Case Studies
IMG Digital
Summary
ERL undertook the design and restructuring of IMG Digital in an accelerated 13 week project from initial meeting to signed outsourcing contracts with a technology partner.
Business Requirement
IMG is the world's premier and most diversified sports, entertainment and Media Company. It partners with the world's leading marketers and media networks to help them grow their businesses through event properties, media production and distribution, talent brands, sponsorship consulting, brand licensing, sponsorship sales and other services. IMG Digital is the division of IMG responsible for major websites and on-line activities
IMG Digital was set-up to help exploit opportunities for IMG clients in the on-line world. In 10 years it established itself as a major force with responsibility for many high profile and extremely successful on-line sites for governing bodies such as The Royal & Ancient Golf Club (the Open), teams such as Manchester United, and individual stars such as Tiger Woods. By 2009, the IMG Digital division that was run out of New York and London, whilst maintaining a position at the cutting edge of sports websites was facing increasing competition from significantly lower cost suppliers. In-house efforts to use lower cost resources had only been partially successful and the organisation was faced with a need for major radical change in a short timescale
ERL Service
- ERL was approached by BestOutcome (IMG's consultancy) to look at the feasibility of restructuring the IMG Digital division with the objective of turning it around financially from loss making business but without compromising the services it provided to IMG's high profile clients
- Steve Bedborough initially undertook a rapid focused 2 week consultancy, assessing the divisions' skills profile, contracts, costs, budgets and service commitments resulting in presenting a report and recommendations to the IMG management board
- These included appointing a technology partner to transfer the majority of the development and operational staff via an outsourcing arrangement
- IMG accepted these recommendations which ERL was then contracted to implement.
- IMG was working to extremely tight timescales, which required all major restructuring costs to be accounted for in their then current financial year
- ERL used its network of Associates to identify a short list of ideal suppliers with significant offshore delivery capability, and ran a rapid tendering process to select a preferred technology partner that could work in a collaborative manner to meet this timescale
- In an unprecedented 13 weeks after the initial meeting, the division of around 100 people was fully restructured and a contract and SLA was signed with the technology partner transferring around a third of the IMG Digital staff
- Steve Bedborough was retained for a further 15 months, on a reducing resource basis to provide Contract Governance with the selected supplier and ensure that the arrangement delivered the predicted results. He was also responsible for developing and implementing new processes to enable IMG to continue to provide a first class service to their Clients despite the major changes
Benefits
IMG fully achieved their objective of turning around the IMG Digital business without any negative impacts on their extremely important clients. They were also able to meet the financial objective of accounting for the restructuring costs within their current business year.
Senior Vice President, Global Director of IMG Media
"Steve has helped IMG Media select a partner to outsource its digital business and has overseen the transition. His in-depth knowledge and attention to detail have proved a tremendous asset." April 1, 2010
Top qualities: Great Results, Personable, Expert
Music Choice PLC
Summary
ERL undertook the development and implementation of an 18 month Strategic Programme to enable “Competitive Advantage via Technology” for Music Choice PLC (MCE").
Business Requirement
Music Choice was the original digital music pioneer that has been providing non-stop, legal music via satellite TV since 1993. It plays non-stop music 24/7 with no ads or interruptions. The Executive had identified a need to expand their broadcast capability outside of the European Satellite footprint in a cost effective manner and update their outdated CD based technology but had neither the Programme Management or Technical skills required in – house.
ERL Service
- ERL had previously successfully provided Interim Operations Management for MCE and Steve Bedborough was appointed to undertake a strategic review of the issues and propose a solution
- He proposed to the MCE Board that the Technical Transformation should be outsourced to a 3rd Party Supplier whilst utilising the existing Broadcast knowledge of the in – house Technical Team. A budget of £8m was approved and Steve appointed to Programme Manage the Transformation for MCE
- He developed and evaluated the responses to the RFI and selected a joint HP/ Microsoft bid for the main Transformation and BT to develop a new Music Download solution
- ERL was accountable for managing the Suppliers; Budget Control; the physical relocation of the Broadcast Operations facility/ team; and the reorganisation of that team to ensure that the available skill set matched the new Technology, whilst maintaining a robust 24/7 broadcast service
- The whole programme was successfully delivered to budget and on time with no disruption to the Service
Benefits
The benefits to MCE far exceeded their original requirements and featured:
- Provision of a Global Content Network that comprised of their entire Music Library in digitised format that was secure, backed up, and available for broadcast/ sale anywhere in world, (subject to legal rights)
- Ability to broadcast via Satellite; IPTV; Broadband
- Ability to sell music downloads via web or satellite broadcast
- Ability to sell / set up local play out nodes anywhere in world for £50k each (previously restricted to Europe with a cost of £400k +)
- Ability to scale growth of Music Library (additional data rather than physical storage required)
- Ability to change music programming instantly on air
- More efficient processes for Music Creative Team
- Improved capabilities and processes for Operations Team
Article published by Microsoft In House Magazine as Case Study on HP / Microsoft collaboration on Programme.
