company grew its top line by 18%, and improved operating income by 400%. more >
Profitability through Restructuring & Simplification
A $750M–$1B group of specialty chemical companies, built in the late 80s, had grown steadily, primarily through acquisition. All the divisions had high material margins as well as very high SGA/overhead. One key step was product line simplification, resulting in world class QDC. In another case, outsourcing and focusing on core competencies produced a major shift in the culture. more >
Applying the "Holy Grail of Business"
In late 1999, a $3 billion company with superb brand names and excellent potential was acquired. Despite adding revenue easily, the overall profit margin percentage languished in the mid-single digits for years. Strategex experts led the full battery of 80/20 processes, more than doubling profitability in a five-year period and inspiring the former CEO to call 80/20 “the holy grail of business.” more >
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