Private Equity and Venture Capital firms are facing increased pressure to enhance profitability in their investments due to the recent lack of available credit to finance deals and a tough environment for startups.  However, by focusing on operations and embracing some of the newest approaches to process management, private equity and venture capital firms will be able to streamline the processes within their portfolio companies to ensure a realistic growth model. With these types of improvements, today’s fledgling companies will be in the best possible position to not only survive the downtown, but come out much more attractive at the other end.

Over the last year, a venture backed start-up insurance services company in Silicon Valley was on a great growth trajectory.  Using powerful data-driven techniques and processes, the company matched consumers with the best health care plans based on their health care needs. Conceptually, the company had attracted attention and praise from veterans in the healthcare market.  Operationally, though, the company struggled with customer acquisition and service.  Its customer satisfaction rates were frighteningly low, and the company projected it was losing millions in sales due to customers abandoning calls and going elsewhere to find coverage.

Under the direction of SSA & Co, the company began fixing its execution woes through Strategic Process Management.  Due to SPM, the company:

• Uncovered more than 100 opportunities across their value chain, prioritized them, and began executing a cluster of improvement projects within 2 months

• Projects regaining $5 million of excessive waste while delivering happier customers – and is embracing process improvement with entrepreneurial passion.