How to Achieve Growth and Profitability

How to Achieve Growth & Profitability
Lexy Kessler, Stephen Pimpo & Mark Johnson | January 24, 2018
www.aronsonllc.com/blogs/fedpoint

2© 2018 | www.aronsonllc.com | www.aronsonllc.com/blogs |
Government contractors have had to become
leaner and more agile, adapting rapidly and
adopting new tactics. They are becoming
more efficient in the delivery of services,
including utilizing technology whenever
possible. However, the uncertainty of the
government market is forcing quick
adjustments and contractors need to be
aware of those possibilities. “Strategize,
optimize and realize” should be the new
mantra for companies that want to stay
ahead of the curve.
Why Are We Here Today?

Trends Affecting These Companies
Evolution
• New normal for government
contracting
• Potential for increase in
DOD spending in 2018
• Traditional contractors to see
pressure from non-traditional
competitors – government
seeking commercial solutions
• Proactive efficiency in
technology
• Defense and infrastructure
• Shrinking market
• Significant price pressures
coupled with cost increases
• Industry consolidation and
divesture
Spending Federal Priorities

2017 Analysis & Outlook
• LPTA has driven down
margins and capabilities
• Contractors taking on
inordinate profit and
performance risk
• Compliance mandates have
driven costs up
• Revenue recognition and
lease accounting changes
coming
• Sluggish transition of
Administration
Contractor Profit
Contractor Risk &
Cost
Profit, Risk, Cost
• Profit pressure, compliance
demands, spending shifts, and
competition to drive M&A
acceleration
• Popular contracts and agencies
key to interest and value
• Streamlining focus and approach
• Wave of Federal worker
retirements continues to grow
• Generational workforce gap
• Public perception low
• Millennials less interested in
GovCon culture and perceive
fewer, slower opportunities
Millennials in the Workforce M&A on the Rise

What Does This Mean For You?

• Re-engineer back-office & delivery
processes
• Implement and leverage full capacity
of accounting / ERP / CRM systems
for quick efficiency gains
• Aggressively address emerging /
changing cybersecurity
requirements
• Monitor and prepare for cyber
incidents – they will happen to you
• Be CAS and SCA compliant
before the auditors call
• Aggressively address
cybersecurity acquisition
requirements & know how
to recoup the costs
• Use compliance with new
requirements as a
competitive advantage
Operations & Systems Contracts Compliance
The New Govconomy

The New Govconomy
• Change personnel / skills to
solution / capability needs
• Manage executive compensation
• Proactively address SCA
compliance
• Adapt culture and processes for
next-gen leaders
• Implement accounting rule
changes to ensure accurate
financial data
• Explore available tax credits
Financial Talent Management

The New Govconomy
Corporate Growth
• Strategically plan for contract opportunities
• Increase in use of joint ventures
• Clearly demonstrating solutions/capabilities
• Enforce strict bid/no-bid process
• Diversify into adjacent service offerings &
agencies (organic growth, M&A or both)
• Balance B&P spend vs. cost reductions

• Responding to client needs within
contract scope
• Performing high-quality work
• Managing compliance to contract terms
• Driving increased client service by
establishing and expanding relationships
• Identifying new opportunities
• Introducing new ideas
• Protecting your territory
• Building a strong brand across an
agency
Contract Management vs. Account Management
CONTRACT MANAGEMENT ACCOUNT MANAGEMENT

A Simple Formula for Growing Accounts
• Penetrate – entering a new account by winning a competition, being hired sole
source or by being added to a team
• Radiate – leveraging your presence under contract to proactively expand
relationships and grow revenue
• Insulate – protecting the business and relationships you have build from the
inevitable attempts of competitors to take them
The overall objective is to
develop
“Clients for Life”

Growing Business Development Folks
• Provides huge upside and real value
• Current employees have:
– Been vetted through the hiring process
– Have performed successfully and have a proven track record
– Understand the corporate culture and organization
– Know the competition and your value proposition
– Have a command of the company’s service offerings and products
• Client facing and delivery professionals can become your best sales people
• All employees can help sell – not in the same way, and some will be better than
others

Selecting the Right Deal
• Core service offerings? Can you “play to your strengths?”
• Do you have relevant past performance and corporate quals?
• Size, timeframe, contract type and vehicle?
• Do you know the client? Does the client know you?
• What are the current issues, budget outlook?
• Who are the incumbents and competitors?
• Right personnel or appropriate teaming partners?
• What are the price points? Can you be competitive?
• Have you been able to talk to the client or gain market
intelligence?
Sometimes you
just
have to let go!

One “Size” Does Not Fit All
We look at where a business fits in our Small Business Growth Continuum (i.e. DESTINY)
to determine the approach to accelerate their revenue growth:
Dream
Evolve
Sustain
Transform
Transform – A firm typically with $22M+ in revenue that must
“transform” to compete upon graduation.
Sustain – A firm typically with $12 -22M in revenue that is looking
to “sustain” their growth in the market.
Evolve – A firm typically with $5-12M in revenue that must
“evolve” to compete on a broader level.
Dream – A firm typically with $1-5M in revenue that has a “dream”
to grow their business into something greater.
The strategic and tactical approach to growth differs in each phase of the continuum.

• We see many companies that have graduated and fallen back, and we have
adopted the term 30-20 company for those firms
• How do you avoid becoming a 30-20 company?
– Plan strategically on how to continue to maintain and grow revenue from small
business set aside contracts
• Seek contract vehicles that will extend the life of your access to SDB work
• Identify a “flip” partner for re-competes
• Consider if there are similar opportunities to strategically form a MPP and JV’s
– Never lose focus on quality delivery and client relationships
– Understand the competitive landscape on each deal
– Team to Win
What is most important for your business?

What Does This Mean For You?
What does
this mean
for
you

Your Presenters
LEXY KESSLER
Partner
Aronson LLC

Your Presenters
STEPHEN PIMPO
Principal
Greenhouse Consulting

Your Presenters
MARK JOHNSON
Managing Partner
3A Broker Services

Contact & Connect with Us
Mark Johnson
linkedin.com/in/mark-johnson-a304224/
Lexy Kessler
301.231.6218
lkessler@aronsonllc.com
Stephen Pimpo
410.903.1548
spimpo@Greenhousefirm.com
linkedin.com/in/lexykessler linkedin.com/in/stephenpimpo/
mark@3absllp.com
610.357.9099

How to Achieve Growth and Profitability

Recomendados

Recomendados

Más contenido relacionado

Último

Último (20)

Destacado

Destacado (20)

How to Achieve Growth and Profitability

Notas del editor