IT restructuring to support a divestiture and reverse merger

A telecommunications infrastructure provider took on significant outside capital investments from private equity firms to support aggressive growth and expansion. Outside investor scrutiny, increased accelerated capital expenditures and reduced coordination and execution of the infrastructure expansion led to a significant reduction in EBITDA and delays in realizing corporate revenue and customer capture objectives.

A workout team rapidly built a structure to capture the costs and resources associated with the infrastructure roll-out. An integrated, resource-loaded execution strategy was designed and implemented based on the new cost structure.

As a result, senior leadership and private equity investors clearly saw financial and operational views of the roll-out. This increased visibility created the clear revenue, profit, and return on investment goals require to meet corporate objectives. In less than 18 months, The company not only reduced the operating expenditures by 40%, but also exceeded the revenue and earnings target. Subsequently, the company successfully underwent a reverse merger.

IT restructuring to support a major healthcare clinical systems modernization

A leading healthcare system embarked on a multi-year, multi-billion-dollar modernization effort to imple-ment electronic health record (EHR) technologies to improve financial, clinical and customer service goals. However, the stakeholders had lost confidence in the IT organization and its history of high profile, disruptive, and expensive failures. Executives viewed the modernization project as high-risk because of IT concerns, inhibiting the organization from realizing its goals.

A workout team used Lean Six Sigma techniques to illuminate the financial exposure and risk of the modernization, and to identify improvement and risk mitigation opportunities. Complete financial visibility and transparency led to improved decision making and resource allocation.

Senior leadership and external stakeholders gained increased confidence and IT organization visibility. The twelve-month corporate turnaround effort supported by IT restructuring led to additional capital infusion of over $100M for the infrastructure buildout.

IT restructuring to Build Financial Transparency and Board of Directors Support

A new CIO leadership team at a national health-care services provider needed to rapidly gain an understanding of the current state of IT. The team needed to develop a short-, medium- and long-term investment strategy to improve IT alignment and performance before the annual Board of Directors meeting.

A workout team quickly developed a financial picture of the organization, including the full range of all IT activities, projects and investments. The analysis revealed significant areas of redundancies, capability gaps, overinvestment and under-investment. The key team worked with the office of the CIO to identify immediate cost reductions and formulate a long-term sourcing strategy to yield additional savings. The CIO received strong support from the CEO and the Board of Directors on the IT strategic and financial plan, and subsequently obtained approval for the 5-year IT operational plan to align with the projected revenue growth of over 10% per year.