The U.S. flagship property of a global print media corporation needed to increase profitability, even as it was threatened by Internet innovations and a host of new competitors.
Management needed to build consensus around two fundamental questions that were critical to increasing profitability. What business are we really in? And, how can we strengthen our relationship with our customers?
The work began with building clarity around a new strategy, business model and performance objectives. That effort helped employees understand and embrace change and kept leadership focused on a new vision. From there, Axiom helped the company:
- Develop an organizational design that supported execution of the new strategy.
- Unlock new value from its legacy products.
- Eliminate unprofitable activities and businesses.
- Invest wisely in creating a new business unit that captured growth from previously overlooked market segments.
- Hold executives accountable for meeting key objectives.
- Realign the sales force so that they were helping implement the new strategy.
- Earnings before interest, taxes, depreciation and amortization (EDITDA) increased measurably within months.
- A 25% minimum marginal improvement in EBITDA is projected within three to five years.
- New revenue streams from legacy assets contributed to profitability without the need for substantial investment.