WHO KILLED THE COMPANY? – My Life as a Corporate Consulting Detective

During my career I’ve done a lot of strategic assessment consulting for companies, both as a full time employee and a hired hand. Companies, of course, don’t tend to bring in consultants when things are going well. They bring them in when they’re in trouble. Trouble allows me to do one of my favorite things: play the role of the Corporate Consulting Detective.

Of course, everyone wants a quick fix, quick and cheap. But it’s just like when you hire a plumber. No reputable plumber will quote you a price until he’s checked out the scene and assessed the damage. It’s the same with me. Until I’ve examined the scene of the crime I’m not going to speculate about where to find the smoking gun.

Contrary to what you might think, corporate consulting isn’t always glamorous. The trouble my clients get into isn’t usually about desperate dames and blackmail. It’s usually about a downward profit trajectory, and the only victim is the shrinking bottom line. I’ve seen a lot of these cases, and I’ve learned the hard way what to look for. I tell my client that I need to examine the usual suspects, and they’ve got to put their cards on the table. Is the perp the fickle marketplace? Jealous rivals trying to horn in on the action? What about the business itself, the industry? Have they failed to keep up with the times? Or (and this usually makes the client sweat) is the problem closer to home? Maybe the business is suffering from poor processes, ineffective management, or products or services that need modification.  As that TV guy Marcus Lemonis of CNBC’s The Profit often says, the determinants of success in a business are “people, process, and product.” Smart. No wonder the guy’s on TV. He’s right. The failure of any of the three will hurt a business, and maybe even rub it out.  

Oh, I can work cheap, just like the next guy, but I’m not going to do that for Mr. Big. For early stage, small, or lower mid-market companies, I can usually deliver a honey of a strategic assessment in record time. But for large mid-market companies, or Fortune 500 or other large companies, gimme a break. The job’s going to be tougher. These folks are going to pay through the nose, and they’ll be happy to do it. You don’t question the plumber’s price when your toilet’s overflowing.

Companies often want to keep things in the family and fix their problems behind closed doors. As I said, everyone loves a bargain. And isn’t that what they’re already paying the brains of their outfits—the top execs and senior leadership team—to do? Sure. These are the people that should have the responsibility of developing strategies for growth and profitability. If you believe that I’ve got a bridge you might be interested in.

I’ve seen too many cases in which poor strategy assessments led to profits flatlining and companies taking the fall. Obviously, an “action plan” based on a flawed strategic assessment is doomed to failure. I’ve also made something of a study of instances in which the strategy was sound but the implementation bit the dirt. For example, look at the way HP swallowed the Compaq operation. They figured that with Compaq in the bag they could take over Dell’s action. But instead of hitting Dell by underselling them, they figured they could win customers over with the old red-carpet service- with-a-smile treatment. That strategic misstep cost them plenty, and as for Dell—well, poor Michael cried all the way to the bank.

So, what’s my modus operandi? What does your intrepid Corporate Consultant say when a desperate CEO bursts into my little office and wails “Kamin, we’re in trouble. Big trouble. The company’s about to go under. I heard about you. You got a good reputation. But can you save us?”

Well, first I make the guy sit down and offer him a stiff drink. After he calms down a little I patiently explain that I can’t save the company without investigating the scene of the crime. After reviewing and analyzing the industry, the market, and the competitors, I tell him, I will finger the opportunities and challenges.

He sits back, starts to relax. Happens every time. He’s feeling better because he thinks I’m going to get him out of the   jam he’s in.

Then I drop the bomb.

“Of course, I will then need to take a hard look at you and all your cohorts. We’ll need to find the rotten apples. If you’ve developed strategies, why haven’t they worked? Who’s thrown a monkey wrench into the works? Once we identify what went wrong, we’ll make a new plan. It’ll be a whole new deal, and anyone who can’t take it knows where the door is.”

“But—”

He’s started to sweat again.

I give him the works.

“As for following through with the plan—well, that’ll be up to you, Mr. I’m-in-Trouble. You and your gang will have to take care of it yourselves. I can’t do everything for you.”  

That’s what I do. Since I’m not part of the operation I can think out of the box. I can help the ringleaders see a new way to run their business. After all, they work together every day. They know each other and they’re probably sick of each other. They’re suffering from creative inertia. They need the kind of kick a guy like me can supply.

Take Delta Airlines. They had an IT Capital Budgeting process that was so bogus that capital projects got stalled and weren’t approved for several months. They totally failed to optimize the use of their budget.

See, can use the lingo when I need to. And I needed to, because I was part of the consulting team that helped revise and improve the process. By the time we were done the most important IT capital projects were not only analyzed properly, but also approved and implemented. As a result, Delta Airlines now has an IT infrastructure and systems that have turned the company into an industry leader. I was proud of that job. Although I wish they’d taken my suggestion and dropped those damn baggage fees. Profit is all well and good, but sometimes you gotta make the people love you.  

Another caper was working with the executive team of a company that sold contact management software. They sold it B to B (that’s industry jargon for business to business).   I did a strategic and financial analysis of the relative profitability and long term growth potential of selling only B to B, or B to C (business to consumer), or a combination of both. The company ended up going with Door Number Three, the combo option. They soon became so successful that they were acquired by Salesforce, earning big bucks for the founders and investors.  

This has been another story from the files of the Corporate Consulting Detective.