In each of these cases, the results we achieved far exceeded client expectations.
Leading Educational Institution
WARTS was recently engaged to analyse the sporting facilities of a large, well-renowned private education establishment in NSW and determine the most appropriate mechanism to maximise the facilities’ utilisation.
Formulation of an “academy approach” will target future links with a US collegiate-based model. This will allow the establishment to take its reputation for academia combined with sporting excellence to a previously unseen level in Australia.
The other major initiative was to open the facilities and experiences to the ‘old boys’/parents and friends network, thereby targeting an affluent market with their own offspring participating in various sports. Such an approach creates a heightened sense of tradition to the establishment, and will also result in a self-perpetuating income flow.
Importantly, this expands engagement from solely the existing student base, to now include present, past, and future students. Ongoing funds will allow for reinvestment to maintain the facilities and continue to build further facilities in coming years.
WARTS’ repositioning led to a realisation that supply and demand factors alone could lead the establishment from a $45 million p.a. base income to $60 million p.a. on the same numbers – a result of both increasing fees by driving excellence in facilities promotion, as well as corresponding excellence in coaching leading to improved results.
While the educational institution’s emphasis will always be on academia, through strategic links to Universities and senior sporting organisations it is set to become the pre-adult college of aspiration and opportunity.
TCF Industry Company
WARTS Principal Alan Williamson led an iconic Australian manufacturing business through a tumultuous period, performing a successful turnaround in an extremely difficult market.
Struggling with a contracting domestic supply base and swiftly diminishing customer list, a “no dreaming” policy was implemented – under this mantra, stakeholders were required to accept that core manufacturing in the first world was being overtaken in some cases by third world giants.
As a result, decisions were made to exit low- or no-margin businesses, and smart activity markets were targeted in their place. A second rule of “no favours” was introduced, clawing back margins in some areas and reigning in trading terms in others.
Profit was driven through improved technology, focusing on investment in the future rather than repeating or even upgrading the past.
A teamwork culture was built, permeating shop floor employees and their unions, through to senior management. Benefits of the new approach were clearly annunciated and alternatives calmly explained, with a new ethos built which those who chose to stay belonged to, and those who didn’t were able to exit with their heads held high.
The net result of the various initiatives was a renewed confidence in appropriate domestic manufacturing capability. The company orchestrated a 25% decrease in turnover, with a pendulum swing from heavy loss to respectable profit in the first year and every subsequent year thereafter.
Mr Williamson successfully took the business out of the red and into the black, where it remained until he decided to follow his passion and leverage his capabilities for other organisations, subsequently founding the exciting WARTS concept.
WARTS was recently called in to assist when a regional Australian business was placed into administration. The organisation had multiple sites and a retail and distribution network.
WARTS identified hereditary duplication, rationalised the business and helped introduce efficiency improvements. Austere purchasing policies were also put in place, with a rigorous marketing sell down focusing on clearance then closure.
Owing to the location of the business, WARTS executed a parochial play which involved media appeals to local communities in the regional areas to support a maximum outcome for the business and its employees.
Notably, WARTS also engaged competitors – who were seen as the reason for the business’s decline – to employ expertise and identify excellent employees. A process of sifting through the business’s current employees led to some staff being moved on but the organisation being left with a small, co-operative, and incentivised team. From here, regular employee engagement through personal contact and daily internal communications maintained motivational levels, while weekly sales targets per employee were also reported for accountability.
WARTS concurrently engaged in vigorous negotiations with creditors to lengthen settlement terms for outstandings, with significant and measurable success.
Finally, when all avenues were exhausted, two wide-ranging auctions were conducted. Initial recommendations put forward to the shareholders for acceptable finalised debtor levels were scrapped in favour of a far more aggressive pursuit led by WARTS – the result of which was a clean ledger with debts virtually collected in full, in line with a 100% cleanout of stock. Utlimately, WARTS achieved a remarkable 100 cents in the dollar for all parties, including creditors and employees.
• 3 sites sold or leased
• 2 remaining sites (one zoned for residential) returned to shareholders
WARTS’ expertise in trading, supply chain management, and employee engagement delivered a significantly greater benefit than had been expected by the appointing parties.
WARTS. FOR When you absolutely have to make things happen for the business.
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