Real Estate Developer

Challenges

This company had four operating divisions squabbling over which was the core of the business. The company was considered successful by outsiders and had a good reputation, but there was very little wealth or value generated by the business for its owners.

Solutions

  • Defined the value story. We worked to understand the company’s value drivers and enacted a strategy driven by our findings.

  • Positioned the company appropriately. In a crowded industry, the company found its own niche that would be attractive to capital sources, investors and high quality employees.

  • Aligned information systems with strategy. Internal systems were retooled to accurately monitor the company’s core wealth-generating activities.

  • Aligned compensation with strategy. Reset compensation to reward results that move the company toward strategic goals.

Outcome

The atmosphere at this company changed quickly when a common strategy was elaborated and each division understood how it contributed to the whole. The real estate industry’s subsequent demise continues to challenge the company, but the improvements gave management the tools to make the right decisions in the face of unprecedented industry conditions.

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