Case Studies

Management Team Coaching

Feb 14 2013
By: Doron York
Categories: Case Studies
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CS No. 030912 – dSPACE Inc. / Advance Electronic Technology & Engineering Services A 18 year old German-owned US subsidiary located in Wixom, MI.

The Engagement

The engagement was divided into the following objectives:

  • To assess the current management talent and assist the current President  with the company leadership development
  • To assist the senior management team in redesigning the company to accommodate the market demands
  • To coach the Director of Engineering in creating a new management team and redesigning the operation workflow

The Company Profile

The business unit was operating for 12-15 years as a sales organization for the parent company in Germany. The company has been operating with a very lean management structure in a directive and controlled environment.  Despite the economic crises the company experienced rapid growth which forced the management team to undertake the restructuring effort.

The challenges:

  • To move away from the controlled environment to a more open and engaging workflow.
  • How to create independent operations and maintain a consistent representation of the parent company’s brand in the US.
  • Align on a strategic plan that will give the company the competitive advantage it needs to breakthrough to the next level of performance.
  • To transform the chaos in the operations and production to a more stable and organized environment.
  • The stress level in operations especially in the Q4 of each year was very high, resulted in high employees’ turnover and difficulties in maintaining the necessary talent.

The Results!

After 18 months of coaching we produced some remarkable breakthroughs towards the company’s future:

  • The company established a senior management team with a clear vision.
  • For the first time the company has undertaken creating a strategic business plan in collaboration with, and input of all members of the management team.
  • The Engineering and Production Department is now organized with a management team of 7 who are responsible for all aspects of the business operations and production.
  • Despite the economic crises and through the corporate restructuring process the company maintained a consistent book of business with small increases in volume.
  • The stress level in operation is reduced dramatically.
  • The company is on track to noticeably exceed the last two years of booking.

It is what the clients say that counts:

“I met Doron York, founder and CEO of PAAR & Company (Former Business Edge International) after hearing his presentation at a MSED meeting mid-year. We started an engagement with Doron about October of last year. Since then he has conducted periodic coaching sessions with me as well as with a handful of my staff. The sessions have been both one on one and in groups. The improvement in the energy and ownership displayed by my staff has been remarkable. This has been one of the wiser investments that I have made for dSPACE.”

Kevin Kott – President dSPACE Inc.

The R.O.C

After 18 months into the engagement, the company currently evaluates the R.O.C at minimum of 6 times! (600%)

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CEO Coaching

Aug 23 2012
By: Doron York
Categories: Case Studies
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CS No. 061012 – A Tier One Automotive Supplier. A $15B Fortune 200 publically traded Automotive Supplier Company in Southfield, MI.

The Engagement

Coaching a senior executive who is a prime candidate for the CEO position of a $15B Fortune 200 corporation.

The Challange

In 2010 the current CEO announced his retirement. The company’s board started a global search for a qualified individual to replace the retired CEO. One of the candidates was the current CFO and one of the top runners for the job.

Out of a concern for his personality’s traits and his “Rough” management style, the Board of Directors decides to offer the individual the opportunity to participate in executive coaching engagement with the intention and objective to elevate his executive presence, soften his management style and make his leadership footprint highly approachable and visible.

The Challenge: The individual has over 20 years of senior management experience, highly accomplished and opinionated with an impressive track record of results, including taking the company successfully through the bankruptcy process and bringing it back to life, and does not see clearly why there is a need to make any personal changes.

The Results!

During the board selection process and after 6-month of coaching:

  • The individual was selected for the job with a majority board approval
  • During the process the company outperformed its business projections
  • The company maintained its consistent leadership presence within its customer base
  • The individual will stay with the company, which is a significant financial gain for the long run.

The R.O.C

According to the board of directors the return on their investment on the coaching was invaluable and will yield significant measurable return in the immediate future.

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Business Coaching

Nov 29 2010
By: Doron York
Categories: Case Studies
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CS No. 030911 – Financial Services: A 10 year old minority-owned financial service company in Southfield, MI.

The Engagement

Coaching third generation managing partners in redesigning their business and their future.

