The client was privatised by the government in the mid 1980’s. Post privatisation it continued to earn up to 95% of its revenue from the Government. Its best financial performance was recorded in 2004. The organisation had good succession in place and operated with 2 unions. In 2006 the CEO realised that as a fixed revenue contractor the organisation had to improve its efficiency and engaged MindSpring in the 3rd quarter of 2006 to help with a mindset change program.
To help the organisation shift from a “government” contractor mindset to a commercially driven mindset.
The chart below show three performance metrics used during the project; revenue, gross profit and operating profit for the years 2004, 05, 06, 07 and 08. The results are presented as an index based on the 2004 results. For example, in 2006 revenue was 73% of the 2004 revenue while gross profit was 70% of 2004 gross profit and operating profit was 35% of 2004 operating profit. The impact of the project was such that by 2008, although revenue was only 76% of 2004, gross profit has risen to 87% and operating profit to 94% of the 2004 results demonstrating how a significant change in organisational mindset can lead to a significant improvement in financial performance. More remarkable is that the client achieved the results with the same employees and number of employees.