The founder and owner of the business ran the organization as a “one-man show” making all important decisions and limiting growth to what a single person could manage. When the omnibus leader unexpectedly died, clients, employees, and new shareholders needed convincing evidence that the company would survive. The company needed a survival plan.
“I realized the market conditions and company positioning provided a unique opportunity for value creation, if an aggressive plan of total improvement could be rapidly implemented,” said SMB Chief Executive Officer, Paulo Reátegui.
Paulo Reátegui, SMB CEO
The first step initiated was to ensure that the people were taken care of. It was then that an HR function was created to manage the most valuable asset: the people. To attract and retain great talent, Paulo spearheaded improving compensation, benefits, and rewards. “My plan incorporated a set of benefits closely related to improved, clarified, and detailed job descriptions with performance objectives. This allowed exact accountability.”
Additionally, Paulo was convinced that a long-term career view needed to be present so that employees would have incentives to achieve objectives, learn and grow.
The second most important change that Paulo envisioned and implemented was a clear definition of departmental structure and responsibilities, supported by relevant and timely reporting which allowed for data-driven timely decisions. Workflows were designed, implemented, and managed to ensure metrics for performance tracking and the quick identification of issues.
Since the company was self-funded, improving financial reports to aid in negotiating more favorable financing terms was of upmost urgency. Paulo implemented a set of ratios to manage and improve over time, allowing for progressive lowering of financing cost.
On the revenue-generation side of business, Paulo streamlined marketing tactics to narrow the sales focus on clients needing high-margin value-added services such as IT outsourcing and specialized software. A thorough analysis of offerings was undertaken which yielded the information necessary to decide on which products and services to invest in. When an offering gap was identified, Paulo negotiated partnerships with firms providing supplemental expertise.
By exercising a holistic view of management and maintaining keen attention to the details of day-to-day management, Paulo was able to transition the company to an efficient, data-based managed company with a rapid response management team.
Over the ensuring seven years, “revenue grew from $4 million to $25 million, and headcount expanded from 50 to 350. The company rose to one of the top two information-technology integrators in Peru and the country’s largest business partner with IBM, Microsoft, and Cisco.”
Watch full video interview below.
Contact Paulo Reátegui via LinkedIn or his Career WebFolio.
Fred Coon, CEO
ViewPoint© is a production of The US AT Work Network© and Stewart, Cooper & Coon, a Human Capital Strategies Corporation. Contact: Fred Coon – 866-883-4200, Ext. 200, for more information.
© 2004-2022 Stewart, Cooper, & Coon, Inc. All rights reserved. Limited to personal use and allowable only if this copyright message is left intact. Any duplication, alteration, or publishing of this content without express company permission is prohibited. Contact fcoon@stewartcoopercoon.com.