The Breakthrough Target

The breakthrough targets were as follows:

  • Breakthrough in the ability to generate revenue
  • Increase the firm’s market share
  • Creation of a viable operating model
  • Deliver the firm’s value proposition
  • Creation of a bold future for the company

The Results!

After eight months of coaching we produced some remarkable breakthroughs towards the company’s future:

  • Company increased revenue by 166% year-over-year
  • Profit rose from $18K in loss to $33K in profit an increases of 84%
  • The firm relocated the main office to a premier location in a high traffic business district
  • Created a bold strategic intent for the company that reached years into the future
  • The firm introduce three new services that resulted in a new line of business with high potential profit center

The R.O.C

After 14 months into the engagement, the managing partners currently evaluate the R.O.C at minimum of 12 times! (1200%)

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CEO Coaching

Sep 08 2007
By: Doron York
Categories: Case Studies
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CS No. 97014 – Softura Inc. a $5M software development company in Novi MI.

The Engagement: Coaching a successful entrepreneur to become a highly effective CEO. To support his effort to build a high performance management team.

The Challenge

Since its inception in 1996, the company had struggled to break the $1M mark in revenue. The management team was facing some of their biggest challenges yet:

  • How to break the $1M mark
  • How to expand the management to fulfill on all of the company needs
  • How to build a sustainable sales force
  • How to repackage the company’s service offering in the most effective way
  • How to organize the company’s internal operation support

The Predictable Future:

The lean management team will keep operating most of the time in a reaction mode to the daily demands with no real planning for future business development. The company will not have an internal support staff to run day to day operations and office management.

  • The CEO of the company will work long hours with a lot of stress and remain overwhelmed
  • The lean management team will struggle to fulfill all of the company management accountabilities
  • The CEO and a senior project manager will be responsible for most of the company sales
  • The company will end the year with approximately $900K in revenue
  • The company will not deliver significant growth over the past five year period
  • The company’s financials will be very tight prohibiting investment in future growth
  • The company will continue to manage expenses and payroll on a month to month basis
  • The company’s product offerings will be undermined in the market place for lack of marketing support

The breakthrough targets were as follows:

  • To salvage the book of business
  • To re-invent and re-engineer the program management group
  • To increase on-time delivery to 60% in 6 months
  • To establish new and renewed communication lines with all customer points of contact
  • To increases sales by 25% at year-end

The Results!

After a year of coaching we produced some remarkable breakthroughs towards the company’s future:

  • The CEO of the company reduced his hours about 40% and no longer spends the weekends in the office
  • The management team created clear and powerful state of accountabilities that handled all of the company operation without loose ends
  • The company now has a sales department; the CEO and senior project manager are no longer the prime sales drivers
  • The company will end the year with $1.5M in revenue, about 166% over 2002
  • The company created a budget for future business development and has sufficient overhang in operating capital and is no longer “booth scraping” from month to month
  • The company’s product lines are well defined, organized and have marketing support
  • The company created an opportunity in the market place to become a lead force in off shore application development with a multi-million market opportunity

What did the client say?

“Taking on Transformational Coaching has allowed me to more clearly define my priorities and focus on the parts of my business where it will truly make a difference.”

“Working with a coach for the last 12 months has had effects in all aspects of my life. As the company’s CEO, I find myself focused on what will truly make a difference in accomplishing our corporate goals. I find myself tremendously more effective and at peace with the direction and growth plan of the company. We had very close to a 166% increase in revenue over the same time last year; and we are on track to have an estimated 200% increase next year over this year. Without the coaching it looked impossible and was completely unpredictable. Most importantly, I am finding myself with a lot more time to be with my family.”

“I know this may seem like a small accomplishment but for me it is big.  Before we took on coaching when I was at home I was never really at home.  What I mean by that is I was always thinking about work and what we had to do there.  My daughters would always catch me in my thousand mile stare and say “Daddy, stop thinking about work” when I was with them.   For the last 6 months when I am with my daughters I’m actually “with them”. I’m clear that without the coaching I would not have really seen all the great and miraculous things they do, and I would have missed a lot of wonderful times we have together now.”

Mark Murphy – Founder & CEO

The R.O.C.

Based on the year end financials, the breakthroughs generated out of the coaching were 9 times R.O.I.

