Case Study: Healthcare TPA
IndustryHealthcare
ProblemPerformance Improvement Partners was hired by a third party administrator (TPA) in the healthcare industry. The problem; the cost of the IT function was significantly higher than the business could afford.
SolutionThe engagement commenced with the development of a business operations and information Technology roadmap which identified ineffective work processes and a gap in certain skill levels. Initially, the private equity firm asked PIP to outsource the IT department. After completion of a cost-benefit analysis, it was agreed that PIP IT Management Services Group should run the department for an interim period of time, with an immediate out provision for the client. Within approximately 9 months, new processes were implemented and there was a significant resource adjustment. The PIP engagement had a one-time cost of approximately $350,000 which delivered an annual cost savings estimated to be $1,500,000.
Case Study: Multi-site Consumer Products Manufacturer
IndustryConsumer Products Manufacturing
ProblemA multi-site consumer products manufacturing business was experiencing significant operational inefficiencies which had eroded profits and dramatically weakened on-time product delivery to its demanding retail chain customers. The company had made the decision to implement a high risk and financially costly solution: new ERP system that had a price tag of approximately $2,000,000.
SolutionThe portfolio company and the private equity firm asked PIP to provide a “second opinion” review to insure the system solution and the estimated investment were appropriate. The PIP analysis strongly indicated it made more sense to re-implement their current system than to develop and implement of an entirely new enterprise system. Together, we upgraded the software, utilized more capabilities within their existing system and leveraged third party software. To maximize the use of technology, PIP also implemented process changes, tested the application with select users to refine functionality, and trained personnel in a conference room pilot (day in the life) scenario. The total project cost was approximately $300,000, a fraction of the hard cost to implement a new system. Company also realized additional “lost opportunity” savings by implementing the changes in a matter of a few months. Costs of retraining staff were also eliminated.
Testimonials
“Charlesbank has worked with Performance Improvement Partners for several years. The feedback I receive from our organization on every project has been overwhelmingly positive. They are very responsive and provide quality deliverables.”
Charlesbank Partners, LLC
“Monomoy acquires/owns portfolio companies that have difficult operating environments and significant IT requirements. PIP is our go to IT consulting firm for all of our portfolio company projects because they understand business operations and implement technology quickly, efficiently and effectively. Their style of work and practical approach is like no organization we have worked with before.”
Monomoy Capital Partners
“Nautic Partners has worked with Performance Improvement Partners for several years. They are a unique set of seasoned technology personnel with deep experience who can quickly dive into a wide array of businesses. We have been very satisfied with the work they have done with our portfolio companies.”
Nautic Partners, LLC
“Performance Improvement Partners works with many different professionals within TA Associates and at our portfolio companies. They have gained great respect across our enterprise because of the quality of their work product and the manner in which they conduct themselves. We will continue to leverage their services both pre and post investment.”
The Riverside Company
“Prior to PIP, we worked with several other due diligence providers for new platform investments and were rarely satisfied with the results. PIP is now our sole MIS due diligence partner. We value their technical knowledge, flexibility and practical advice. Based on our experiences, we have engaged the firm in follow-up implementation projects in several of our portfolio companies.”
TA Associates, Inc
“Wind Point Partners works with PIP on both Information Technology diligence as well as Portfolio Company projects. This is a firm that understands the business needs of an equity sponsor as well as industry/technical requirements to make a portfolio company successful. We are very happy with the results of all their engagements with us and our portfolio companies.”
Wind Point Partners
“I worked with Performance Improvement Partners at my previous private equity firm and have worked with them exclusively since founding High Road Capital Partners. They are very pragmatic and do a great job of matching technical proficiency with economic reality. We use PIP for all of our IT diligence and make sure that they are involved in all portfolio company technology implementations.”
High Road Capital Partners
“Performance Improvement Partners conducted the IT Diligence and developed our decoupling plan as well as the transition services agreement. We were so impressed with their team that we hired PIP to support our technical decoupling and establish a new technical processing environment. These folks are fantastic; they continue to provide valued services that benefit our company.”
Dun and Bradstreet Credibility Corporation
“MLCOA is a national midsized medico legal services company based in Australia. Our equity sponsor who has successfully partnered with PIP for close to a decade recommended we speak with them. Their qualifications and reputation throughout a large portfolio of companies made it an easy decision. The PIP professionals worked with our staff to develop a business operations and information technology roadmap which was a complete success. As a result we chose them as our implementation partner which turned out to be another great decision.”
MLCOA
“We are very fast growth on-line business that places significant demands on our technical processing environment. Performance Improvement Partners was called in on very short notice to help us with our challenges. They quickly deployed a high quality team with experience in; on-line systems, enterprise applications, technical organization and technical infrastructure. They identified our issues, developed a plan and provided us with a comprehensive roadmap that was developed in a team approach with our organization.”
VitaCost.com
“Management Health Solutions has grown quickly both through organic means and add-on acquisitions. PIP conducted the diligence on our company; once we became a portfolio company they developed our plan and led our system implementation activities. This firm has dealt effectively with a demanding environment and every project has been a complete success.”
Management Health Solutions
“MPI is a sizeable life sciences business that has grown quickly over the years which has created challenges for IT. The team from PIP has impressed our senior technology leadership group from day one. This is a refreshing group of people because they deliver high quality results and truly care about their clients. ”
MPI Research
“Precyse Solutions is a fast growth, Healthcare Information Technology business that has worked with Performance Improvement Partners since 2003. We have a highly skilled IT team who were initially very skeptical about outside consultants, and in fact felt that once outside consultants come in to help, layoffs would follow. Ironically, the CIO and the team became so comfortable with the PIP resources and the value that they brought to the business that the CIO himself started initiating calls out to PIP to help him and our team figure out how to address difficult technology situations. Although we are now owned by a different private equity sponsor than when we first started with PIP, our CIO continues to leverage PIP and has successfully recommended them to our current sponsor for new projects.”
Precyse Solutions, LLC
“We appreciate PIP’s honest and direct approach to a level of service we have not seen before. They conducted an IT assessment for our company and made their conclusions early in the engagement. They could have continued running up billable days, but finished the engagement early at a fraction of the original estimate. PIP is a company with whom we will continue to work.”
Nudo Products, Inc
“Our company has a very complex manufacturing environment. PIP very quickly helped us by analyzing our business operations and then sorted out our technical situation. The result was a very comprehensive yet practical roadmap that helped us implement improvements in a building block approach.”
Marshfield Door Systems
“Our private equity sponsor recommended that we use PIP because they always act in the portfolio company’s best interest. They guided us through the systems selection with a solid process and highly experienced resources from their firm. The result was we selected the right system and they prepared us to implement with our resources.”
Lectrus Corporation
“Performance Improvement Partners has helped us with our system selection and implementation projects. They are very knowledgeable of our industry, company requirements, and technology solutions. We continue to be very impressed with the results of their work and the individuals working on our projects. Now we understand why our private equity sponsor speaks so highly of PIP and recommends their services to their portfolio companies.”
Polar Ray-O-Max Windows