Driving change with senior level leadership
Telecommunications Company – Improved Operations and Restored Shareholder Value
A Publicly held telecommunications company (largest independent payphone company) with revenues of $110 million, 450 employees, servicing over 43,000 phones in 40 states suddenly found itself facing a number of internal issues: deteriorating operations, stock options issued outside of plan and major lawsuits. In addition, although the industry appeared stable, it was quickly heading towards a negative trend. The company was operating at a loss and was in desperate need of stabilization.
Our CEO was hired by the Board of Directors in the position of President and Chief Executive Officer. The challenges were to restore trust with shareholders, reduce losses, increase customer retention
and grow the company by turning-around a three-year trend of declining performance in operations.
Our CEO successfully:
- Cleaned up numerous shareholder issues, resulting in renewed trust and credibility with major shareholders.
- Repositioned the company and developed a strategic direction that enhanced performance and renewed attractiveness as merger candidate, the ultimate strategic solution.
- Created a new quality service strategy and improved customer care to world-class standards.
- Reduced annual customer churn rate by 41% (13% to 7.7%).
- Increased installed phone base – reversed three-year declining phone base; increased phone base for three years. Grew base 12% in a declining market.
- Rebuilt the management team, decentralized the organization, and reorganized sales.
- Turned around troubled division resulting in profit growth for first time in two years. Improved this unit’s attractiveness from a potential write-off to a $4.2 million gain at time of divestiture.
- Increased shareholder value 134%.
This company merged with a competitor, as the preferred strategic solution given the industry dynamics.
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