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Executive Coaching

Jun 19 2006
By: Doron York
Categories: Case Studies
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CS No. 040222 – Software Provider. A $1M Health Care software development company in Farmington Hills, MI.

The Engagement:

Coaching a struggling CEO in order to put his company on a path of profitable growth.

The Challenges

After 7 years of operating the company, which was struggling to cause a significant growth in revenue and market share, the company is facing the following challenges:

  • Lack of ability to cause significant revenue growth
  • The revenue stream is insufficient to cover operating expenses and to provide the owners with average yearly income
  • Lack of ability to penetrate a larger market share
  • Creating an effective marketing strategy and marketing management
  • No proactive sales approach
  • Some level of frustration on behalf of management and some sense of resignation
  • To reinvent the company that will live and operate beyond its founders

The critical question: Does the management team have the confidence and know how that is required to cause the breakthrough?

The Predictable Future

  • The company will continue to struggle in its attempt to grow the business with a high level of frustration
  • The revenue will continue to grow in a very unsatisfactory rate
  • The financial state of the company will stay the same and more likely deteriorate

The company owners created the following breakthrough targets:

  • 230% increase in total revenue
  • 200% increase in hourly billing
  • 300% increase in the number of active contract
  • Create a consistency in owners compensation on a monthly basis
  • 100% increase in owners personal net worth

The Results!

After a year of coaching we produced some remarkable breakthroughs towards the company’s future:

  • 186% increases in total revenue
  • 128% increases in hourly billing
  • 220% increases in the number of active contract
  • Created a consistency in owners compensation on a monthly basis
  • 35% increases in owners personal net worth

What did the client say?

“It is very difficult to measure the return on investment for this remarkable transformation. It is significantly more than 10 fold and over the next 5-10 years will be beyond measure.”

Managing Director – New Product Development

The R.O.I

Based on the year end financials, the breakthroughs coaching generated 4 times R.O.I.

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Family Business Coaching

Jul 11 2005
By: Doron York
Categories: Case Studies
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CS No. 050711 – Financial Services: A 70 year old family-owned insurance agency & financial service company in Dearborn, MI.

The Engagement

Coaching third generation managing partners in redesigning their business and their future.

The Challenges

After a successful transition to the second generation, the agency was contemplating its transition to the third generation and faced the following challenges:

  • Revenue in the property/casualty line of business was stagnating, losing approximately 4% per year
  • Revenue from the life department was subsidizing the business
  • Total agency profit, without contingencies, was predicted to be a $50K loss
  • Compensation expense was high for a company of this size
  • There was a high degree of frustration and tension among the partners
  • The workplace was not a pleasant place to work
  • There was no collaboration, strategic action plan or cross-selling occurring in the company
  • Customer satisfaction was at an all-time low
  • The managing partners were not aligned on the future development of the business

The Predictable Future

Without intervention and/or reinvention, the business would have continued as follows:

  • The partners would struggle to create and develop an effective transition plan with the alignment of all the partners
  • The agency would continue to lose money
  • The life department would continue to subsidize the business
  • Most likely, the younger generation would pursue other career opportunities
  • The company would be sold or closed down within 5 years
  • The family legacy would be gone

The Breakthrough Target

The breakthrough targets were as follows:

  • To effectively transition the management of the business to the third generation
  • To redesign the business and create a 5 year strategic plan, identifying new business and market opportunities
  • To invent an inspiring and invigorating future for all parties
  • To increase revenue, reduce operating expenses and have the company be profitable by year-end
  • To create a pleasant and fun workplace
  • To develop an exit strategy for the senior partners

The Results!

After a year of coaching, the business achieved the following results:

  • Completed a comprehensive and effective transition of the company to the third generation
  • Redesigned and remodeled the entire office with a new, inspiring physical space and a complete overhaul of technology
  • Created a new operations management model
  • Updated the company’s by-laws, and redistributed ownership of the stock
  • Shifted the management decision-making process from family-driven objectives to one based on business objectives, with specific accountability and ownership
  • Instituted a new financial decision process model
  • Drastically reduced operating expenses and redesigned the partner’s compensation plan
  • Completed a 3-5 year strategic business plan with specific growth targets and financial accountability
  • Aligned the partners on the strategic direction of the company
  • Increased company revenue by 9%
  • For the first time in many years, the company generated a surplus at year-end

The R.O.C

Based on the year end financials, the coaching generated 8 times R.O.I.

