Our methodology and practice helps companies increas profitability and shareholder value

1. Telecom Business Advisory
Mathews Michaels
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2. Revenue
Cost
Productivity Profitability Containment
Expanding
Relationships
Business Health Check
Mathews Michaels
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3. Revenue
New Sales MAC
Total
Revenue$
Service Contracts
Other
Maintenance
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4. Revenue Analysis
• Professional • Solution
Services
Labour Equipment
Finance Services
• Lease, Cash, • Maintenance
Other • Complimentary
Products
• Add-ons
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5. Sales Force Effectiveness
• Team Structure
• Success Rate of Individuals and Team
• Effectiveness of Proposal
• Effectiveness of Presentations
• Pipeline or Funnel Analysis
• Competitive Landscape
• Performance Management
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6. Productivity
People
Process
Results
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7. Work Force Effectiveness - Process
Project Scope
• Sales Agreement • Set Expectations
• Customer Expectations • Communicate Plan
• Initial Design
• Requirements • Assign Responsibilities
• Project Plan
• Money Available • Manage Work Force
• Charter
• Agreement to Proceed
Project
Expectations
Management
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8. Work Force Effectiveness - People
• Team Structure
• Profitability of Work (New, Service, MAC)
• Profitability of Customers
• Service Penetration Rates on New Installs
• Tech Productivity
• Performance Management
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9. Cost Containment
• Review
– Fixed Costs
– Variable Costs
– Creative Ways to Reduce Costs
• Use of Variable Cost Modeling
• Examination of Fixed Costs
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10. Expanded Partnerships
• Financial Solutions
• Complimentary Products and Services
– Audio Conferencing
– Web Tools and Collaboration
– Wireless
– Professional Services
• New Solutions
• Expanded and Shared Services
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11. Business Transformation
Current State Benchmark Desired State
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12. Key Performance Indicators (KPI)
Chart Title
120
100
80
60 Current
40 Benchmark
20 Desired
0
Revenue
Margin
Profitability
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13. Our Goals and Expectations
• To:
– uncover and validate organizational strengths
– uncover and find opportunities for improvement
– provide concrete means to improve Sales
– provide the same for Operations and Finance
– introduce new revenue streams
– create tangible deliverables to drive results
– help improve bottom line profitability
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14. Exercise #1
• Using benchmarking let’s look at a typical $ 5M business
– We have four reps that are collectively selling $ 2.5M annually
– We have a blended margin of 40%
– We have good CSAT ratings
– We have 10% attrition in our base
– We are making a 10-15% return on the bottom line
• What can we learn from our mix of revenue?
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15. Revenue
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16. Margin
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17. Gross Profit – 40% Blended
Revenue – Cost of Goods Sold = $ 2M Gross Profit 17

18. Net Profit – 10-15%
Revenue – All Costs = $500k - $750k Net Profit 18

19. Questions to Ask?
Sales Operations
• Are we netting what we expect • Are we effective in delivering our
from the team and individuals? solutions on time, on budget?
• Are we leveraging new sales • Do we have good CSAT Ratings?
effectively to generate higher – What is our attrition rate?
margin, lower cost revenues? • Does Operations and Corporate
• Does everyone sell or at least generate revenue?
generate revenue? – Can they? How?
• Do we have the right structure? • Do we have the right partnerships
• Do we have effective in place to drive our desired
Performance Management in results?
place? • Do we have effective Performance
Management in place?
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20. Questions to Ask?
• What would a 2% increase in margin mean to our net
profit?
– $ 100K or a 20% increase to the bottom line
• What would happen if we increased average sales
per rep per month by $ 10K?
– $ 30K bottom line
• What would happen if we were able to sell service
contracts, at time of sale to 50% of all new sales?
– $ 100K or a 20% increase to the bottom line
Once Corporate, Fixed and Other Costs are covered little if any additional costs
apply to incremental revenues
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21. Why Mathews Michaels?
• We know the industry
• We have the relevant experience
• We have the necessary expertise
• We understand your business
• We work with your team, compliment your
existing strategy
• Through you, we get results
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