CEO of MCE
- "You truly leave Music Choice a better, stronger and more flexible organisation than when you found it"
- "Always demonstrated the leadership to work around problems and find creative solutions - often with and through conflicting agendas. Truly innovative thinking and behaviour"
- "At many, many junctures in this journey, I have thanked the powers that be that you were on the team"
- "Bags of integrity and a direct and honest approach that is refreshing and gets results"
Foster MacCallum
Summary
ERL has introduced professional Operations and Project Management processes into Foster MacCallum (FM) to enable it to survive a deep recession and become profitable.
Business Requirement
FM specialises in partner channel development services in the Business to Business IT and Communications sector. These Cloud based professional services include partner market intelligence combined with highly visual partner assessment and scorecard dashboards for continuous management and development of partners with the greatest potential. To address market coverage gaps or establish a market presence, partner recruitment and M&A services are offered on a project-by-project basis.
The Founder of FM provided the Company vision, backed up by Angel investment, but FM was a typical start up with no management team; no processes; little operational knowledge; nor many skills in financial or people management. Consequently it operated at a loss and found it difficult to retain Clients.
ERL Service
- Steve Bedborough was initially appointed as Interim C.O.O. with the brief to develop and implement operational processes
- Subsequently Steve took on accountability for all Back office functions including HR; Finance; Client Management; Project delivery; Legal etc.
- ERL has provided an Interim Consultancy Service to FM in between other Interim Assignments ever since
- This service has included implementing better forecasting & pricing models; mentoring of Staff to develop in-house skills; & project management of major Client business (e.g. IBM)
- During the recession ERL also provided a micro Cash Management Service to allow FM to continue trading despite a 75% fall in annual revenue
- Preparation and development of an Information Memorandum to facilitate a future Trade Sale or Capital Injection to allow FM to grow to the next level
Benefits
- FM have posted an Operating Profit for the last 2 years
- FM have a well-trained ; knowledgeable Management Team
- FM have had an 80% repeat business model for the last 2 years
- FM have a draft IM ready for use when required
- FM are now well positioned to either grow significantly via acquisition or merger or weather any recession depending upon the prevailing economic climate
Founder and CEO of Foster MacCallum International Ltd
"Steve is highly experienced and effective in all aspects of company operations and development. His skills in the areas of business management and people development are exemplary.
He has helped Foster MacCallum to improve business forecasting and profitability with greater transparency. For project and service delivery he has set up simple but effective methodologies for on time, within budget tracking and improved levels of customer satisfaction, in turn leading to an increased rate of repeat business.
Over the years, it has always been a pleasure to work with Steve. Not only does he offer balanced and pragmatic advice, he has made significant improvements to the way we run our business."
Nunet AG
Summary
ERL restructured and enabled Nunet AG to hit EBITDA and Project Targets to facilitate a Trade Sale.
Business Requirement
Nunet specialised in Video Management Services for Mobile; Broadband; & IPTV and was based in Cologne, Germany. Its major Shareholder was IMG Worldwide Inc. who had been trying to divest Nunet AG for over 12 months as it was loss making and non-core to their Business. There were 5 interested parties but none prepared to commit to the asking price.
ERL Service
- Steve Bedborough was appointed Interim C.O.O. as a member of the Nunet AG Executive Board with a brief to ensure a Trade Sale on "best terms"
- He undertook a review of the Management Team and Processes which resulted in these being restructured to make Nunet AG more effective
- He led the Project and Legal team to agree a 3 year contract with Vodafone Europe which was Nunet's largest potential Client
- Established and led a Due Diligence process for the interested parties
Benefits
- Nunet were able to produce a positive EBITDA FY forecast for the 1st time in 3 years
- Removal of the perceived "management issues" that had been preventing a sale
- Signed agreement with Vodafone giving Nunet AG a viable future business model
- Set up Trade Sale Process to encourage competitive bids
- Delivered Trade Sale of Nunet AG to Kit Digital Inc. at target price of $11m within 4 months
Head of Global Media Operations for IMG Worldwide Inc.
"All of the steps you've indicated are important, appropriate and improve business performance in a way that Nunet could not have achieved without your help."