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CEO Coaching / Nonprofit Org

Jun 11 2005
By: Doron York
Categories: Case Studies
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CS No. 050609 – Non-Profit The Epilepsy Foundation of Michigan

The Engagement

Coaching the CEO in changing and redesigning the business model to a powerful and profitable one.

The Challenge

After 15+ years serving the Michigan community, the foundation faced one of its most difficult years of operation. The main revenue sources of the foundation – United Way, the U.S.Government, and other third parties – significantly reduced their contribution dollars. The foundation executives predicted a huge deficit, and were challenged by how to replace the lost income and leverage corporate dollars.

Moreover, staff morale was at an all-time low.

The Predictable Future

Without intervention and/or re-invention, the foundation would find itself in the following drift:

  • The deficit would continue to grow
  • The United Way’s reduction in its contribution would decrease by 12.5% as opposed to the anticipated 10%
  • The operating deficit would continue to grow
  • Corporate dollars would continue to decline
  • Staff morale would continue to deteriorate
  • The foundation would face the possibility of closing its doors

The Breakthrough Targets were as follows:

  1. Create new sources of revenue
  2. Create a new and innovative business plan
  3. Reduce operating costs
  4. Increase staff morale

The Results

By year-end, the foundation had accomplished the following:

  • (1) The year ended with a surplus instead of a deficit
  • (2) Staff was reduced by 40% over the previous year
  • (3) The foundation touched the same number of lives
  • (4) The foundation created and cultivated relationships with several major local corporations
  • (5) An innovative marketing plan was implemented
  • (6) Four major successful fundraising events were delivered in the last quarter. These events generated over 60% of the overall annual revenue
  • (7) The staff was rejuvenated and was excited about the new future
  • (8) The board became much more active
  • (9) The revenue projection for 2005 was to exceed the target by 15%

What did the client say?

“From the coaching, the most useful take away for me is the shift in my personal thinking about approaching the Foundation as a business. After 15 years in the nonprofit sector, I realized that it is no different than leading and managing a for- profit business. It has made a huge impact on my ability to build business relationships for the future and to exceed our target. I am much more energetic and optimistic than I have been in years.”

Arlene S. Gorelick, MPH – President

The R.O.C (Return On Coaching):

Based on the year end financials, the coaching generated 4 times R.O.I.

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C-Level Management Coaching

Apr 11 2004
By: Doron York
Categories: Case Studies
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CS No. 041117 – Fortune 500 Corporation
A Fortune 500 Food Manufacturing Co located in Decatur Illinois.

The Engagement:

Coaching a senior level management team in turning the struggling division into a highly profitable business.

The Challenge:

This company had a $50 million revenue division manufacturing specialty products for use in food products and for industrial applications. The division was administered as part of a $1 billion commodity products division. Manufacturing consisted of seven small production plants scattered across 6 states in isolated locations. The division was generating a mediocre $500,000 in operating income on $50 million in sales and had been stagnant for years.

The Predictable Future:

  • No growth in sales or operating income for a period of years.
  • Lack of leadership in establishing the direction for the business.
  • Lack of capacity to launch new, high margin, specialty products.
  • A need for capital investment to address the lack of capacity.
  • A lack of communication between the manufacturing locations for capacity and talent allocation.
  • The division would be shut down or sold off piecemeal for lack of return on invested capital.

The Breakthrough Targets:

  • Identify and implement structural changes to the business and its management to improve profitability.
  • Address the capacity issues.
  • Establish a direction and management culture to allow the business to grow in the future.

The Action Plan:

  • Established a management structure to run the business as a specialty business rather than as a commodity business.
  • Modify the commodity division accounting system to break out the specialty division accounting separately, allowing the individual plant economic performance and product line profitability to be evaluated.
  • Established each plant as a free standing profit center.
  • Closed and sell one unprofitable plant.
  • Changed out two of seven plant managers to instill new life and fresh ideas into the plants.
  • Eliminated several unprofitable product lines which made capacity available.
  • Eliminated the need for capital investment by using the now available capacity for new, high margin products that were waiting on the capital investment.

