CFO of a High Growth Business Services Company Needed Visibility into Key Financial and Operational Drivers
A leading North American energy efficiency services company ($160mm revenue) had recently been acquired by a $17bn global growth equity firm. The company had achieved extraordinary growth, both organically and through acquisitions, and operated through regionally-focused business units. To better manage growth and to drive continued performance and strategic priorities, the company’s CFO and private equity sponsor identified a need to define and track a set of key performance metrics across disparate business units.
Rapid implementation of KPI Reporting Process and Platform
Accordion developed an integrated platform of metrics to drive management priorities, pricing and profitability decisions, resource allocation and top-line growth.
- During the initial discovery phase, Accordion worked with company management to quickly gain a detailed understanding of the strategic priorities and key management decisions, including optimal contract pricing and client segmentation
- Accordion then defined a set of financial and operational metrics such as kwh-savings, EBITDA/Hour and Probability Weighted Pipelines. These metrics enabled management to measure progress and contribution from Business Units down to the individual client and program levels
- Accordion also analyzed the company’s existing data systems and reporting capabilities to determine data availability and identified and revised data collection processes to enhance data segmentation and business intelligence
- Critically, Accordion constructed and implemented a comprehensive KPI metrics reporting platform with automated processes for data inputs and report generation, providing the ability to interactively drill down and link financial and operational drivers to company performance
- Accordion also created various custom reports such as Pipeline Go-Get and Revenue Bridges that enhanced the company’s existing monthly financial reporting package and highlighted key actionable data points to management and investors
- Accordion conducted teach-ins with the company’s staff and efficiently transitioned the reporting platform. Accordion also developed a step-by-step usage guide and a detailed update roadmap to set the cadence for updates
A Robust Reporting Tool to Drive Actionable Analysis
- The company management and private equity sponsor derived significant time and cost benefits from the detailed metrics reports by analyzing the company’s operations at such a granular level and connecting detailed operational data to financial performance.
- A variety of actionable insights were also identified, including the need to standardize pricing and costing, gap analysis of top-line growth and labor pay standardization across business units.