The Breakthroughs:

Over a period of 18 months of executive coaching, the division moved to an annual operating income of $5 million/year, up from $500,000/year.

The business culture was changed from running a commodity division of high volume, low margin manufacturing to a specialty culture of low volume, high performance, and high margin products.

The plants now ran as free standing profit centers but functioned as a team to allocate both personnel and production capacity across the division to maximize the profitability of the specialty division as a whole.

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Executive Coaching

Jan 14 2004
By: Doron York
Categories: Case Studies
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CS No. 040122 – Information Technology – SVP of Operation
Fortune 1000 Data Service Company – Irvin TX.

The Engagement:

Coaching a Senior VP in Technology Operation during his transition to a new position.

The Challenges:

During the past 5 years the business continued to stagnate with some areas declining to the point of a critical state. The managing executive was facing the following:

  • Managing a division that was on the decline with a low consumer rating
  • Struggling to maintain the current book of business which was continuing to shrink
  • Managing an unmotivated workforce with low moral
  • About to lose his job and all of his career accomplishments

The Predictable Future:

If there is no intervention or drastic change, the following is the most probable future:

  • The parent company will discontinue the product line and shut the business down
  • About 600 people will lose their jobs
  • The executive will find himself out of a job
  • He will have to start his career path all over again at the age of 52

The Coaching Objectives and Committed Outcomes

Business:

  • To turn the division around
  • To save as many jobs as possible
  • To elevate the overall customer rating

Personal:

  • To create an exit strategy by design vs. by default
  • To develop a new level of leadership
  • To develop the ability to provide effective management in a state of constant breakdowns
  • To be able to stand powerfully in the face of uncertainty

The Results

After an intense 16 months of coaching with an investment of $60K, the client produced the following extraordinary results:

  • Turned around the division from losing money to a positive cash flow
  • Architected and negotiated a buyout by its competitor for twice the expected price
  • Secured 380 jobs
  • Was offered a senior position in the parent company headquarters
  • Exited from his current company to accept a CEO position within the acquiring company
  • His personal compensation increased over 360%

What did the client say?

“For me the bottom line is simple, if I had not taken on the coaching at this point in my career, it would probably be over. I have grown in those 16 month more that I have in all of my years in business. I say; you CAN teach an old dog new tricks. I am testament to it. Without a doubt (believe me I had many of them) High Impact Coaching is a phenomenal methodology that every leader should use. It literally saved me and gave me a new lease on my career”

The R.O.C – (Return on Coaching)

While very difficult to be accurate, one could say
conservatively at least 1000% time over!

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Executive Team Coaching

Sep 08 2003
By: Doron York
Categories: Case Studies
No Comments

CS No. 030911 – Information Technology in Palo Alto, CA.
A three year old West Coast Application Development firm that specializes in corporate collaboration tools.

The Engagement:

Coaching a group of business partners in their transition to become a well-organized management team.

The Breakthrough Targets:

The objective of the coaching was to develop the partners’ capability and capacity to become a cohesive management team in order to increases the company’s Leadership Equity that will cause the following:

  • Breakthrough in the ability to generate revenue
  • Dramatic increases in profitability
  • Creation of a viable operating model
  • Complete alignment between the founders
  • To increase effectiveness to match ongoing demands
  • Creation of a bold future for the company

The Results!

After a year of coaching we produced some remarkable breakthroughs towards the company’s future:

  • Company increased revenue by 146% year-over-year
  • Profit rose from $58K in loss to $63K in profit
  • The founders are aligned and committed to speaking “straight” and full self-expression
  • Created a bold strategic intent for the company that reached years into the future

The R.O.I.

After 18 months into the engagement, the company merged with a complementary development firm increasing the overall company market value in excess of 200%. The personal equity of each partner increased over their initial investment in excess of 1000%.

The coaching generated 4 times R.O.I.

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  • About The Company
    PAAR & Company is a global enterprise that specializes in the impossible. We are in the business of coaching corporate leaders in advancing forward those areas that are making an immediate, relevant and positive impact on their leadership presence and that are highly critical to the sustainability of their enterprise.